Rising gross margin and improved operating profit have been recorded for H1 2012/13. Management has decided to change brand portfolio, organisational structure and responsibilities of Group Management.

IC COMPANYS A/S
HALF YEAR FINANCIAL REPORT

CONSOLIDATED REVENUE FOR H1 2012/13 AMOUNTED TO DKK 2,036 MILLION WHICH, AS
EXPECTED, IS 3% LOWER COMPARED TO LAST FINANCIAL YEAR. THE GROUP’S GROSS MARGIN
IMPROVED BY 1.4 PERCENTAGE POINTS. THE OPERATING PROFIT AMOUNTED TO DKK 160
MILLION CORRESPONDING TO AN INCREASE OF 10%. IN TOTAL, THE GROUP’S PERFORMANCE
FOR H1 2012/13 WAS AS EXPECTED. NEW STRATEGIC INITIATIVES HAVE BEEN LAUNCHED IN
ORDER TO SUPPORT REVENUE GROWTH AND ENHANCED EARNINGS. 
  

* Revenue from the Premium segment increased by 1% to DKK 1,136 million (DKK
1,121 million). The brand Tiger of Sweden reported higher revenue and the brand
Peak Performance suffered a revenue setback as expected. The Premium operating
profit amounted to 143 million (DKK 147 million) and the EBIT margin was thus
12.6% (13.1%). 

  

* Revenue from the Mid Market segment suffered a setback of 15% to DKK 668
million (DKK 783 million) which was driven by a revenue consolidation of the
core markets. The Mid Market segment consequently reported an operating loss of
DKK 3 million (loss of DKK 3 million). The brands Jackpot and Cottonfield are
loss-making while the remaining Mid Market brands are generating profits. 

  

* Revenue from the Fast Fashion segment increased by 15% to DKK 231 million
(DKK 201 million) and at the same time the Fast Fashion operating profit rose
by DKK 19 million to DKK 22 million. The EBIT margin was thus 9.1% (1.1%). 

  

* Capacity costs for H1 2012/13 were reduced by DKK 26 million. The operating
costs were reduced by DKK 42 million. 

  

* Operating profit amounted to DKK 160 million (DKK 146 million). The Group
thus generated an EBIT margin of 7.9% (6.9%). 

  

* Order intake for the spring collection 2013 in respect of the Fast Fashion
segment has been completed satisfactorily and an increase of 1% or DKK 7
million has been recorded. An unchanged level was expected for this segment.
The smaller summer collection is expected to record a total setback of 10%. The
total order intake for H1 2012/13 recorded an increase of 2% for the Premium
segment, a reduction of 13% for the Mid Market segment and the Fast Fashion
segment is expected to record an increase of 11%. 

  

* The brand portfolio has been changed from 11 brands to 3 clearly defined
business segments. The restructurering is expected to reduce the Group’s
complexity significantly. The responsibilities of the Group Management are
changed in order to reflect the new organisation. 

  

* The Company has decided to divest the brands Jackpot and Cottonfield. During
the past few years the two brands have not been able to generate satisfactory
results consequently resulting in substantial losses. 

  

* The Company will enhance reporting transparency to the market. The new
reporting will lead to enhanced transparency in respect of the performance of
the individual segments. 

  
MORE PRECISE OUTLOOK FOR 2012/13  
Management still expects challenging market conditions for the financial year
2012/13 which particularly will affect the Mid Market segment. However, the
pressure on the Group’s gross margin is expected to abate in 2012/13. The
ongoing cost saving measures will continue. 
  
The strategic initiatives may have consequences for the outlook for the
financial year 2012/13 in terms of non-recurring income and costs. However, is
is not possible to estimate the effects yet. 
  
When excluding the possible effects from the mentioned strategic initiatives,
Management expects the consolidated revenue for the financial year 2012/13 to
attain at a level of DKK 3,700-3,750 million (previously announced: lower
revenue compared to the financial year 2011/12) and the consolidated operating
profit for the financial year 2012/13 to attain a level of DKK 140-170 million
(previously announced: at the same or a higher level compared to the financial
year 2011/12). 
  
Investments for the financial year 2012/13 are expected to attain the same
level as the financial year 2011/12. The investments are primarily expected to
be utilised for an expansion of the distribution in the Premium segment. 
  
Chief Executive Officer of IC Companys A/S Niels Mikkelsen commented; 
"By setting up three business segments and divesting the brands Jackpot and
Cottonfield, we continue the path of simplifying the Group in order to enhance
its growth and earnings capacity." 
  
IC Companys A/S 
  
Niels Mikkelsen Chris Bigler 
Chief Executive Officer Chief Financial Officer 
  
  
  
PLEASE DIRECT ANY QUESTIONS REGARDING THIS ANNOUNCEMENT TO:  
  
Chris Bigler 
Chief Financial Officer 
Mobile phone: +45 29 74 06 55 
E-mail: cbi@iccompanys.com 
  
  
  

This announcement is a translation from the Danish language. In the event of
any discrepancy between the Danish and English versions, the Danish version
shall prevail.