Europris — Earnings Release 2016

Aug 11, 2016

Robust spring and summer sales momentum for Europris

Robust spring and summer sales momentum for Europris

Fredrikstad, 11 August 2016:

Total revenues for the second quarter 2016 were NOK 1,248 million, up 13 per

cent from NOK 1,100 million in the second quarter of 2015. Adjusted EBITDA rose

by NOK 23 million to NOK 191 million (NOK 168 million), corresponding to an

adjusted EBITDA margin of 15.3 per cent (15.3 per cent). Adjusted net profit for

the second quarter amounted to NOK 127 million, compared with NOK 74 million for

the corresponding quarter in 2015.

Spring and summer seasonal sales were strong during the period backed by a well

prepared store estate. Overall, like-for-like sales increased by 10.0 per cent

during the quarter, significantly outperforming the market benchmark by some 4.5

percentage points. Adjusting for the number of sales days (three additional days

in the second quarter 2016 vs. the same period last year), like-for-like growth

came in at 5.6 per cent.

Overall performance in the first half of the year was good, with group revenues

increasing 8.5 per cent to NOK 2,264 million (NOK 2,086 million). This

represents a like-for-like performance of 5.1 per cent vs. last year.

Europris added seven new stores during the first half, of which six opened in

the second quarter, bringing the total number of stores to 236. One additional

new store was included in the pipeline for the second half of the year raising

the expected new store count to twelve for 2016. One store will close in the

third quarter, as previously stated.

- We regained our top-line momentum in the second quarter. We outperformed the

general market on a like-for-like basis by successfully executing our plans for

the spring and summer seasonal sales period, says CEO Pål Wibe.

- The spring and summer selling period is our second most important seasonal

event, reflected in extensive preparations and planning throughout the Europris

organisation. We strengthened our position by opening six new stores in the

quarter, Wibe added.

Shortly after the end of the quarter, Europris announced the plans for a new

central warehouse. Although the new warehouse solution will not be ready before

2019, the decision on the new facility underlines Europris' commitment to cost

-efficient growth going forward.

Please find the report and presentation for the second quarter 2016 enclosed.

For further information, please contact:

CEO Pål Wibe, tel.: +47 99 11 98 91

CFO Espen Eldal, tel.: +47 48 29 24 24

About Europris:

Europris is Norway's largest discount variety retailer by sales. The company

offers its customers a broad assortment of quality owned brands and brand name

merchandise. The company's merchandise is sold through the Europris chain, which

consists of a network of 236 stores throughout Norway. 176 stores are directly

owned by the company and 60 operate as franchise stores. The company's

headquarters are located in Fredrikstad, Norway.

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.