adler modemärkte ag
TRANSCRIPT
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1 ADLER
ADLER Modemaumlrkte AG
Equity Story June 2015
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ADLER 2 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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3 ADLER
Adler Modemaumlrkte AG is one of the leading and largest
textile retail chains in Germany
In depth experience with attractive (high purchasing power) and growing target group (menwomen 45+) specific brands portfolio and shopping experience
Highly attractive positioning in the value segment lower mid-price above discount segment
Strong track-record with omni-channel distribution strategy (retail stores growing online offer clickampcollect) and technological pioneer (RFID)
Focus on German speaking market
Strong track-record with omni-channel distribution strategy (retail stores growing online offer clickampcollect)
Strong dividend track-record
Highly committed and experienced management team (Lothar Schaumlfer CEO Karsten Odemann CFO)
1
2
3
4
5
6
rdquoPrice is the most important factor for European consumersrdquo Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
7
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4 ADLER
Competitive advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID Robotics
bull Sourcing enhancement
bull MomampPop Shop acquisitions
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5 ADLER
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Unique brand positioning with strong target group focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020
Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
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6 ADLER
Outstanding value-for-money perception
Fashion follower approach ndash conservative fashion grade management of market proven styles minimizing fashion risk
Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment
6
Unique brand position Brand positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
Unique brand positioning with strong target group focus 45+
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7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
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8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
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9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
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10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
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11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
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ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
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14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
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15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
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16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
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19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
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20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
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21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
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22 ADLER
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207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
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23 ADLER
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165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
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26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
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29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
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30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
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31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
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32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
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33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
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34 ADLER
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Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
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35 ADLER
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Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
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36 ADLER
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Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
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37 ADLER
Thank you for your attention
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ADLER 2 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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3 ADLER
Adler Modemaumlrkte AG is one of the leading and largest
textile retail chains in Germany
In depth experience with attractive (high purchasing power) and growing target group (menwomen 45+) specific brands portfolio and shopping experience
Highly attractive positioning in the value segment lower mid-price above discount segment
Strong track-record with omni-channel distribution strategy (retail stores growing online offer clickampcollect) and technological pioneer (RFID)
Focus on German speaking market
Strong track-record with omni-channel distribution strategy (retail stores growing online offer clickampcollect)
Strong dividend track-record
Highly committed and experienced management team (Lothar Schaumlfer CEO Karsten Odemann CFO)
1
2
3
4
5
6
rdquoPrice is the most important factor for European consumersrdquo Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
7
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
4 ADLER
Competitive advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID Robotics
bull Sourcing enhancement
bull MomampPop Shop acquisitions
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique brand positioning with strong target group focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020
Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
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234234234
6 ADLER
Outstanding value-for-money perception
Fashion follower approach ndash conservative fashion grade management of market proven styles minimizing fashion risk
Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment
6
Unique brand position Brand positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
Unique brand positioning with strong target group focus 45+
2260122
19226133
14711108
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777777
128128128
192192192
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7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
2260122
19226133
14711108
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777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
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777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
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777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
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777777
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192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
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19226133
14711108
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777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
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777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
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777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
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777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
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777777
128128128
192192192
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20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
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777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
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777777
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192192192
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3 ADLER
Adler Modemaumlrkte AG is one of the leading and largest
textile retail chains in Germany
In depth experience with attractive (high purchasing power) and growing target group (menwomen 45+) specific brands portfolio and shopping experience
Highly attractive positioning in the value segment lower mid-price above discount segment
Strong track-record with omni-channel distribution strategy (retail stores growing online offer clickampcollect) and technological pioneer (RFID)
Focus on German speaking market
Strong track-record with omni-channel distribution strategy (retail stores growing online offer clickampcollect)
Strong dividend track-record
Highly committed and experienced management team (Lothar Schaumlfer CEO Karsten Odemann CFO)
1
2
3
4
5
6
rdquoPrice is the most important factor for European consumersrdquo Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
7
2260122
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4 ADLER
Competitive advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID Robotics
bull Sourcing enhancement
bull MomampPop Shop acquisitions
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique brand positioning with strong target group focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020
Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Outstanding value-for-money perception
Fashion follower approach ndash conservative fashion grade management of market proven styles minimizing fashion risk
Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment
6
Unique brand position Brand positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
Unique brand positioning with strong target group focus 45+
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
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19226133
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777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
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128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
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245207238
000
777777
128128128
192192192
234234234
4 ADLER
Competitive advantages
Target group
bull High loyalty
bull Demographic shift
bull Dominant share in consumption spending
Customer Card
bull 90 of revenues generated via customer card
bull Wide customer database
bull Efficient marketing tool
Late fashion follower
bull Low fashion risk
bull Low cost pressure due to longer lead times
bull But ability to adapt quickly when needed
Brand positioning
bull High brand awareness in Germany of 76
bull Focus on Best Agers in the Value for Money segment
Set in motion
bull E-shop
bull RFID Robotics
bull Sourcing enhancement
bull MomampPop Shop acquisitions
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
Unique brand positioning with strong target group focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020
Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
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777777
128128128
192192192
234234234
6 ADLER
Outstanding value-for-money perception
Fashion follower approach ndash conservative fashion grade management of market proven styles minimizing fashion risk
Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment
6
Unique brand position Brand positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
Unique brand positioning with strong target group focus 45+
2260122
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192192192
234234234
7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
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777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
5 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Unique brand positioning with strong target group focus 45+
high
Source Company information
Pri
ce le
vel
Average age low
high
Source Company information Axel Springer AG OCampC-Analysis
23
51 55
24
1816
24
15 13
2916 16
below 50 years
50 ndash 59 years
60 ndash 69 years
70 years and older
Overall population
100
ADLER
100
Peer group
100
Outstanding focus on best ager in the value for money segment
Only fashion retailer dedicated to target customers aged 45+
Average age of 60 years
Demographic change enables high future potential in the target market
Customers aged 50+ are the most important customer group for clothing footwear and jewellery already accounting for 52 of total consumption growing to c59 in 2020
Agentur fuumlr Generationen-Marketing (June 2010) Roland Berger
Adler has older customers than competitors Unique position in the target group best agers
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Outstanding value-for-money perception
Fashion follower approach ndash conservative fashion grade management of market proven styles minimizing fashion risk
Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment
6
Unique brand position Brand positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
Unique brand positioning with strong target group focus 45+
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
6 ADLER
Outstanding value-for-money perception
Fashion follower approach ndash conservative fashion grade management of market proven styles minimizing fashion risk
Excellently positioned in the attractive fast growing value fashion segment and above the vulnerable discount segment
6
Unique brand position Brand positioning of ADLER
Fashion degree low high
Up
per
Mid
dle
D
isco
un
t V
alu
e
Source Company information
Unique brand positioning with strong target group focus 45+
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
7 ADLER
45+ an attractive target group with high growth potential
Strong demographic growth through increased life expectancy and baby boomers entering target customer segment
The demographic shift significantly increases the best ager target group in the future
The share of women in Europe stays constant at 52
From 2010 to 2050 the median age of the European population is expected to increase from 403 to 457
The equivalent number in Germany is 443 to 515
The female best ager will account for 57 of the total European apparel market by 2018 signifying euro 200 bn (38 in 2011 signifying euro 128 bn)
5 3 1 1 3 5
05
101520253035404550556065707580
85+
Ag
e
Men Women
Source xerfi Global Clothing Retail Chains ndash Europe Market Analysis ndash 2014-2019 Trends ndash Corporate Strategies November 2014
Favorable demographic development in Europe
Demographic development (EU28) in of the total population
Solid colour 2080 Bordered 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
8 ADLER
Strong brand awareness
Strong brand awareness of 76 among all age groups in Germany
High brand recognition in relation to existing store network offers strong future sales potential
Germany ndash Number of Stores2) Germany ndash Brand Awareness1)
Sources 1) Textilwirtschaft (Top Shops 2013 2) Company information latest publications at enquiry
All age groups
91
91
76
68
65
57
48
53
18
153
504
391
285
~ 1494
409
713
~ 200
gt70
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
9 ADLER
Set for further growth of net store base
Existing ADLER stores
Potential new ADLER stores in AT and DE
Number of ADLER Stores Per Country
Number of stores
Country Market
entry 2009 2010 2011 2012 2013 2014
Q1
2015
Germany 1948 104 107 132 139 143 145 154
Austria 1987 17 26 28 27 25 22 21
Luxembourg 1981 2 2 2 2 2 2 2
Switzerland 2012 1 1 1 1
Total Group 123 135 162 169 171 170 178
Organic openings 3 8 13 11 5 4 0
Acquired (MampP) 7 18 5 1 0 10
Closingssold 1 3 3 9 4 5 2
Net change 2 12 28 7 2 -1 8
ADLERrsquos Regional Presence And Expansion Potential
Excl online shop
Nine stores acquired from Kressner one store acquired from hefa
One former Kressner store sold to Steilmann-Boecker Fashion Point
Eight from Kressner acquired stores fully integrated including ADLER Orange branding
One new opening in Moumlmlingen (former hefa store)
One store closure in Q1 2015 Graz-Goumlsting (Austria)
Refurbishment of six ADLER stores completed
Most recent highlights (Q1 2015)
Integrated ADLER-ORAGNE stores (former Kressner stores)
New ADLER store in Moumlmlingen
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
10 ADLER
Potential still far from being exhausted
Sales and profitability
improvement
Acquisition of MomampPop
Shops
Refurbish-ments
Store openings
Further image improvements
E-shop enhancement
RFID Robotics
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
11 ADLER
80
100
120
140
160
180
200
Adler Modemaumlrkte AG DAX SDAX
euro 040 euro 045
euro 050
2012 2013 2014
Shareholders participate from ADLERlsquos success
Development of dividends
+ 125
Dividend for 2014 euro 050 per share
Increase of 111
Payout ratio of 656
+ 111
+ 250
Share price development 2014
Share price of Adler Modemaumlrkte AG increased by 31 in 2014
80
100
120
140
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
ADLER 12 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
13 ADLER
Successful acquisition of Kressner
Deal closed on January 12 2015
Acquisition of 100 of Bekleidungshaus Kressner GmbH amp Co KG as well as managing general partner Kressner GmbH from
REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family
Take-over of all 9 stores 1 store sold to Steilmann Boecker 1 closure planned for end of 2015 7 stores to maintain in ADLER
portfolio
Reflagging completed ADLER Orange concept installed
Soft transformation from Kressnerrsquos to ADLERrsquos offer treated gross profit margins with care
Performance of ADLER Orange stores ahead of internal expectations
Staff reductions almost completed largest share of expenses already booked in Q1 2015
Lower refurbishment costs than expected
Former Kressner stores will operate profitable earlier than expected acquisition will generate positive earnings
contributions latest next year
Integration fully in line or ahead of internal plans
ADLER Orange store in Ahlen
ADLER Orange store in Bischofswerda
ADLER Orange store in Waldbroumll
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
14 ADLER
Existing online offer supplemented by +Size online shop for big sizes
Successful launch in March 2015
Individual Live-Chat counselling
Specifically targets increasing consumer group with dress size 42+
Many well-known plus size brands as well as complete outfits and fittings
Higher conversion than ADLERrsquos ldquoregularrdquo online shop
Allows customers to pick up merchandise they purchased online at ADLER stores
Targets customers online and in stores thus further expanding ADLERs omni-channel strategy
NEW +Size online shop with very successful start
Click amp Collect grew by 15 during Q1 2015
Extension amp improvement of ADLERrsquos online offer
Larger offer as well as complete outfits
Increase of average transaction value by 7 from euro77 to euro82 since start of spring collection 2015
Strongly increased conversion 31 March 2014 31 March 2015
Online revenue continues to increase
in meuro +euro 02m
10 12
Ongoing optimization of omni-channel offer
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
15 ADLER
Pioneering RFID technology
Process enhancement base on implementation of RFID technology
First test with Pal-Robotics in ADLER store in Erfurt
Cooperation with MetraLabs on prototype - testing phase starting in Q2 - 2015
Stock taking of selling- and warehouse space within ADLER stores
Inventory robots on the starting blocks
More time available for customer service by employees
Potential sales increase through higher assortment availability
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
16 ADLER
ADLERlsquos engagement
Meena eV Fairtrade
ICO BSCI
ADLER as pioneer in Germany ADLER as long-term partner
To improve the working conditions in the global supply chain
For the sustainable management of waste textiles
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
17 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
18 ADLER
Seasonality of ADLERrsquos business
Earnings in the current reporting period were negatively impacted by the non-recurring effects of the acquisition of Bekleidungshaus
Kressner GmbH amp Co KG signed in late 2014
Traditionally sales profits and financing requirements of retailers in the apparel sector like ADLER are affected by seasonal
fluctuations Goods receipt and financing requirements peak in Q1 and Q3
Seasonal effects regularly cause negative earnings increased inventories and an increase in trade payables in particular in the first
quarter of the year
Acquisitions and cyclical business environment impacted Q1 2015
Revenue EBITDA
in meuro in meuro
CAGR11-15 78
CAGR11-14 46
CAGR11-14 74
CAGR11-14 -09
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
-130
Q1 Q2 Q3 Q4
2011 2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
19 ADLER
1151
1132
Q1 - 2015Q1 - 2014
Q1 2015 sales trend
Good sell-through rates pushing group sales
Sales increase of 17 to euro1151m
Like for like sales down 41 but still significantly better than the industry average of -50
Key sales drivers and reasons
1 Kressner contributed positively to sales
2 Strong comparable basis in the previous year when sales grew by 84
3 Thanks to the good weather in March during the previous year the sale of the spring collection had already begun which was not yet the case given the mixed weather this March
in meuro
Positive like for like trend continues in Q1 2015
Q1 2015
+ 17
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014 2015
-41 -50
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
20 ADLER
495 511
Q1 - 15Q1 - 14
Gross profit margin
Gross profit margin decrease of 200 bps to 495
Key reasons
1 Increased cost of materials from euro 549 m to euro 582 m which primarily reflects the higher cost of goods sold for newly acquired stores
2 Clearance sale of Kressner merchandise in stock ndash temporary effect
Q1 2015 gross profit margin
Gross profit margin trend
Q1 2015
- 200bps
466 530
497
592
495
571 531
589
515 574 530
554 495
Q1 Q2 Q3 Q4
2012 2013 2014 2015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
21 ADLER
-113
-49
Q1 - 15Q1 - 14
EBITDA affected by acquisitions
EBITDA decreased from euro-56m to euro-130m
EBITDA margin down 640bps to -113
Key reasons
Q1 2015 EBITDA
Q1 2015 EBITDA margin
Q1 2015
1 Lower level of revenue
2 Seasonality of business
3 Investments in new store in Moumlmlingen as well as real estate investment in Austria
4 Acquisitions
Higher personnel expenses
Higher cost of material
in meuro
- euro 74m
- 640 bps
-13
-56
Q1-15Q1-14
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
22 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234 343
207
March 31 2015March 31 2014
CF and net debt position in traditionally weak Q1
Cash flow net debt improvement
Decrease in free cash flow to euro-260m
Higher cash outflow from operating activities of euro-170m due primarily to the increase in inventories and the consolidated loss for the period
Higher cash outflow from investing activities of euro53m compared to Q1 2014 mainly due to acquisitions (Kressner and hefa) real estate purchase and modernization measures
euro27m negative CF from financing activities
Debtequity ratio increased from 131 (31st December 2014) to 168 (31st March 2015)
Net Debt position of euro 343 m as of 31st March 2015
Net Debt remains on a low level
Including liabilities from customer card pension provisions finance lease liabilities ex assets held for sale cash other financial liabilities
+ euro136m in meuro
in meuro
170
90 27
409
697
Cash Position01012015
CF from OperatingActivities
CF from InvestingActivities
CF from FinancingActivities
Cash Position31032015
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
23 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
165 112
March 31 2015March 31 2014
950 878
March 31 2015March 31 2014
Working capital
Inventories
Operating working capital
+ 112
in meuro
in meuro
Trade payables Cash position
+ 473
As at 31 March 2015 working capital rose to euro 476 m thereof were euro 38 m due to the Kressner acquisition
Ongoing improvement in inventory management
Working capital ratio changed from 379 in Q1 2014 to 414 in Q1 2015
+ 82
409
697
520
March 312015
Dec 31 2014March 312014
476
428
March 31 2015
March 31 2014
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
24 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
25 ADLER
Outlook 2015
Guidance
Sales Mid single digit
EBITDA Stable to slightly negative due to
integration cost
Expansion 5 - 10 new stores
Additional store closures
Gross profit margin
Personnel expenses Slight increase
Slight increase
Transport and logistics costs Slight increase
Operational outlook
Further strengthening the umbrella brand ADLER
Increase presence of private brands in non-ADLER stores
Further acquisition of Mom amp Pop shops
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
26 ADLER
Financial calendar amp contact details
Adler Modemaumlrkte AG Industriestrasse Ost 1 ndash 7 D - 63808 Haibach Phone +49 6021 633-1828 Fax +49 6021 633-1417 eMail InvestorRelationsadlerde
Report on the first half of 2015
August 6th 2015
Report on the first nine months of 2015
November 12th 2015
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
27 ADLER
1
Most recent business highlights 2
3 Financials Q1 2015
Investment case
4 Outlook 2015
5 APPENDIX Financials FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
28 ADLER
Cornerstones and highlights 2014
New Image Campaign
Area-wide launch of RFID technology
Store refurbishments
Store portfolio consolidation
Modernization of assortment
Promotion of E-Commerce business
Optimization in procurement and purchasing
Adjusted sales up 2 to euro 5353m
Like for like sales up 30 outperforming German apparel sector by 60
High gross profit margin of 546 despite unfavorable market conditions
Adjusted EBITDA increase by 62 to euro 415m due to excellent cost control
Adjusted EBITDA margin up 30bps
ESP of euro 077 after euro 105 due to higher income tax and sale of treasury shares
PampL highlights
High free cash flow of euro 250m
Liquidity further increased to euro 697m ensuring room for maneuver
Net debt at historic low of euro 46m
Strong equity ratio of 433
Improvement of WC ratio to 82 (LTM)
Balance sheet highlights
Cornerstones 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
29 ADLER
Positive like for like performance in an unfavorable market
ADLER like for like growth vs German textile sector
TW-Testclub
With 3 like for like growth in Q4 ADLER outperformed
the German apparel sector by gt 10
Supported by promotions in December which pushed like
for like sales by 137 despite high previous year growth
of 119
ADLER showed a like for like growth in three out of four
quarters leading to a like for like increase of 3 in FY2014
ADLER quarterly like for like comparison Ongoing positive like for like performance
-41
119 149
22 23
-65 -43
101
26
-12 -28
137
20 50
80
-50
20
-80 -70
70
-90 -100 -90
-40
Jan Feb Mrz Apr Mai Jun Jul Aug Sept Okt Nov Dez
ADD L4L Sector
30 30 30
-10
-80
-30
9m 2014 Q4 2014 2014
ADD L4L Sector
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
30 ADLER
FY 2014 ndash An overview
Sales trend EBITDA trend
in meuro
Positive trend in sales and profitability
Sales increased by 13 to euro5353m an adjusted sales growth of 2 and 3 like for like
Reported gross profit margin decreased by 110bps adjusted decrease by 60bps due to promotions in Q4-2014
EBITDA of euro415m down by 33 reported up 61 adjusted
EBITDA margin slightly decreased by 30bps reported adjusted margin up 30bps to 78
Decrease in opex by euro14m or 70bps in of sales
EPS down by 27 to euro077 due to high previous year base concerning customer card and higher number of attributable shares in 2014 due to sale of treasury stocks
Q1 Q2 Q3 Q4
2011 2012 2013 2014
CAGR11-14 72
CAGR11-14 46 CAGR11-14
74
CAGR11-14 -09
Adjusted 2013 Years 20112012 positively effected by customer card
-66
112
01
311
-77
84
02
353
-86
179
23
275
-56
185
54
233
Q1 Q2 Q3 Q4
2011 2012 2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
31 ADLER
Q4 and FY 2014
Sales Positive end for FY 2014 despite headwinds
Increase in sales by 13 to euro5353m
Adjusted increase of 20
Like for like sales up 30
Ongoing growth in a shrinking German Apparel sector
2014 increase in sales predominantly volume driven
Largely outperforming a strong previous year
FY 2014
FY 2014
Strong FY 2013 largely outperformed despite unfavorable market conditions
Main reasons for outperformance
New Image Campaign
RFID Rollout
Assortment and marketing measures well received by customers
in meuro
+ 13
1574 1617
Q4 - 14Q4 - 13
- 27 5353
5286
FY 2014FY 2013
-53
113
46 26
36
83
-05
26 30 30
Q1 Q2 Q3 Q4 FY
2013 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
32 ADLER
Solid gross profit margin of 546
High gross profit margin of 546
Decrease of 50bps on an adjusted basis of 551 in FY2013
Promotions in Q4 2014 slightly burdened positive gross margin development throughout 2014
Fresh start into 2015 due to successful inventory cleaning
Q4 and FY 2014 gross profit margin
Gross profit margin trend
FY 2014
485 530
495 533 466
530 497
592
495
571 531 589
515 574
530 554
Q1 Q2 Q3 Q4
554 599
Q4 - 14Q4 - 13
546 556
FY 2014FY 2013
- 100bps
Adjusted 2013
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
33 ADLER
EBITDA supported by positive trends in cost structure
Slight decline of euro 14m to an EBITDA of euro 415m
Adjusted increase of euro 24m or 62
EBITDA margin slightly down by 30bps
Margin increase of 30bps on an adjusted basis
Q4 and FY 2014 EBITDA
Q4 and FY 2014 EBITDA margin
FY 2014
in meuro
232 313
Q4 - 14Q4 - 13
- euro 81m
415 429
FY 2014FY 2013
- euro 14m
148
194
Q4 - 14Q4 - 13
- 460bps
78 81
FY 2014FY 2013
- 30bps
Operating EBITDA trend supported by declining opex base of euro 14m from euro 1665m in FY 2013 to euro 1651m in FY 2014
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
34 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Liquidity further increase
Cash flow
Free cash flow of euro 250m under previous year level mainly due to higher investments and tax payments
Lower net income FY 2014 leading to slightly lower CF from operating activities of euro 45m to euro 364m
Cash outflow from investing activities of euro 114m increase by euro 22m due to higher refurbishment activities
Cash outflow from financing activities of euro 98m decrease by euro 96m due to placement of treasury shares of euro 89m
Increase in cash position by euro 152m from euro 545m to euro 697m End of 2014
in meuro
114 98
697
364
545
Cash Position01012014
CF fromOperatingActivities
CF from InvestingActivities
CF fromFinancingActivities
Cash Position31122014
Equipped with the liquidity necessary to further support profitable growth
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
35 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Strong improvement of balance sheet ratios
Strong decrease in net debt position by euro 144m to euro 46m
Net cash position almost accomplished even after taking finance lease obligations into account
Low net debt and hellip
Including pension provisions financial liabilities finance lease liabilities ex assets held for sale cash
in meuro
hellipstrong in equity position
Noticeable increase in equity of euro 136m to euro 1056m as well as equity ratio of 300bps to 433
46
190
Dec 31 2014Dec 31 2013
- euro 144m
1056
920
433
403
Dec 31 2014Dec 31 2013
Equity Equity ratio
in meuro
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
36 ADLER
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
Well prepared for a fresh start into 2015
Inventories
Operating working capital
in meuro
Trade payables
Working Capital slightly increased by euro 06m driven by lower accounts payable
Improvement of WC ratio of 82 December 2014 compared to 83 December 2013
Insignificant amount in trade receivables of lt euro 02m
in meuro
Decrease in inventories by 25
Clean start into 2015 possible due to inventory cleaning in Q4 2014
Trade payables down 73
in meuro
based on LTM
501 426 404 434 429 405
464 440
Q1 H1 9m FY
2013 2014
756 775
Dec 31 2014Dec 31 2013
- 25
317 342
Dec 31 2014Dec 31 2013
- 73
2260122
19226133
14711108
245207238
000
777777
128128128
192192192
234234234
37 ADLER
Thank you for your attention