7. 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are no an offer of securities for sale in the United States and are not
for publication or distribution to persons in the United States.
7
8. 3
Business highlights
272 stores end May 2007
32 new contracts signed;
2 in 06/07
17 in 07/08 3
41
132
3
13 forward
84 2
3
2
2 4
2
3
5
2 2 7
2
2 2
3
5
15 7
8
9. Financial highlights Q3
• Net sales MSEK 1,106 (1,029), an increase of
7.5 percent.
• Operating profit MSEK 132 (120), an increase of
10.0 percent.
• Gross margin 62.3 (61.9) percent and operating
margin 11.9 (11.7) percent.
• Profit after taxes MSEK 79 (73), equivalent SEK
1.05 (0.97) per share.
• Cash flow from operating activities MSEK 136 (83).
9
10. Income statement Q3
MSEK March-May 06/07 05/06
Net sales 1 106 1 029
Cost of goods sold -417 -392
Gross profit 689 637
Selling expenses -528 -477
Administrative expenses -32 -40
Administrative expenses 3 0
Operating profit 132 120
Financial income 11 0
Financial expense -32 -18
Profit before tax 111 102
Tax expense -32 -29
Net profit 79 73
10
11. Sales Q3
MSEK % • Strong Like For Like
Net sales Q3 2005/2006 1 029 performance.
Currency effect -1.5 • Increased marketing
New net stores +3.0 activities boost sales.
Like For Like growth +6.0
Net sales Q3 2006/2007 1 106 +7.5
11
13. Financial highlights 9m
• Net sales MSEK 3,383 (3,207), an increase of
5.5 percent.
• Operating profit MSEK 435 (357), an increase of
21.8 percent.
• Gross margin 60.8 (59.3) percent and operating
margin 12.9 (11.1) percent.
• Profit after taxes MSEK 540 (187), equivalent
SEK 7.20 (2.49) per share.
• Cash flow from operating activities MSEK 449 (364).
13
14. Income statement 9m
MSEK Sept-May 06/07 05/06
Net sales 3 383 3 207
Cost of goods sold -1 326 -1 306
Gross profit 2 057 1 901
Selling expenses -1 529 -1 432
Administrative expenses -109 -112
Other operative income 16 0
Operating profit 435 357
Financial income 23 3
Financial expense -81 -101
Profit before tax 377 259
Tax expense 163 -72
Net profit 540 187
14
15. Sales 9m
MSEK % • Like For Like excluding
Net sales 9m 2005/2006 3 207 cosmetics was +4.6
percent
Currency effect -1.7
New net stores +3.9
Like For Like growth +3.0
Net sales 9m 2006/2007 3 383 +5.5
15
17. Profitability drivers 9m
• Improved gross margin
06/07 05/06
Gross margin 60.8 59.3 • Unchanged cost as
percentage of sales
Selling expenses % of sales 45.2 44.7 – marketing
+ economies of scale
Admin expenses % of sales 3.2 3.5
Operating margin 12.9 11.1 • Improved operating
margin
17
18. Cash flow 9m
MSEK Sept-May 06/07 05/06
Cash flow from operations before working capital changes 464 294
Changes in working capital -15 70
Cash flow from operating activities 449 364
Cash flow investing activities -210 -181
Cash flow after investments 239 183
Change in revolving credit 60 84
Dividends -188 -169
Cash flow from other financing activities -66 -72
Net cash flow for the period 45 26
Cash and bank balances at beginning of period 83 83
Cash and bank balances at end of period 128 53
18
20. New store expansion program
The number of stores will increase by 20-25 per year
20
21. Key conclusions and outlook
• Continued sales success
• Stable gross margin
• Increased marketing efforts
Moving further ahead
• Continue marketing activities
• Maintain gross margin
• Increased store expansion program
• Investigate a potential new market
21
22. 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.
22
