Europris — Earnings Release 2017

Nov 1, 2017

Europris ASA - Q3 2017 Results: Europris delivered continued growth and strong cashflow in the third quarter

Europris ASA - Q3 2017 Results: Europris delivered continued growth and strong cashflow in the third quarter

Fredrikstad, 1 November 2017 (OSE:EPR):

Group revenues for the third quarter of 2017 were NOK 1,278 million, up 5.0 per

cent from NOK 1,218 million in the third quarter of 2016. Like-for-like growth

came in at 3.2 per cent, better than the market benchmark of 1.9 per cent on a

comparable basis. Adjusted net profit for the third quarter amounted to NOK 65

million, down 6.1 per cent from NOK 69 million in the same period last year.

Gross margin in the third quarter was in line with the corresponding quarter

last year, and ended at 42.1 per cent. There was a slight increase in the share

of campaign sales in the quarter, mitigated by the expected positive effects

resulting from franchise takeovers in the last twelve months.

The group has seen an increase of 22 directly operated stores resulting from

franchise takeovers (15) and the opening of new stores (7) since the third

quarter last year. This has led to a larger fixed cost base for the group,

mainly driven by store personnel costs and rent. This has affected operating

expenses in the quarter compared to last year.

The group made significant progress in reducing excess inventory in-store on the

back of measures that were implemented following the second quarter. This

resulted in strong cashflow for the period.

Europris added one new store during the third quarter and concluded one

franchise takeover.

- We are happy to have beaten the market once again in the third quarter, albeit

with a like-for-like performance below our long term ambition, says CEO Pål

Wibe.

- Our relentless focus on continued category and concept development came to

bear through several new introductions in the third quarter. I am proud of the

team's achievements in this area, which remains key to securing continued long

term growth and profitability, Wibe added.

Please find the report and presentation for the third quarter 2017 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 246 stores throughout Norway. 201 stores are directly

operated by the company and 45 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.