BoConcept Holding A/S realises better result and cash flow than expected in the 2009/2010 financial year

• Revenue was DKK 910.2 million in the 2009/2010 financial year, which is 9.4%
lower than for the previous year. Although revenue was affected by the
challenging sales conditions prevailing worldwide, it was in line with the most
recently published forecast, cf. announcement 1/2010 dated 3 March 2010 

• Same-store-sales for the full 2009/2010 financial year fell by 7% in terms of
invoicing and rose by 1% in terms of order intake. As predicted, franchise
chain same-store-sales improved significantly during the financial year and
increased by 11% in terms of invoicing in the fourth quarter of the financial
year 2009/2010 and 19% in terms of order intake 

• A total of 21 new brand stores opened and 30 closed in the 2009/2010
financial year. New stores were opened both in existing principal markets and
in new growth markets 

• Group revenue rose in the 2009/2010 financial year as a result of efficiency
improvements and savings throughout the value chain, and the group realised an
EBIT of 1.4%, versus minus 1.2% the previous year 

• Profit before tax was DKK 9.6 million in the 2009/2010 financial year
compared with a DKK 29.6 million loss last year, which is a better result than
was expected 

• Helped along by a favourable profit trend and determined efforts to reduce
working capital, the group generated cash flow before instalments on long-term
debt amounting to DKK 77.8 million, or 8.5%, of revenue. Cash flow exceeded
expectations by far 

• For the financial year ahead, the group expects a revenue increase of 5-10%,
an EBIT of 3-4% and cash flow before instalments on long-term debt of 3% of
revenue 

'Throughout the entire financial year, BoConcept has worked intensively to
implement sales generating initiatives, strengthen the franchise concept,
ensure that the franchise stores generally have a high level of quality and
ensure a trim and cost-effective group structure. Therefore, we have been able
to increase the level of activity since autumn 2009, where market conditions
stabilised, and realise a satisfactory increase in earning capacity and cash
flow for the entire year, despite a decline in the revenue', states Viggo
Mølholm, President & CEO of BoConcept Holding. He continues: 

'The increased activity level towards the end of the financial year reflects a
trend, indicating a macro-economic turnaround. We want to exploit the
moderately improved market conditions and an increased effort on
growth-promoting initiatives with a view to ensuring improved order intake and
revenue levels and through this increase same-store-sales as well as the number
of brand stores in our franchise chain. At the same time our earning capacity
will be positively affected by the significant restructuring and efficiency
improvements, which have been implemented on an ongoing basis. Provided that
market conditions continue to improve, we expect the EBIT to increase to 12% as
we move towards the 2014/2015 financial year.' 

For further information, please contact President & CEO, Viggo Mølholm, or Vice
President & CFO, Hans Barslund, on telephone number: +45 7013 1366.