Clas Ohlson third month report 2015/16

First quarter

  · Sales increased by 8% to 1,770 MSEK (1,642), 8% in local currencies
  · Operating profit increased by 4% to 106 MSEK (102)
  · Profit after tax increased by 3% to 81 MSEK (78)
  · Earnings per share increased by 3% to 1.27 SEK (1.24)
  · Cash flow from operating activities amounted to 170 MSEK (171)
  · As previously announced, the Board of Directors proposes that a dividend of
5.25 SEK per share (4.75) be approved by the Annual General Meeting
  · Clas Ohlson’s Annual Report and Sustainability Report for 2014/15 were
published
  · Eight new store contracts were signed, including two in the London area in
the UK and three in Hamburg in Germany
Events after the end of the reporting period

  · Sales in August amounted to 611 MSEK (611). In local currencies sales
increased by 2%
  · An historic milestone was achieved when Clas Ohlson’s 200th store was opened
in Karlstad, Sweden, in August
  · A new store contract was signed in Oslo in Norway

CEO’s comments

“We passed yet another milestone on our growth journey

Following a favorable summer, we are wrapping up the quarter by reporting record
sales figures and an increase in earnings. In August, we achieved a new
milestone when we opened our 200th store.

During the quarter, we increased sales by 8 per cent to 1,770 MSEK, which we are
extremely pleased with. We saw particularly strong sales trends in Norway and
Finland, and Sweden also reported healthy growth figures. Although we
experienced a slightly weaker August with sales of 611 MSEK, we can round off
another record-breaking summer for Clas Ohlson.

In our first quarter, we increased operating profit by 4 per cent to 106 MSEK,
despite challenging currency conditions and an adjustment cost of 10 MSEK.

Moving forward, we expect the stronger USD to have a negative impact on our
gross margin in forthcoming quarters and we are focusing fully on reducing this
effect. In addition, we are impacted by the NOK trend, which is currently
trading at a low level. We believe that we will be able to offset these currency
fluctuations over time, which is something that we have achieved in the past.

Strengthened by continued expansion and new ventures

Our journey of growth is continuing. In August, I had the honor of cutting the
ribbon to open Clas Ohlson’s 200th store, which is a milestone in the company’s
history. And in a couple of weeks we will open our store in St Albans, just
outside London.

We are now launching our concept From Here to Sustainability to engage our
customers in a more sustainable lifestyle. We also take further steps in our
market communication by featuring parts of our product range in films to give
customers inspiration and tips for brand new ways for them to simplify their
everyday lives. It is a journey we have just begun and that we will see positive
effects from during the autumn.”

Press and analyst conference

A press and analyst conference will be held on Wednesday 9 September at 08:30
a.m. at Clas Ohlson’s store at Drottninggatan 53 in Stockholm and can also be
followed on about.clasohlson.com or www.financialhearings.com
For more information please contact:

Sara Kraft Westrell, Director of Information and IR, phone +46 (0)247-649 13
Clas Ohlson was founded in 1918 as a mail order business based in Insjön,
Dalarna, Sweden. Today, the company is trading in five countries offering
outstanding service via its approx. 200 stores, web shop, catalogue and
telephone sales channels. Clas Ohlson helps its customers solve every day
practical small problems with a wide range of affordable products in five
product areas: Hardware, Electrical, Home, Multimedia and Leisure. The company
is listed on the Nasdaq Stockholm, has sales of over 7 billion SEK and over
4,700 employees. Visit Clas Ohlson at www.clasohlson.com.

The financial year 2015/16 comprises the period from 1 May 2015 to 30 April
2016.