Strong gross marginSept 2009 – May 2010

Håkan Westin, CFO

Christian W. Jansson CEO

Agenda

• Q3 2009/2010

• Q1-Q3 2009/2010

• Market situation

• Conclusions

• Questions

Highlights• Strong start in Q3

• Cold spring

• Strong gross margin

• Stable profit despite weak sales

TV

Campaigns during period

Stores May 2010• 344 stores

• 25 new stores so far this year

• 49 new stores under contract

95

153 56

39

Prague

Warsaw

Stockholm

HelsinkiOslo

1

Financial highlights, Q3March - May 2010

• Net sales MSEK 1 221 (1 206), an increase of 1,2 percent

• Operating profit MSEK 112 (109), an increase of 2,8 percent

• Gross margin 64,6 (60,4) percent and operating margin 9,2 (9,0) percent

Income statement, Q3March - May 2010

6265Net profit-24-23Tax expense8688Profit before tax

-23-24Financial expense00Financial income

109112Operating profit-32-38Administrative expenses

-587-639Selling expenses728789Gross profit

-478-432Cost of goods sold1 2061 221Net Sales

2008/092009/10MSEK

Sales, Q3March - May 2010

1,21 221Net sales Q3 2009/10

-2,3Currency effect

-1,8Like For Like

5,3New stores net

1 206Net sales Q3 2008/09%MSEK

Financial highlights, Q1-Q3Sept 2009 - May 2010

• Net sales MSEK 3 821 (3 640), an increase of 5,0 percent

• Operating profit MSEK 395 (350), anincrease of 12,8 percent

• Gross margin 62,5 (61,0) percent and operating margin 10,3 (9,6) percent

Income statement, Q1-Q3Sept 2009 - May 2010

209277Net profit-81-54Tax expense290331Profit before tax-61-65Financial expense

11Financial income350395Operating profit

-104-109Administrative expenses-1 766-1 884Selling expenses2 2202 388Gross profit

-1 420-1 433Cost of goods sold3 6403 821Net Sales

2008/092009/10MSEK

Cash flow, Q1-Q3Sept 2009 - May 2010

124-59Change bank overdraft facility

-18-5Cash flow for the period

-338-94Dividend / Redemption of shares

196148Cash flow after investments-208-137Cash flow from investment activities

404285Cash flow from continuingoperations

8-97Changes in working capital

396382Cash flow from continuingoperations before changes in working capital

2008/092009/10MSEK

Sales, Q1-Q3Sept 2009 - May 2010

5,03 821Net sales Q1-Q3 2009/10

-0,2Currency effect

-0,9Like For Like

6,1New stores net

3 640Net sales Q1-Q3 2008/09%MSEK

Sales breakdown, Q1-Q3Sept 2009 - May 2010

Localcurrency

Changein SEK2008/092009/10MSEK

23,7%18,8%207246Poland

5,0%3 6403 821Total---5Czech Republic

5,4%0,8%487491Finland

3,7%6,0%9941 054Norway

3,7%3,7%1 9522 025 Sweden

Present market situation

• General economy is improving

• Future development of the economy is uncertain

• Still high level of unemployment

• Increasing sourcing costs is a concern

• Private consumption should continue well

Five year summary – Sales growth

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

04/05 05/06 06/07 07/08 08/09 09/10 LTM

Five year summary – Gross margin

56,0%

57,0%

58,0%

59,0%

60,0%

61,0%

62,0%

63,0%

04/05 05/06 06/07 07/08 08/09 09/10 LTM

Five year summary – Operating marginexcl. one-offs

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

04/05 05/06 06/07 07/08 08/09 09/10 LTM

Five year summary –Return on capital/employed

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

04/05 05/06 06/07 07/08 08/09 09/10 LTM

Our road ahead

• Maintain strong gross margin

• Continued expansion of stores

• More focus on increased sales in existing stores

• Establish KappAhl on furthermarkets

DisclaimerThese 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.

Autumn 2010