ANNOUNCEMENT OF FINANCIAL RESULTS FOR THE FIRST SIX MONTHS OF 2013/2014 FOR BOCONCEPT HOLDING A/S

BoConcept increased its activities in the first half of 2013/2014 - albeit less than expected. BoConcept has thus invested a substantial amount in marketing, implemented a new performance-driven management strategy, launched more products and continued its expansion. These initiatives will take full effect in the second half of 2013/2014.

| Source: BoConcept Holding BoConcept Holding

Second quarter of 2013/2014 (1 August 2013 to 31 October 2013)

  • Revenue was DKK 281.7 million, up by 1.3% compared with the same quarter last year
  • Same-store-sales (order intake) fell by 0.3%
  • The gross profit margin was 42.3%, compared with 42.5% last year
  • EBIT amounted to DKK 7.0 million, corresponding to an EBIT percentage of 2.5%, versus 3.2% last year
  • 13 new brand stores opened and 13 closed. The chain now consists of 255 stores
  • The pipeline is still strong, with 17 stores in the pipeline scheduled to open in the second half of 2013/2014

First six months of 2013/2014 (1 May 2013 to 31 October 2013)

  • Revenue was DKK 528.4 million, up 0.7% on the same period last year
  • Same-store-sales (order intake) fell by 1.4%
  • The gross profit margin was 42.2% compared with 43.7% last year
  • EBIT was negative in the amount of DKK 4.7 million compared with a positive EBIT of DKK 18.3 million last year
  • 18 stores opened and 15 have closed in the year to date
  • The balance sheet total was DKK 607.3 million at 31 October 2013
  • Cash flow before instalments on long term debt totalled a cash outflow of DKK 56.2 million, compared with a cash inflow of DKK 5.9 million last year

Forecast for the 2013/2014 financial year

The implementation of a new performance-driven management strategy and more product news are expected to have a positive effect on the level of activity in the chain in the second half of 2013/2014, which will offset the minor lag in revenue from the first half of 2013/2014 and the predicted greater negative effect from changed foreign exchange rates. Earnings will be at the lower end of the range, and more funds will be tied up in inventories to support sales, resulting in reduced anticipated cash flows.

  • Revenue is expected to grow by about 4% per year due to additional revenue generated by the stores acquired in China
  • Same-store-sales (order intake) will remain at the current level, corresponding to zero growth
  • 35 new stores opened (net addition of ten)
  • The EBIT percentage will be about 2.5%
  • Cash outflow before instalments on long-term debt will total approximately DKK 30 million
  • Investments (excluding start-up finance for franchisees) will amount to approximately DKK 30 million

         For further information contact CEO Torben Paulin or CFO Hans Barslund, on tel. +45 7013 1366

Attachments

fo051213_10_gb.pdf