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ADLER
ADLER Modemaumlrkte AG
Company Presentation
November 2014
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ADLER 2 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
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3 ADLER
Target group Menwomen 45+
Positioning Value segment lower mid-price but above discount segment
Distribution channels 171 retail stores as well as Online Shop
Brands ~ 90 own brands ~10 third party brands eg Tom Tailor sOliver Street One or Triumph
Product Portfolio Women 50 Men 26 Lingerie 10 Childrens wear 2 Others 12
Countries Germany 82 Austria 15 Luxembourg 3 Switzerland lt 1
Financials 2013 Sales euro 5286m EBITDA 429m EBITDA margin 81 EPS euro 105 Dividend euro 045
Management board Lothar Schaumlfer CEO Karsten Odemann CFO
As of December 31st 2013 Including accessories lingerie Trachten ADLER Club home textile shoes and concession
Strategy
Target group
Positioning
Distribution channels
Brands
Product Portfolio
Countries
Financials 2013
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4 ADLER
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Historical development of ADLER GmbH and AG
4
2003 ndash 2004 Profitable company
EBITDA margin-level of ~ 10
A shape collection with comfortable fits for customers 45+
years still successful despite sales decrease
2005 ndash 2008 Unsuccessful rejuvenation
Strategy was changed to lower prices to raise volume
Change of product offering to V shape for young and
fashionable customers age 30+ years
As a result sales dropped from over euro 600 million to euro 410
million in 2009
Until 2008 ADLER belonged to METRO Group
2009 ndash 2011 Turnaround and growth
New management changed the strategy back to
- comfortable A shape fittings
- regaining pricing power by raising price level
Expansion of stores
Ongoing operational improvement
Since 2012 Focus on profitability
Sales Historical development
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-8
-6
-4
-2
0
2
4
6
8
10
12
14
-40
-20
0
20
40
60
80
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EBITDA and EBITDA margin
eurom
eurom
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777777
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5 ADLER
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The ADLER Share
ISIN DE000A1H8MU2
Stock symbol A1H8MU
First time listing June 22 2011
Issue price euro1000
Class of shares No-par value bearer shares
Transferred shares 10812533
Number of Shares 18510000
Subscribed capital euro18510000
SampE Kapital GmbH Steilmann Group amp Equinox
528
Free Float
422
including
Taaleritehdas
31
Management Board
04
As of October 1 2014
Share Data Shareholder Structure
Gerhard Woumlhrl
50
2260122
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6 ADLER
Competitive Advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID
bull Shift to direct sourcing
bull hellip
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7 ADLER
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Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
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8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
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9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
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10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
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11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
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12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
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ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
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ADLER 14 ADLER
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Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
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15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
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ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
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17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
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ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
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20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
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21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
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22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
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23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
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24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
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25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
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26 ADLER
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in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
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28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
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29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
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ADLER 2 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
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3 ADLER
Target group Menwomen 45+
Positioning Value segment lower mid-price but above discount segment
Distribution channels 171 retail stores as well as Online Shop
Brands ~ 90 own brands ~10 third party brands eg Tom Tailor sOliver Street One or Triumph
Product Portfolio Women 50 Men 26 Lingerie 10 Childrens wear 2 Others 12
Countries Germany 82 Austria 15 Luxembourg 3 Switzerland lt 1
Financials 2013 Sales euro 5286m EBITDA 429m EBITDA margin 81 EPS euro 105 Dividend euro 045
Management board Lothar Schaumlfer CEO Karsten Odemann CFO
As of December 31st 2013 Including accessories lingerie Trachten ADLER Club home textile shoes and concession
Strategy
Target group
Positioning
Distribution channels
Brands
Product Portfolio
Countries
Financials 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
4 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Historical development of ADLER GmbH and AG
4
2003 ndash 2004 Profitable company
EBITDA margin-level of ~ 10
A shape collection with comfortable fits for customers 45+
years still successful despite sales decrease
2005 ndash 2008 Unsuccessful rejuvenation
Strategy was changed to lower prices to raise volume
Change of product offering to V shape for young and
fashionable customers age 30+ years
As a result sales dropped from over euro 600 million to euro 410
million in 2009
Until 2008 ADLER belonged to METRO Group
2009 ndash 2011 Turnaround and growth
New management changed the strategy back to
- comfortable A shape fittings
- regaining pricing power by raising price level
Expansion of stores
Ongoing operational improvement
Since 2012 Focus on profitability
Sales Historical development
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-8
-6
-4
-2
0
2
4
6
8
10
12
14
-40
-20
0
20
40
60
80
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EBITDA and EBITDA margin
eurom
eurom
2260122
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14711108
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777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
The ADLER Share
ISIN DE000A1H8MU2
Stock symbol A1H8MU
First time listing June 22 2011
Issue price euro1000
Class of shares No-par value bearer shares
Transferred shares 10812533
Number of Shares 18510000
Subscribed capital euro18510000
SampE Kapital GmbH Steilmann Group amp Equinox
528
Free Float
422
including
Taaleritehdas
31
Management Board
04
As of October 1 2014
Share Data Shareholder Structure
Gerhard Woumlhrl
50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Competitive Advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID
bull Shift to direct sourcing
bull hellip
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
3 ADLER
Target group Menwomen 45+
Positioning Value segment lower mid-price but above discount segment
Distribution channels 171 retail stores as well as Online Shop
Brands ~ 90 own brands ~10 third party brands eg Tom Tailor sOliver Street One or Triumph
Product Portfolio Women 50 Men 26 Lingerie 10 Childrens wear 2 Others 12
Countries Germany 82 Austria 15 Luxembourg 3 Switzerland lt 1
Financials 2013 Sales euro 5286m EBITDA 429m EBITDA margin 81 EPS euro 105 Dividend euro 045
Management board Lothar Schaumlfer CEO Karsten Odemann CFO
As of December 31st 2013 Including accessories lingerie Trachten ADLER Club home textile shoes and concession
Strategy
Target group
Positioning
Distribution channels
Brands
Product Portfolio
Countries
Financials 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
4 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Historical development of ADLER GmbH and AG
4
2003 ndash 2004 Profitable company
EBITDA margin-level of ~ 10
A shape collection with comfortable fits for customers 45+
years still successful despite sales decrease
2005 ndash 2008 Unsuccessful rejuvenation
Strategy was changed to lower prices to raise volume
Change of product offering to V shape for young and
fashionable customers age 30+ years
As a result sales dropped from over euro 600 million to euro 410
million in 2009
Until 2008 ADLER belonged to METRO Group
2009 ndash 2011 Turnaround and growth
New management changed the strategy back to
- comfortable A shape fittings
- regaining pricing power by raising price level
Expansion of stores
Ongoing operational improvement
Since 2012 Focus on profitability
Sales Historical development
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-8
-6
-4
-2
0
2
4
6
8
10
12
14
-40
-20
0
20
40
60
80
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EBITDA and EBITDA margin
eurom
eurom
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
The ADLER Share
ISIN DE000A1H8MU2
Stock symbol A1H8MU
First time listing June 22 2011
Issue price euro1000
Class of shares No-par value bearer shares
Transferred shares 10812533
Number of Shares 18510000
Subscribed capital euro18510000
SampE Kapital GmbH Steilmann Group amp Equinox
528
Free Float
422
including
Taaleritehdas
31
Management Board
04
As of October 1 2014
Share Data Shareholder Structure
Gerhard Woumlhrl
50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Competitive Advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID
bull Shift to direct sourcing
bull hellip
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
4 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Historical development of ADLER GmbH and AG
4
2003 ndash 2004 Profitable company
EBITDA margin-level of ~ 10
A shape collection with comfortable fits for customers 45+
years still successful despite sales decrease
2005 ndash 2008 Unsuccessful rejuvenation
Strategy was changed to lower prices to raise volume
Change of product offering to V shape for young and
fashionable customers age 30+ years
As a result sales dropped from over euro 600 million to euro 410
million in 2009
Until 2008 ADLER belonged to METRO Group
2009 ndash 2011 Turnaround and growth
New management changed the strategy back to
- comfortable A shape fittings
- regaining pricing power by raising price level
Expansion of stores
Ongoing operational improvement
Since 2012 Focus on profitability
Sales Historical development
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-8
-6
-4
-2
0
2
4
6
8
10
12
14
-40
-20
0
20
40
60
80
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EBITDA and EBITDA margin
eurom
eurom
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
The ADLER Share
ISIN DE000A1H8MU2
Stock symbol A1H8MU
First time listing June 22 2011
Issue price euro1000
Class of shares No-par value bearer shares
Transferred shares 10812533
Number of Shares 18510000
Subscribed capital euro18510000
SampE Kapital GmbH Steilmann Group amp Equinox
528
Free Float
422
including
Taaleritehdas
31
Management Board
04
As of October 1 2014
Share Data Shareholder Structure
Gerhard Woumlhrl
50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Competitive Advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID
bull Shift to direct sourcing
bull hellip
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
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777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
The ADLER Share
ISIN DE000A1H8MU2
Stock symbol A1H8MU
First time listing June 22 2011
Issue price euro1000
Class of shares No-par value bearer shares
Transferred shares 10812533
Number of Shares 18510000
Subscribed capital euro18510000
SampE Kapital GmbH Steilmann Group amp Equinox
528
Free Float
422
including
Taaleritehdas
31
Management Board
04
As of October 1 2014
Share Data Shareholder Structure
Gerhard Woumlhrl
50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Competitive Advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID
bull Shift to direct sourcing
bull hellip
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Competitive Advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID
bull Shift to direct sourcing
bull hellip
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique Brand Positioning With Strong Target Group Focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020 1)
1) Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Unique Brand Position With Strong Target Group Focus 45+
Outstanding value-for-money
perception
Fashion follower approach ndash
conservative fashion grade
management of market proven
styles minimizing fashion risk
Excellently positioned in the
attractive fast growing value
fashion segment and above the
vulnerable discount segment
8
Unique Brand Position Brand Positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Broad Customer Data Base
1) est ADLER customers at data generation 2) Customers shopped with ADLER customer card in respective period 3) Based on company estimation 4) According to Finanztest (2010)
Ranking ndash Mono-Loyalty Card Schemes in Germany
48
40
30
30
26
24
Card customers in million
IKEA Family Card
ADLER Customer Card
PampC Customer Card
Rewe Card
Toys lsquoRrsquo Us Starcard
Yves Rocher
Mo
no
-par
tner
pro
gram
mes
Source Finanztest (2010)
Active ADLER Customer Card members 63 million
Best in class and 2nd largest ADLER customer card classified best out of 24 loyalty card schemes 4)
Focused and efficient marketing opportunities loyalty card scheme allows exact market segmentation and a targeted marketing approach
High profitability of ADLER card customers high acceptance of ADLER customer card enables steering of customer frequency and cash flows
ADLER Customer Card Members2)
Total number of active ADLER customers including 63 million active customer card members
Active customers with and without customer card
ADLER card customers shopped between 2010 and 2012 for the last time
Previous customers with customer card
Total amount of customers shopped in ADLER stores in 2013
Current customers
Customers shopped with ADLER Customer Card generated 91 of revenues in 2013
With ADLER Customer Card
Customers shopped without ADLER Customer Card
Without ADLER customer card
Customers in million Description Type of customer
12 3)
36
48
27
75
1)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Strong Brand Awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
140
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
Germany 1948 103 104 107 132 139 143
Austria 1987 16 17 26 28 27 25
Luxembourg 1981 2 2 2 2 2 2
Switzerland 2012 1 1
Total Group 121 123 135 162 169 171
Organic openings 6 3 8 13 11 5
Acquired (MampP) 7 18 5 1
Closingssold 9 1 3 3 9 4
Net change -3 2 12 28 7 2
Further Potential for Store Network Expansion
Number of ADLER Stores Per Country
Adjusted growth strategy launched in second half of 2012
Ongoing analysis of existing store network performance to increase profitability
ADLERrsquos Regional Presence And Expansion Potential
Existing ADLER stores
Potential new ADLER stores in AT and DE
excl online shop
5 to 10 openings pa going forward
Focus on larger scale formats like Retail Park and Stand Alone stores with selling areas of gt 1600 sqm
Focus on existing markets
Expansion Targets
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
12 ADLER
Potential Still Far from being Exhausted
Sales and profitability
improvement
Acquisition of MomampPop Shops
Refurbishments
Store openings
New image and marketing campaign
Improvement in sourcing
RFID
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 13 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 14 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong Outperformance in a Challenging Environment
ADLER Like for Like Growth vs German Textile Sector
TW-Testclub
Weak summer sale months and warm September burden
sales and margins of German textile retailers
ADLER like for like sales +26 well above market average
of -4 in Q3 2014
Increasing profitability and margins proofs the success of
ADLERlsquos strategy in a challenging environment
ADLER Monthly Like for Like Comparison
-41
119 149
22 23
-65 -43
101
26 2 5
8
-5
2
-8 -7
7
-9
Jan Feb Mrz Apr Mai Jun July Aug Sept
ADLER LfL German Apparel Sector
-09
75 70
-43
101
26
July Aug Sept
2013 2014
ADLER Stands Strong in a Challenging Market
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Course for Further Growth Set
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2008 2009 2010 2011 2012 2013
9m
2014
Germany 1948 103 104 107 132 139 143 143
Austria 1987 16 17 26 28 27 25 22
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1
Total Group 121 123 135 162 169 171 168
Organic openings 6 3 8 13 11 5 2
Acquired (MampP) 7 18 5 1 0
Closingssold 9 1 3 3 9 4 5
Net change -3 2 12 28 7 2 -3
excl online shop
Store openings 2 ndash Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)
Openings in Q4 Henstedt-Ulzburg (October)
Store closures 5 - Huerth Graz-Liebenau (AT) Innsbruck (AT) Duumlsseldorf-Bilk and Fuumlrstenfeld (AT)
16 refurbishments completed in 9m 2014
Highlights 9m 2014
Portfolio Consolidation Concluded ndash Setting Course for Strong Growth
Portfolio consolidation 2014 concluded
Major loss-making stores closed in 20132014 supporting present and future profitability
Strong increase in store base to be seen as of Q1-2015
Up to 15 refurbishments pa in 20152016
Expansion and refurbishments to further support sales short to mid-term
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 16 ADLER
Successful New Image and Marketing Campaign
Congratulations on your new TV campaign ADLER was not a highly sympathetic brand at least until now
Very good spot Improves your image by pulling you out of the ldquograndma cornerrdquo
ADLER Germany KW 8 ndash 10 without new campaign KW 11 start of new campaign
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
17 ADLER
ADLER advances its multi-channel concept
ADLER Expands Online Sales Organization
Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce
Significant increase in sales by
new SIS concept for plus sizes
offering same-day delivery
Break-even of e-shop expected in 2017
Click amp Collect activities strengthened further by new measures to support footfall and sales in the brick amp mortar business
Short CV Ralf Reckmann
1988 ndash 1993 Project Director Karstadt Corporate Planning Department
1993 ndash 2000 Head Buyer and Head of Sales amp Marketing for Karstadt Sports as Category Manager Golf
2000 ndash 2002 Board of karstadtsportcom AG
2001 ndash 2002 Managing Director of Karstadt Warenhandels mbhrdquo
2003 ndash 2006 Director New Business bdquoKarstadt Quelle Groupldquo
2006 ndash 2007 Self- employed as consultant e g for Deutsche Post AG Karstadt AG Golf House and others Interim Management and Business Development for Buy VIP
2007 ndash 2009 Sales and Marketing Director Europe Golfino AG
2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers eg Haumlfele Vorwerk Tengelmann Garant Marketing GmbH Adler Modemaumlrkte AG Alno AG arvato Netrada PampC Nord)
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 18 ADLER
RFID ndash Radio-Frequency Identification
Optimization of the inventory management
Improvement of sales by higher inventory turn rates and NOS
availability ndash avoiding out-of-shelf situations
Avoiding redundant work steps and lower the risk of incorrect
deliveries
Substitute for additional security tag
Increasing customer satisfaction
Implementation of RFID technology and ndash tags in all ADLER stores
finalised in April 2014 ndash total implementation cost of ~EUR8m
from 2012 to 2014
Increase in like for like sales of up to 25 by eliminating out of
stock risk and improving the sales process
Further optimization of gross margin due to better sell through
rates and decrease in inventory differences
EBITDA improvement of up to euro45m
ROI expected as of 2015
Status
Objective
Expected Effect on Financials
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
19 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
Ongoing Increase in Sales and Profitability
Positive sales trend unbeaten - +24 in Q3 2014
Increase in EBITDA and EBITDA margin for the 6th quarter
in a row - +euro31m to euro54m
Positive net profit in Q3 for the first time in company
history
Achieving ongoing growth in sales and earnings by
Customer satisfaction (collections service
marketing)
Improved inventory management
Cost control
Closure of loss-making stores
Ongoing Positive Trend in Sales and Earnings
Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row
in meuro
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
-66
112
01
311
-77
84
02
353
-86
179
23
320
-56
185
54
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 46 CAGR11-14
74
CAGR10-13 44
Positive Net Profit in Q3 2014
-44
-17
0005
2012 2013 2014
2012 2013 2014
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
Q3 and 9m 2014
Outperformance continued
Increase in sales by 24 to euro1220m
Like for like sales up 26
Withstanding challenging market environment and strong previous year level
Apart from July like for like increase predominantely volume driven
ADLER quarterly like for like sales trend
Q3 2014
9m 2014
Increase in group sales by 30 to EUR3779m in line with like for like sales
1220
1191
Q3 - 14Q3 - 13
in meuro
+ 24 3779
3670
9m - 20149m - 2013
+ 30
-53
113
46 40
83
-05
26 30
Q1 Q2 Q3 9m
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
Stable Gross Profit Margin in Challenging Quarter
Gross profit margin of 530
Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July
Q3 and 9m 2014 gross profit margin
Gross profit margin trend
Q3 2014
9m 2014
Positive trend in gross profit margin unbroken
Gross profit margin increase of 50 bps to 542
530 531
Q3 - 14Q3 - 13
542 537
9m - 20149m - 2013
+ 50bps
485 530 495 533
466 530 497
592
495 571
531 599
515 574
530
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
EBITDA Supported by Positive Trends in Cost Structure
EBITDA increase by euro31m to euro54m up gt130
EBITDA margin up 250bps to 44
Q3 and 9m 2014 EBITDA
Q3 and 9m 2014 EBITDA margin
Q3 2014
+
Sales improvement in existing and new stores
Positive trend in main cost drivers
9m 2014
EBITDA increase by euro67m to euro183m
EBITDA margin up 160bps to 48
54
23
Q3 - 14Q3 - 13
in meuro + euro 31m 183
116
9m - 20149m - 2013
+ euro 67m
44
19
Q3 - 14Q3 - 13
+ 250bps 48
32
9m - 20149m - 2013
+ 160bps
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
24 ADLER
Cash Flow After 9M 2014
Cash Flow
Free cash flow of - euro05m slightly negative
CF from operating activities of euro94m decrease by euro81m due to increase in inventories in autumnwinter season
Cash outflow from investing activities of euro99m increase by euro13m due to higher refurbishment activities
Cash outflow from financing activities of euro74m decrease by euro72m due to placement of treasury shares
Increase in cash position by euro103m from euro364m 9m 2013 to EUR467m 9m 2014
in meuro
99
74
467
94
545
Cash Position 01012014 CF from OperatingActivities
CF from Investing Activities CF from Financing Activities Cash Position 30092014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Strong and Healthy Balance Sheet Prepared for Expansion
Improvement in Net Debt position of euro89m
Cash and cash equivalents up euro103m y-o-y to euro467m
Balance sheet clean of bank debt
Net Debt
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
- euro89m
Ongoing Improvement in Equity
940 920 714
380 403
323
Sept 30 2014Dec 31 2013Sept 30 2013
Equity Equity ratio
Ongoing increase in equity to euro940m after 9m 2014
Equity improved by euro226m y-o-y and euro20m ytd
Sold equity ratio further strengthened from 323 9m 2013 to 380 9m 2014
274
363
Sept 30 2014Sept 30 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
in meuro
Increase in Inventories due to Summer Sale and Early Delivery
Inventories
Operating Working Capital
in meuro
Trade Payables
Working Capital increase of euro55m driven by inventories
Solid WC ratio of 86 after 9m 2014 compared to 82 December 2013
Insignificant amount in trade receivables of lt euro 01m
in meuro
Increase in inventories by euro65m due to unsatisfying summer sale and early inventories in autumnwinter season
Trade payables up euro11m
in meuro
977 912
+ 71 514 503
+ 22
based on LTM
501 426 409 434 429 405
464
Q1 H1 9m FY
2013 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
27 ADLER
1
Highlights 9m 2014 2
3 Financials 9m 2014
Strategic Overview
4 Outlook 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Outlook 2014 Unchanged
Guidance
Sales Low single digit
EBITDA In line with sales growth
Expansion 5 ndash 10 new stores
Additional store closures
Operational Outlook
Gross profit margin
Personnel expenses Wage increase after renewal of collective
bargain agreement
Slight increase
Transport and logistics costs Slight increase
Revitalization of brand image Implementation of RFID technology in all stores
Up to 20 refurbishments Acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Financial Calender amp Contact Details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Kepler Cheuvreux German Corporate Conference Frankfurt
January 21st 2015
Annual Report 2014
March 19th 2015
Report on the first quarter of 2015
May 12th 2015
Annual General Meeting
May 13th 2015
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
German Equity Forum 2014 Frankfurt
November 25th- 26th 2014
