YEAR-END REPORT

REPORT FOR THE FOURTH QUARTER 2011/2012
Increase in gross profit margin

+-----------------------------+--------+-----+------+---------+---------+------+
|                             |       Quarter       |   Full year (SEP-AUG)    |
|                             |       4 (JUN        |                          |
|                             |        -AUG)        |                          |
+-----------------------------+--------+-----+------+---------+---------+------+
|                             |2011/201|2010/|Change|2011/2012|2010/2011|Change|
|                             |2       |2011 |      |         |         |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Net sales, SEK million       |1 129   |1 208|-79   |4 587    |4 974    |-387  |
|                             |        |     |      |         |         |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Operating profit excluding   |46      |17   |+29   |53       |236      |-183  |
|non-recurring costs, SEK     |        |     |      |         |         |      |
|million                      |        |     |      |         |         |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Operating profit/loss, SEK   |29      |3    |+26   |-64      |222      |-286  |
|million                      |        |     |      |         |         |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Gross profit margin, %       |57,0    |54,0 |      |56,7     |58,8     |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Operating margin, %          |2,6     |0,2  |      |-1,4     |4,5      |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Profit after tax, SEK million|-40     |-54  |+14   |-224     |68       |-292  |
+-----------------------------+--------+-----+------+---------+---------+------+
|Earnings per share, SEK (Note|-0,18   |-0,51|      |-1,15    |0,65     |      |
|1)                           |        |     |      |         |         |      |
+-----------------------------+--------+-----+------+---------+---------+------+
|Cash flow from operating     |-27     |-97  |+70   |153      |95       |+58   |
|activities, SEK million      |        |     |      |         |         |      |
+-----------------------------+--------+-----+------+---------+---------+------+

  · Net sales decreased by 6.5 per cent for the quarter and 7.8 per cent for the
full year.
  · Gross profit margin has increased by 3.0 percentage.
  · Costs decreased by 5.2 per cent for the quarter and 1.5 per cent for the
full year.
  · The balance sheet is strengthened by new share issue and sale of property.

“It is gratifying to see that there are many bright spots for KappAhl. By far
the strongest is that we have a better operating profit than the previous year.
(…) We are very eager to prove our worth, we are on the right path and doing the
right things.”

Johan Åberg, President and CEO. Read the full CEO statement in the enclosed
report.


A presentation and telephone conference will be held for analysts, media and
investors today at 9.00 at Operaterrassen in Stockholm. Please go to
www.kappahl.com/presentations to register attendance at Operaterrassen. At the
website a webcast will also be shown in real time and saved for later viewing.
To participate by telephone please call about 5 minutes before the start +44
(0)207 7509950.


For further information:
Johan Åberg / President and CEO, tel. +46 706 09 99 73
Håkan Westin, CFO, tel. + 46 704 71 56 64

For pictures and other information:
Annette Björklund / Head of public relations, tel. +46 704 71 55 42,
annette.bjorklund@kappahl.com