GERRY WEBER International AG — Earnings Release 2016

Sep 14, 2016

9M Financial Figures 14 September 2016

/ 9 M 2 0 1 5 1 6	/ 9 M 2 0 1 5 1 6
C G E R R Y W E B E R o r e ( G S O O ) E R R Y W E B E R, T A I F U N, A M N	H A L L H U B E R
D i E U R 0 4 8 i l l i t 5 e c r e a s e n r e e n e s o m o n v u ( ) 9. 8 % -	S l i E U R 1 3 3 6 i l l i t a e s n c r e a s e o m o n ( d h f i i 2 0 7 % t t t + c o m p a r e o e r s n n e h f h i *) t t m o n s o e p r e v o u s y e a r
I i i 6 2 0 % t n c r e a s e n g r o s s m a r g n o ( / ) 9 M 2 0 1 4 1 8 9 % 5 5 :	G i f 6 1. 3 % r o s s m a r g n o ( / 9 M 2 0 1 4 1 6 2 8 % 5 fro 9 M ive ) : t m a p er sp ec
E B I T D A E U R 3 3 0 i l l i m o n = ( M E U R i l l i ) 9 5 8 4 p r e v. y e a r : m o n	E B I T D A E U R i l l i 7 7 m o n = E B I T D A i % 5 7 m a r g n :
9 d l 5 5 c o m p a n y -m a n a g e s a e s s p a c e s	3 1 2 d l c o m p a n y -m a n a g e s a e s s p a c e s
L i k f l i k R i l l % t 7 5 e- o r- e e a s a e s : -	L i k f l i k R i l l 4 7 % t e- o r- e e a s a e s : +
( G ( M k D l i N 2 0 1 t t a r e e e o p m e n n e r m a n o v y v. / / / % 6 % 2 % 1 + - -	/ / / i l J l 2 0 1 6 % 1 % 4 % 3 5 t 5 n + u u y : - - - / / % 2 % 3 % - -

Group Sales 9M 2015/16

9M 2015/16: Group sales totalled EUR 638.5 million (+1.3 % compared to 9M 2014/15)

• Increase is based on the contribution of HALLHUBER (first consolidation in Q2 2014/15). HALLHUBER stake in sales in 9M 2015/16: EUR 133.6 million (equals 20.9% of total Group sales)
• GERRY WEBER Core sales (excluding HALLHUBER) decreased in 9M by 9.8% mainly due to a sharp drop in wholesale sales (-21.5%) and decreased like-for-like Core-Retail sales (-7.5%).

SALES DEVELOMPMENT (in EUR million)

9M Group sales affected by:

• • Continuing adverse weather conditions and lower footfalls in cities and stores
• • Lower orders of our Wholesale partners due to continuing difficult market environment
• • Continuing difficult market environment for the whole fashion industry in Germany related to changing consumer behaviour

9M 2015/16: Retail revenues were down by 0.9% on 9M 2014/15 and amounted to EUR 313.5 million

• Compared to the previous year period like-for-like sales were down 7.5% whereas sales of the German textile market as a whole were down only by approx. 2-3%
• 40 out of the 103 store closings from the FIT4GROWTH programme were completed
• The 40 stores already closed plus additional 26 scheduled closings resulted in depreciation in the amount of EUR 7.5 million

9M 2015/16: Decrease in Wholesale sales of 21.5% to EUR 191.4 million

Decline in wholesale sales slowed down from -38% in Q1 to -17.3% in Q2 and began to stabilise at -0.6% in Q3

Reasons:

Continuing crisis of the German fashion market: Wholesalers had high inventory levels in the last seasons. As a result, order volumes have decreased.

WHOLESALE SALES PER QUARTER (in EUR million)

C / R i t ou n ry e g o n	C G W I o r e
G e rm a ny	5 5
Ru ia s s	9 5
M i d d le Ea t s	3 0
Ea Eu te s rn ro p e	2 1
Fr a nc e	2 0
Be Ne Lu x	1 1
Sw i la d tz e r n	2 5
S Ba l ic t ta te s	1 3
Po la d n	7
Au ia tr s	4
I ly ta	4
O he t rs	2 2
T l t o a	2 7 1

9M 2015/16: HALLHUBER sales in 9M 2015/16 amounted to EUR 133.6 million. An increase of 20.7 % on the first nine months of 2014/15*

Sales plus is not only due to newly opened stores (37 new stores in 9M) but also to strong development in like-for-like sales development (+ 4.7%): HALLHUBER pulled ahead of the German fashion market

HALLHUBER share in Group Sales was 20.9%; Online sales amounted to EUR 12.0 million, which represent 8.9% of total HALLHUBER sales and a sales growth of 50.6%

HALLHUBER SALES PER QUARTER (in EUR million)

HALLHUBER STORES BY STORE FORMAT

	9 M 5 / 2 0 1 1 6	2 0 1 4 / 1 5
H A L L H U B E R S M l b l t o n o a e o r e s	1 3 2	1 1 7
H A L L H U B E R C i S t o n c e s s o n o r e s	1 6 5	1 4 5
O H A L L H U B E R l t t e s u	1 5	1 3
T l t o a H A L L H U B E R	3 1 2	2 7 5

Development of Group Earnings 9M 2015/16

9M 2015/16: Group EBITDA declined to EUR 40.7 million. HALLHUBER contribution: EUR 7.7 million

In particular the decline in high-margin Wholesale revenues (-21.5%) as well as Core-Retail l-f-l of -7.5% resulted in decreased earnings compared to the previous year period. In addition, costs related to the realignment programme "FIT4GROWTH" had a negative impact on the earnings situation.

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Extraordinary costs affect profitability

Cost effects coming from the realignment programme "FIT4GROWTH" amounted to EUR 10.2 million in the first nine months of 2015/16

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E B I T D A d t r e p o r e	4 0. 7
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E B I T d t r e p o r e	0. 6
D i i / i i t t t e p r e c a o n a m o r z a o n	4 0. 1
T h f f l i e r e o r o m c o s n g s -	7. 5

EBIT adjusted 10.8

The 40 stores already closed plus additional 26 scheduled closings resulted in non-scheduled depreciation in the amount of EUR 7.5 million.

Although the general conditions remain challenging and the operating performance in the last months was not entirely satisfactory but, however, due to the strong Q4 in our business, we confirm the guidance provided on 26 February 2016 for the current financial year.

in E U R i l l ion m	G E R R Y W E B E R G R O U P / 2 0 1 4 1 5	G E R R Y W E B E R C o r e / 2 0 1 5 1 6	H A L L H U B E R / 2 0 1 5 1 6	G E R R Y W E B E R G R O U P T O T A L / 2 0 1 5 1 6
S l a e s	9 2 0. 8	1 0 3 0 7 7 -	1 8 0 1 9 0 -	8 9 0 9 2 0 -
E B I T D A ( d ) t r e p o r e	1 1 5. 8	4 5 5 0 -	1 5 2 0 -	6 0 0 7 -
E B I T ( d ) t r e p o r e	7 9. 3			1 0- 2 0

Thank you for your attention!

DISCLAIMER

This document contains forward-looking statements that reflect GERRY WEBER International AG management's current views with respect to future events. The words "anticipate ", "assume ", "believe", "estimate", "expect", "intend", "may", "plan", "project", "should", and similar expressions identify forward-looking statements. Such statements are not be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the actually achieved results by GERRY WEBER Group depend on a number of risks and uncertainties. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forwardlooking statement, which speaks only as of the date on which it is made.