1Q3 2008/2009

Q3 2008/2009

June 17, 2009

Mikael Solberg, CEOGunnar Bergquist, CFO

Cecilia Lannebo, IR

2Q3 2008/2009

RNB focus for remaining 2008/2009

• Divesture of operations at NK

• Focus the business, i.e. optimize the store structure at JC – some divestures and close downs

• Further cost cuts

• Streamline remaining business

• 2008/2009 –actions done to support a solid business 2009/2010

3Q3 2008/2009

Status divesture of operations at NK• 25th of March 2009 -

communication of divestment of RNB´s operations at NK in Stockholm and Gothenburg

• 15 April 2009- approval at Extraordinary shareholders meeting

• Facts: Purchase price 440 MSEK Conditional upon approval of the

competition authorities Decrease of net debt – pro forma

per 31 May to 372,9 MSEK

• The Competition Authority (Konkurrensverket) has decided to implement a special investigation prior to decision. This investigation will be completed no later than 1 of September.

4Q3 2008/2009

Q3; March 2009-May 2009• Net sales amounted to 695.9 MSEK (776.9) a decrease of 10.4 percent

sales to franchisees are down by approx. 70 MSEK, explaining the lowered sales

currency effects have impacted sales marginally negative -2.3 percent in like-for-like in own stores HUI in the quarter -1,9 percent in like-for-like

• Operating loss at -36.1 MSEK (23.8)

Operating result includes 17,7 MSEK in write-down of liabilities in Stores

Approx. 40 MSEK in negative impact from lowered sales to franchise and higher purchasing costs from unfavorable currency

• Unrealized exchange-rate losses on forward contracts amounted to SEK 12.3 M during the quarter.

• Loss after tax -64.2 MSEK (5.8)• Cash flow from current operations for the period at 17.8 MSEK (61.7)

5Q3 2008/2009

Key issues• JC

Restructuring Store network Franchisees

• Balance sheet Capital tied up Inventories Liabilities

• Department Stores Steen & Ström – Fourth

floor, “Sporten” closed Illum – agreement to close

3 out of 5 stores signed• Currency• Cost cutting• Market development

6Q3 2008/2009

Swedish market development-The Swedish market during 2009 has improved and stabilized-RNB has due to internal difficulties with JC and focus on liquidity had a more volatile development

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

Q1

20

07

/20

08

Q2

20

07

/20

08

Q3

20

07

/20

08

Q4

20

07

/20

08

Q1

20

08

/20

09

Q2

20

08

/20

09

Q3

20

08

/20

09

(%)

RNB like-for-like HUI like-for-like

Autumn weaknessA hit in consumer confidence

7Q3 2008/2009

Polarn O. Pyret

• Sales Q3 sales 96.3 MSEK (86.0) Growth of 12 percent +4.7 percent like-for-like

• Operating profit 3.6 MSEK (5.8) Higher cost of purchasing

from unfavorable currency effects of approx. 5 MSEK

• Operating profit margin 3.7 percent (6.7)

• Net new store openings, +4• E-commerce in Sweden and the

US, launch mid-March

8Q3 2008/2009

• Sales – Q3 sales 354.8 MSEK (441.0) – Decrease of 19,5 percent– Low discounting at JC in the quarter have

hurt top-line but benefited gross margin– -7.0 percent like-for-like own stores

• Operating loss– -26.5 MSEK (29.9)

Including -52,7 MSEK from:– Write-down of liabilities of 17,7 MSEK– Lowered sales to franchisees and higher

purchasing costs due to unfavorable currency effects of 35 MSEK

• JC: -29,0 MSEK• Brothers and Sisters:

2,5 MSEK• New store openings in the quarter

– Net +/- 0 • Brothers +2• Sisters: +2• JC: -4

Stores

9Q3 2008/2009

JC gross profit development in Sweden Internal brandsAccumulated gross profit in Sweden between

1 of January 2009 to 31 of May 2009 is up by 63%.

Gross profit

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Week

2009 2008

10Q3 2008/2009

JC gross profit in Sweden in %Internal brands

Gross margin (%)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Week

2009 2008

11Q3 2008/2009

Departments & Stores

• Sales Q3 sales 240.2 MSEK

(252.7) Decrease of 4.9 percent -1.5 percent like-for-like

• Operating loss -3.6 MSEK (-6.1)

• Illum -7.7 MSEK (-8.3)

12Q3 2008/2009

Going forward

• Focus on business… JC turnaround

• store structure• further cost cuttings

Brothers and Sisters• consolidation

Departments & Stores• divesture

Polarn O. Pyret• continued international roll-out

• …and financials Capital structure – further

lowered debts and capital tied up

Lowered costs – organization, store network and international exposure

13Q3 2008/2009

Q&A’s

14Q3 2008/2009

Consolidated income statement (MSEK)

Net turnoverOperating resultFinancial itemsResult after fin. ItemsResult for the period

3MMar 09-May

09

3MMar 08-May

08

9MSep 08-May

09

9MSep 07-May

08

695.9 776.9 2,393.9 2 554.7

-36.1 23.8 -584.8 52,2

-18.8 -17.8 -45.9 -39.7

-54.9 6.0 -630.7 12.5

-64.2 5,8 -619.8 15.6

15Q3 2008/2009

Consolidated balance sheet (MSEK)

Intangible assetsTangible assetsFinancial assetsInventoriesOther current assetsTotal assets

EquityLong-term liabilitiesShort-term liabilitiesTotal equity and liabilities

May 31, 2009

May 31, 2008 Aug 31, 2008

1,469.1 1,885.9 1,966.8

176.2 281.3 215.2

0 17.5 11.4

620.2 616.0 672.0

316.3 371.0 462.6

2,581.8 3,171.8 3,328.0

1,117.7 1,495.8 1,404.1

632.9 696.6 717.3

831.2 979.4 1,206.6

2,581.8 3,171.8 3,328.0

16Q3 2008/2009

Key figures

Gross profit margin (%)Operating margin (%)Net profit margin (%)Equity (MSEK)Equity ratio (%)

Average number of employeesNumber of stores

9MSep 08-May

09

9MSep 07-May

08

12 MSep 07-Aug

08

44.1 45.0 43.3

nm 2.0 0.1

nm 0.6 nm

1,117.7 1,495.8 1,401.1

44.1 47.2 42.2

1,523 1,511 1,505

490 475 475