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The Fourth Quarter and the Full Year Reportfor the period of 1 Sept 2005 to 31 Aug 2006

2 October 2006

Christian W. JanssonCEOHåkan WestinCFO

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Disclaimer

• These materials may not be copied, published, distributed or transmitted to third parties

• These materials may contain forward-looking statements. If so, such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read our earnings report and our most recent annual report for a better understanding of these risks and uncertainties.

• These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials and the information contained herein are no an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States.

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I Business Highlights

II Results Q4

III Results 2005/2006

IIII Key Conclusions

IV Recent Activities

Agenda

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Business HighlightsI

• 2005/2006 – the best year so far.– Improved gross margin. – Successful purchasing.– Good inventory control.

• Continued good general retail demand.

• Store expansion program on track.– Two new stores during Q4.– Total 20 new stores and two closures in 05/06.– Current network of 260 stores and 26 contracts

for new store openings.

Business Highlights

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II

Financial Highlights Q4II

• Sales increased by 2.3 percent to MSEK 1 010 (987).

• Gross margin improved to 63.3 (60.5) percent.

• Operating profit increased to MSEK 173 (119) of which MSEK 26 was an one-off item.

• Operating margin improved to 17.1 (12.1) percent.

• Profit after taxes was MSEK 116 (63), corresponding to SEK 1.54 (0.84) per share.

Results Q4

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Financial Highlights Q42004/2005 vs. 2005/2006

• FX impact was negative.

• Net new stores largest growth contributor with 5.3 percent.

• LFL -1.0 percent impacted by discontinued cosmetics sales in Norway MSEK 0 (20).

• LFL excluding cosmetics was +1.1 percent.

MSEK

IIResults Q4

1 010987

-753

500

600

700

800

900

1 000

1 100

Q404/05

FXeffect

Netnew

stores

LFLgrowth

Q405/06

SE

Km

-2,0% +5,3% -1,0% 2,3%

-20-10

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Profitability Drivers Q42004/2005 vs. 2005/2006

• Strong gross margin, even when excluding one-off item of MSEK 26.

• Selling expenses positively effected by reallocated pension costs of MSEK 14.

MSEK 05/06 04/05

Gross profit 639 597Gross margin 63,3% 60,5%

Selling expenses -431 -447% of sales 42,7% 45,3%

Admin expenses -35 -31% of sales 3,5% 3,1%

EBITDA 223 159EBITDA margin 22,1% 16,1%

Operating profit 173 119Operating margin 17,1% 12,1%

IIIIResults Q4

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Income Statement Q4IIIIResults Q4

MSEK 05/06 04/05Net sales 1 010 987Cost of goods sold -371 -390Gross profit 639 597

Selling expenses -431 -447Administrative expenses -35 -31Operating profit 173 119

Financial income 0 3Financial expense -12 -48Profit before tax 161 74

Tax expense -45 -11Net profit 116 63

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Financial HighlightsFull Year

• Sales increased by 6.9 percent to MSEK 4 217 (3 945).

• Gross margin improved to 60.2 (58.6) percent.

• Operating profit increased to MSEK 530 (403) of which MSEK 22 was an one-off item.

• Operating margin improved to 12.6 (10.2) percent.

• Profit after taxes was MSEK 302 (264), corresponding to SEK 4.02 (3.52) per share.

IIResults 2005/2006 III

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Financial Highlights Full Year2004/2005 vs. 2005/2006

MSEK

• Favourable FX impact, mainly due to strong NOK.

• Net new stores largest growth contributor with 5.0 percent.

• LFL -0.3 percent impacted by discontinued cosmetics sales in Norway MSEK 38 (97).

• LFL excluding cosmetics was +1.2 percent.

IIResults 2005/2006 III

3 945

4 217

87197 -7

2 000

2 400

2 800

3 200

3 600

4 000

4 400

4 800

FY04/05

FXeffect

Netnew

stores

LFLgrowth

FY05/06

SE

Km

+2,2% +5,0% -0,3% 6,9%

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Sales Breakdown Full Year2004/2005 vs. 2005/2006

GrowthMSEK 05/06 04/05 SEK Loc. cur.Sweden 2 365 2 267 4.3% 4.3%Norway 1 237 1 132 9.2% 3.7%Finland 473 429 10.3% 8.9%Poland 142 117 21.2% 11.2%Total 4 217 3 945 6.9%

Finland12(11)%

Sweden56(57)%

Poland3(3)%

Norway29(29)%

IIResults 2005/2006 III

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Profitability Drivers Full Year2004/2005 vs. 2005/2006

• Strong development of gross margin.

• Selling expenses in percent reduced due to economies of scale in increased number of stores.

MSEK 05/06 04/05

Gross profit 2 540 2 310Gross margin 60,2% 58,6%

Selling expenses -1 863 -1 781% of sales 44,2% 45,1%

Admin expenses -147 -126% of sales 3,5% 3,2%

EBITDA 707 555EBITDA margin 16,8% 14,1%

Operating profit 530 403Operating margin 12,6% 10,2%

IIResults 2005/2006 III

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Income Statement Full Year

MSEK 05/06 04/05Net sales 4 217 3 945Cost of goods sold -1 677 -1 635Gross profit 2 540 2 310

Selling expenses -1 863 -1 781Administrative expenses -147 -126Operating profit 530 403

Financial income 2 6Financial expense -113 -109Profit before tax 419 300

Tax expense -117 -36Net profit 302 264

IIResults 2005/2006 III

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Cash Flow

MSEK

Cash flow from operations before working capital changes 180 474Changes in working capital -63 -7Cash flow from operating activities 117 481

Cash flow investing activities -44 -225Cash flow after investments 73 256

Cash flow from financing activities -39 45

Change in revolving credit -70 -142Net cash flow for the period -36 -10

Cash and bank balances at beginning of period 109 83Cash and bank balances at end of period 73 73

Q4 Full Year05/06 05/06

Dividend 0 -169

IIResults 2005/2006 III

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Key Conclusions and OutlookKey Conclusions IIII

• Best year so far

• First class growth margin

• Excellent inventory control

• Weak sales

Focus going forward

• More emphasis on overall sales

• Continue new store expansion program

• Maintain gross margin

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Recent ActivityIVRecent Activities

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We don’t believe in selling a lifestyle.You have one already.

We don’t believe in expensive collections for an exclusive few.We believe in fashion that suits you.

We don’t believe in eternal youth, however we believe that people mature, grow wiser and even more beautiful.

Take it as a compliment.