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Welcome!

Presentation of KappAhl’s Q4 report

June – Aug 2009

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Håkan Westin CFO

• Q4 2009• Q1-Q4 2008/09• Five years summary• Market situation• Key conclusion• Questions?

Q4 Report

Christian W. JanssonCEO

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Highlights – Q4June to Aug 2009

• Operational and financial targets are achieved

• Increased market share• Strong gross margin

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Two weeks end Aug 2009 – focusing denim leggings, 40 000 sold

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Stores Aug 2009

• 319 stores• 2 new stores during Q4• 28 new stores net for the full year• Significant contribution from

new stores in sales and profit• 50 new stores under contract –

18 to be opened during Q1

92

144 53

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• Net sales MSEK 1 226 (1 103), an increase of 11.2 percent

• Operating profit MSEK 176 (182), excl. one-offs an increase of 17 percent

• Gross margin 61.4 (61.9) percent and operating margin 14.4 (13.6 excl. one-offs) percent

• Net profit MSEK 106 (113), equivalent to SEK 1.41 (1.51) per share

• Cash flow from continuing operations MSEK 100 (130)

Financial highlights – Q4

June to Aug 2009

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113106Net profit-43-47Tax expense156153Profit before tax-26-23Financial expense

00Financial income182176Operating profit110Other operating income

-32-28Administrative expenses-480-549Selling expenses683753Gross profit

-420-473Cost of goods sold11031226Net sales

2007/082008/09MSEK

Income statement – Q4

June to Aug 2009

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Cash flow – Q4June to Aug 2009

07Cash flow for the period00Dividend / Redemption of shares

-82-40Change bank overdraft facility8247Cash flow after investments

-48-53Cash flow from investment activities130100Cash flow from continuing operations-35-95Changes in working capital

165195Cash flow from continuing operations before changes in working capital

2007/082008/09MSEK

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Sales – Q4June to Aug 2009

+11.21 226Net sales Q4 2008/09

+1.6Currency effect

+2.4Like For Like

+7.2New stores net

1 103Net sales Q4 2007/08

%MSEK

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117%Operating income

108%Costs

110%Gross profit

111%Sales

excl. one-offs 2008/09

Profitability drivers – Q4

June to Aug 2009

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• Net sales 4 866 (4 622) MSEK, an increase of 5.3 percent

• Operating profit 526 (651) MSEK, excl. one-offs a decrease of 15 percent

• Gross margin 61.1 (62.4) percent and operating margin 10.8 (14.1) percent.

• Net profit 315 (436) MSEK, equivalent to SEK 4.20 (5.81) per share.

• Cash flow from continuing operations MSEK 504 (730).

Financial highlights – Q1-Q4

September 2008 to August 2009

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436315Net profit-162-128Tax expense598443Profit before tax-80-84Financial expense271Financial income

651526Operating profit110Other operating income

-136-132Administrative expenses-2 106-2 315Selling expenses2 8822 973Gross profit

-1 740-1 893Cost of goods sold4 6224 866Net sales

2007/082008/09MSEK

Income statement – Q1-Q4

September 2008 to August 2009

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Cash flow– Q1-Q4September 2008 to August 2009

-28-11Cash flow for the period-825-338Dividend / Redemption of shares 75984Change bank overdraft facility38243Cash flow after investments

-692-261Cash flow from investment activities730504Cash flow from continuing operations43-87Changes in working capital

687591Cash flow from continuing operations before changes in working capital

2007/082008/09MSEK

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Sales – Q1-Q4 September 2008 to August 2009

+5.34 866Net sales 2008/09+1.8Currency effect-2.3Like For Like+5.8New net stores

4 622Net sales 2007/08%MSEK

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85%Operating income

110%Costs

103%Gross profit

105%Sales

excl. one-offs 2008/09

Profitability drivers – Q1-Q4September 2008 to August 2009

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• The consumers slightly more positive

• Growing unemployment

• A strong concept helps us in an unstable market

Present market situation

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0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

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Five years summary – Sales growth

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50,0%

52,0%

54,0%

56,0%

58,0%

60,0%

62,0%

64,0%

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Five years summary – Gross margin

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0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

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Five years summary – Operating marginexcl. one-offs

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0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

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Five years summary –Return on capital/employed

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Key conclusion

• Business concept –proven long term stability

• Increased market share• Strong gross margin• Expansion plans continues

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• 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.

Disclaimer

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Questions?