XXL

Earnings Release • Feb 25, 2015

Fourth quarter and full year results 2014 - Further growth and margin improvements

Fourth quarter and full year results 2014 - Further growth and margin improvements

XXL ASA delivered a growth of 30 per cent for the

year 2014, driven by new store openings, E-commerce

and like-for-like growth. The establishment in

Finland is a success with four stores delivering NOK

292 million in revenues, where the first store

opened in April 2014. XXL are proud of the expansion

into Finland, producing positive EBITDA in the

fourth quarter 2014.

The fourth quarter showed a revenue growth of 26 per

cent for the Group compared to the same period last

year, and the EBITDA-margin* improved by 1.1

percentage points to 13.5 per cent. This improvement

was driven by both better gross margin and lower

cost percentage, and is achieved despite the

establishment in Finland with lower margins.

The Board of Directors proposes a dividend of NOK

2.00 per share for 2014.

Highlights Q4

- Total revenues of NOK 1 520 million (NOK 1 205

million), up 26 per cent

- E-commerce growth of 88 per cent

- Gross margin of 42.5 per cent, improvement in all

markets

- EBITDA before one off cost increased by 38 per

cent to NOK 206 million

- Opened four new stores

Outlook

Total operating revenue in January 2015 grew by 22.2

per cent, to NOK 503 million. The start of the year

was impacted by the late arrival of winter in Norway

and lack of snow in Sweden and Finland.

XXL have signed 7 new lease agreements for new store

openings in 2015, and aims for 8-9 new stores in

total. The Group expects the new store openings to

be back-end loaded. The first new store is expected

to be opened during spring in Finland.

The main share of the growth will be outside Norway.

Finland is still under establishment and it will be

an achievement to deliver positive EBITDA in 2015.

Sweden had a good improvement in the margin in 2014

due to the new central warehouse. Margin improvement

going forward will not be in the same pace as in

The Group maintains the following long term

objectives (as compared to 2013 figures):

- Like-for-like growth of mid-single digits over time

- E-commerce share of total revenues of low double

digits

- Gross margins to be stable. For Norway maintained

at the same level, increasing to high 30's in Sweden

and Finland

- EBITDA-margin stable as a result of stable gross

margins and operating expenses. In Norway at low

20's, in Sweden low double digits and in Finland

high single digits.

- Reduction in effective tax rate targeted at mid

20's (already achieved).

Share option program and restricted share units

The Board of Directors has approved a share option

program for the management team and key employees,

as earlier stated in the IPO prospectus. The program

has an estimated cost of around NOK 11 million. The

strike price will be equal to the volume weighted

average market price the next five trading days,

starting today 25 February 2015 and ending 3 March

2015. The grant date will be 3 March 2015 and the

options are exercisable after three years, subject

to key performance criteria (EBITDA-target) being

met and subject to the holder at the time of

exercise is employed in XXL.

Further, the Board of Directors approved a program

of restricted share units for around 100 employees.

The grant will be related to individual bonus

agreements for each employee. The allocation price

will be equal to the volume weighted average market

price the next five trading days, starting today 25

February 2015 and ending 3 March 2015. The shares

will vest after three years. The total amount of

restricted share units will be available and

disclosed soon.

For further information please find attached the

quarterly report and the presentation material.

The results will be presented at 08:00 CET by CEO

Fredrik Steenbuch and CFO Krister Pedersen. The

presentation will take place at our headquarters in

Oslo, Strømsveien 245, Alna Senter (entrance on the

right side of Maxbo). The presentation will be held

in English and will be webcasted at www.xxlasa.com.

You may also follow the presentation live by

telephone. Dial-in details - +47 21 56 33 18(Norway)

and +44(0) 20 3003 2666 (International), passcode -

XXL.

For further queries, please contact:

Tolle O. R. Grøterud, Head of Investor Relations,

XXL ASA

Tel: +47 90 27 29 59

E-mail: ir@xxlasa.com

This information is subject of the disclosure

requirements pursuant to section 5-12 of the

Norwegian Securities Trading Act

About XXL ASA

XXL is a leading sports retailer with stores and e-

commerce in Norway, Sweden and Finland. It is the

fastest growing among the major sports retailers in

the Nordic. XXL pursues a broad customer appeal,

offering a one stop shop experience with a wide

range of products for sports, hunting, skiing,

biking and other outdoor activities. XXL's concept

is to have the largest stores with the lowest prices

and the widest assortment of products, focusing on

branded goods.