1. KappAhl First Quarter Report
2008/09
September 1 to November 30, 2008
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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are not an offer of securities for sale in the United States and are not
for publication or distribution to persons in the United States.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. First Quarter Report
September 1 to November 30, 2008/09
Agenda
• Introduction
• Q1 2008
– Highlights
– Income Statement
– Net Sales
– Profitability drivers
– Sales breakdown Christian W. Jansson,
– Cash flow President & CEO
• Store expansion aligned to plan
• Future approach
• Key conclusions
Håkan Westin,
CFO
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4. First Quarter Report
September 1 to November 30, 2008/09
• Market under pressure
• Increased market shares
• Net sales MSEK 1 266 (1 247) Christian W. Jansson,
• Operating profit MSEK 176 (206) President & CEO
• Continuing strong gross margin
• Inventory in balance
Håkan Westin,
CFO
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6. Financial Highlights – Q1
September 1 to November 30, 2008
– Net sales 1 266 (1 247) MSEK, an increase of 1.5 percent
– Operating profit MSEK 176 (206), a decrease of 15 percent
– Gross margin 64.3 (63.9) percent and operating margin 13.9 (16.5)
percent
– Profit after taxes MSEK 113 (138), or SEK 1.51 (1.84) per share
– Cash flow from continuing operations MSEK 127 (196)
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7. Income Statement – Q1
MSEK Sept-Nov 2008/09 2007/08
Net sales 1266 1247
Cost of goods sold -452 -450
Gross profit 814 797
Selling expenses -605 -558
Administrative expenses -33 -33
Other operating income - -
Operating profit 176 206
Financial income 3 3
Financial expense -22 -18
Profit before tax 157 191
Tax expense -44 -53
Net profit 113 138
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8. Net Sales – Q1
Sept-Nov MSEK %
Net sales Q1 2007/08 1 247
Currency effect +0.1
New net stores +5.0
Like For Like -3.6
Net sales Q1 2008/09 1 266 +1.5
! Increasing growth from new stores
! End of period weaker than beginning
! Increased market shares
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9. Profitability drivers – Q1
2008/09
Sales 102%
Gross profit 102%
Costs 108%
Operating income 85%
! Sales increase not enough to offset cost increase
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11. Sales breakdown - Q1
September 1 to November 30, 2008/09
MSEK 2008/09 2007/08 Change
SEK Local
1,315 currency
679
Sweden 700 701 -0.1% -0.1%
278
Norway 340 357 -4.8% -2.7%
107
Finland 153 137 11.7% 5,1%
Polen 73 52 40.4% 27.0%
Totalt 1 267 1 247 1.5%
Poland
Finland
5% (4%)
12% (12%)
Sweden
Norway 55% (56%)
28% (28%)
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12. Cash flow – Q1
September 1 to November 30, 2008/09
MSEK 2008/09 2007/08
Cash flow from continuing operations 194 227
before changes in working capital
Changes in working capital -67 -31
Cash flow from operating activities 127 196
Cash flow from investment activities -104 -69
Cash flow from investing activities 23 127
Change bank overdraft facility -31 -75
Other from financial activities 0 -3
Cash flow from financing activities -31 -78
Cash flow for the period -8 49
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14. Store expansion
End November 2008;
306 stores and 53 new contracts,
of which 23 in Poland
• Present stores
• Opening stores
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15. Future approach
! Maintain gross margin with focus on gross profit
! Continuing store expansion program
! Establish additional markets
! Increased focus on cost containment
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16. Key conclusions
! Market under pressure
! Increased market shares
! Strong gross margin
! Contribution from new stores will
increase, the expansion aligned to plan
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17. You look great
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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18. Questions?
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