Casual fashion for a casual life Disclaimer Important information - - PowerPoint PPT Presentation

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Company Presentation

August 2010

Casual fashion for a casual life

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Important information This document has been prepared by Tom Tailor Holding AG for information purposes only, solely for the use at this investors presentation must be treated confidentially by attendees at such presentation and must not be distributed, passed on or otherwise disclosed. In particular, this document is not an offer of securities for sale in the United States or any other jurisdiction. The information contained in this document has not been independently verified. We make no representation or warranty, express or implied, as to, and you should not unduly rely on, the fairness, accuracy, completeness or correctness of the information or opinions in this document. This document contains forward-looking statements. These forward-looking statements reflect our management’s current views with respect to certain future events and financial performance. A number of factors could cause our actual results to differ materially from those projected or implied in such

• statements. We accept no obligation to update any of the forward-looking statements in this document or to adjust them for future events or developments.

Our common shares are listed on the regulated market of the Frankfurt Stock Exchange (Prime Standard). We publish annual, quarterly and other reports and announcements in accordance with German law and the rules of the Frankfurt Stock Exchange. You can find these publications on our website at www.tom-tailor.com.

Disclaimer

TOM TAILOR COMPANY PRESENTATION

3 TOM TAILOR COMPANY PRESENTATION 3

Act Premium – Sell Volume

4 TOM TAILOR COMPANY PRESENTATION

Act Premium – Sell Volume

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Strong and experienced management team

Dieter Holzer, CEO

• Joined TOM TAILOR in September 2006
• 2000-2006: CEO at Tommy Hilfiger

Germany

• 1995-2000: Wholesale Manager at Esprit

Europe, especially for Germany, UK and Eastern Europe

• Dr. Axel Rebien, CFO
• Joined TOM TAILOR in October 2005
• 2002-2005: Ernst & Young Corporate

Finance, Transaction Advisory Services

• 1999-2002: Arthur Andersen
• 1991-1998: Bremer Landesbank Capital

Markets

Christoph Rosa, CPO

• Joined TOM TAILOR in November 2007
• 2003-2007: Marketing Director Street

One (Division Head, CBR Group)

• 2002-2003: Rosa Retail Proprietor
• 1999-2002: P&C Buying Department

TOM TAILOR COMPANY PRESENTATION

6 TOM TAILOR COMPANY PRESENTATION

Investment highlights–A proven business concept with a strategy for systematic and profitable growth

Vertical system-supplier

• f lifestyle

fashion Attractive growth potential Strong profitability upside Experienced management team

• Lean and vertical business model with full information control over entire

value chain

• Fashion follower approach with 12 collections per year minimising fashion risk
• Strong growth potential across product divisions
• Multi-channel distribution focused on controlled space driving growth and

fostering brand reach

• Strong economies of scale effects
• Structural margin upside potential through systematic retail expansion
• Business revitalisation since entry of new management as base for

systematic and profitable growth

• Long-standing industry experience and track record at leading apparel players

1 2 3 4

7 TOM TAILOR COMPANY PRESENTATION

TOM TAILOR at a glance

Balanced product portfolio Strong international presence Multi-channel distribution

MEN 41% WOMEN 32% KIDS & MINIS 13% Denim Male 7% Licenses and other 2% Wholesale/B2B 75% Retail/B2C 25% Domestic 69% International 31%

Total revenues 2009: €300.2mm Total revenues 2009: €300.2mm Total revenues 2009: €300.2mm

Denim Female 5%

WOMEN MEN KIDS & MINIS Licenses/Accessories Denim Female

Casual 86% Denim 12%

Denim Male

Controlled distribution

Total revenues 2009: €300.2mm

Shop-in-shop 24% Franchise 11% E-business 6% Retail stores 20%

Non-controlled distribution 40% Controlled distribution 60%

Fiscal year 2009, as of December 31, 2009

8 TOM TAILOR COMPANY PRESENTATION

Multi-channel distribution approach providing significant growth opportunities

Retail Franchise Multi-label E-business

96 own operated stores across Europe 205 across Europe 1,240 across Europe ~4,500 worldwide www.tom-tailor.de www.tom-tailor.at www.tom-tailor.nl PoS

as of June 30, 2010 Controlled distribution

Promote identification with the brand Attract potential franchisees Mono-label stores run on a franchise basis Assistance in professional retail space management Fundamentally strong distribution channel launched in December 2006 High customer convenience

Highlights

Retail / B2C Wholesale / B2B

Shop-in-shop

Demarcated retail areas in department stores Situated in top locations in larger towns and cities and shopping centres Designed in accordance with TOM TAILOR’s specifications Listings in multi-label retailers offering a limited range of TOM TAILOR products

9 TOM TAILOR COMPANY PRESENTATION

TOM TAILOR has outperformed the apparel market

Clothing market–Germany (€bn) TOM TAILOR Retail–Like-for-like sales growth

12.6% 2.8% 4.6% 14.0% 16.5% 2007 2008 2009 Excluding e-business Including e-business

Highlights

Significant outperformance of TOM TAILOR, growing in

Germany at a CAGR 06–08 of 12.5%, systematically gaining market share

Strong growth momentum through retail store roll-out and like-

for-like sales growth

High level of fragmentation in the Western European and

German apparel industries with the top 5 companies holding a market share of 11.7% and 15.0%, respectively

55.7 56.2 56.4 2006 2007 2008 Source: Verdict (2009)

+12.5% TOM TAILOR CAGR 06–08: +0.7% Market CAGR 06–08:

Top 5 companies 11.7% Others 88.3% Top 5 companies 15.0% Others 85.0%

Western Europe

Market shares

Germany

Source: Mintel report (October 2009)

10 TOM TAILOR COMPANY PRESENTATION

Lifestyle matrix

Vertical system-supplier of lifestyle fashion

A premium lifestyle brand at affordable prices

Low High

Strong market positioning in the young, casual lifestyle segment Primarily targeting the middle-income consumer segment with a highly attractive value-for-money proposition

JIL SANDER

TOM TAILOR target group

Source: German Federal Statistical Office - Statistical Yearbook 2009, Management view; ¹ Excludes ~2.9mm households for which no disposable income figures are available as per German Federal Statistical Office

TOM TAILOR target group

2.5 HHs (Disp. income: > €4,500) 20.3 HHs (Disp. income: €1,500-4,500) 14.4 HHs (Disp. income: < €1,500)

2008 37.2mm¹ Households (HHs) % of HHs 6.7% 54.6% 38.7% Nominal disposable income of German households

Fashion degree

Exclusive segment Bridge segment Medium price segment Low to medium price segment STRENESSE MAX MARA ESCADA PRADA BOGNER HUGO BOSS STRELLSON MARC O’POLO TOMMY HILFIGER STEFANEL BONITA GERRY WEBER ESPRIT BENETTON MEXX ZARA MANGO STREET ONE CECIL

• S. OLIVER

H&M ORSAY NEW YORKER PIMKIE BESTSELLER GROUP TAKKO KIK C&A DIESEL REPLAY G-STAR RALPH LAUREN CLOSED LERROS

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11 +14%-pts +12%-pts +16%-pts +2%-pts TOM TAILOR COMPANY PRESENTATION

One of the key winners in recent history according to Spiegel Outfit–a leading brand survey in Germany Industry-leading growth rates across all relevant brand dimensions

Source: Spiegel Outfit study 6 (2007); Spiegel Outfit study 5 (2001)

Vertical system-supplier of lifestyle fashion

Strong consumer acceptance: TOM TAILOR is one

• f the fastest growing apparel brands

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Brand awareness Brand ownership Willingness to buy

2001 2006/7 40% 77% 72% 68% 71% 88% 87% 77% 8% 27% 25% 18% 22% 39% 41% 20% 12% 32% 31% 25% 26% 41% 43% 28%

+14%-pts +9%-pts +12%-pts +3%-pts

2001 2006/7 2001 2006/7 2001 2006/7

Dimensions of consumer acceptance and brand recognition across competitors

+31%-pts +11%-pts +15%-pts +9%-pts

12 TOM TAILOR COMPANY PRESENTATION

Vertical system-supplier of lifestyle fashion

Lean and vertical business model with full information control over entire value chain

Design Technical preparation Buying / purchasing Product management

e.g. Women

Complete outsourcing

• f manufacturing

and procurement Centralised warehousing system Points-of-sale

Product development Sourcing Logistics Distribution Focus on core value added processes: product development and distribution Track record for system expertise and meticulous supply chain management

Full information control across all value chain processes

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Low fashion risk with 12

collections per year

~90% of purchasing in

wholesale segment via pre-order system minimising stock risk

Multi-channel distribution

approach with focus on controlled distribution

Outsourced to DHL with B2B

portal ensuring 24/7 availability for business partners

13 TOM TAILOR COMPANY PRESENTATION

Lead time:

Product cycle–time-to-market

Standard process Fast track Sale Development Production Transport & warehouse Spot style 1 11 8 1-4 2 1 4 5 1/2 1/2 PoS 4W 1/2 1/2 1T 1-2 days 4 1/2 1/2

Note: Numbers in weeks unless stated otherwise

Vertical system-supplier of lifestyle fashion

Systematic process design facilitating high flexibility to rapidly react to latest market trends

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Collection development

Monthly concept meeting Market scout Collection development jointly by designer and market scout Designer

Fashion follower approach with 12 collections per year minimising fashion risk

Systematic research of market intelligence

and identification of successful fashion trends

Fast incorporation of market-proven

fashion styles

Operational value chain allows for 12

collections per year for each product division

“Bestseller management” ~23-26 weeks ~11 weeks ~5 weeks

14 TOM TAILOR COMPANY PRESENTATION

Attractive growth potential

Unique breadth of complementing growth drivers

• 2

Internationalisation Market share potential Licensing TOM TAILOR Denim Controlled wholesale area E-business Retail store roll-out

15 TOM TAILOR COMPANY PRESENTATION 16.6 5.1 FY 2007 FY 2009

Own

• perated

stores E-business Franchise stores Shop-in- shops Multi-label

87 29 2007 2009 CAGR: 73.2% 201 159 2007 2009 C A G R : 1 2 . 4 % Number of stores 1,108 757 2007 2009 CAGR: 21.0% 4,512 5,625 2007 2009 C A G R : ( 1 . 4 ) % CAGR: 81.0% Revenues (€mm)

Retail / B2C Wholesale / B2B

Fast store roll-out programme in domestic market Systematic expansion in lucrative international markets Systematic roll-out of mono-label franchise partner stores Significant demand from international franchise partners promising material growth

• pportunities

Fast-growing area expansion across domestic and international department stores Significant demand from international wholesale partners promising material growth

• pportunities

Historically established dense distribution network Diminishing in relative importance due to systematic expansion of controlled distribution and conversion of multi-label into SIS Rapid development of recently launched distribution channel Significant Capex-light roll-out opportunities internationally

Attractive growth potential

Multi-channel distribution focused on controlled space driving growth and fostering brand reach

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PoS Number of customer accounts

Controlled distribution

Note: PoS, number of stores and customer accounts as of year-end (31 Dec)

Number of stores

16 46.0 45.4 58.7 48.7 34.4 52.7 2007 2008 2009 Core international (€mm) Other international (€mm) TOM TAILOR COMPANY PRESENTATION

Established international presence Steady internationalisation in core markets Breakdown by region–2009

Germany 69.0% International 31.0%

Total revenues 2009: €300.2mm

Attractive growth potential

Established international footprint as strong base for continuous growth

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Balanced and diversified international brand

reach

Core markets Austria, Benelux, Switzerland

and France accounting for 63.0% of international sales

Controlled expansion in lucrative growth regions



Congruency between market potential and TOM TAILOR brand



Attractive size and growth of middle-income consumer segment



Increase in purchasing power Strategic decision to reduce expansion in Eastern

Europe due to difficult economic environment in FY2009

• Today present in 35 countries
• International brand reach through >360

controlled points-of-sale

91.5 101.3 93.2

20.7% 7.2%

Benelux 18.4% Austria 30.1% Other 37.0% Switzerland 11.3% France 3.3%

17 TOM TAILOR COMPANY PRESENTATION

Significant economies of scale across major group functions, including  IT/Services  Administration

Head office Purchasing

Continuous improvements in purchasing terms as a result of higher order quantities and increased buying power Significant further upside potential from optimised supplier base and higher volumes per supplier

Product development

Significant cost dilution driven by economies of scale in product development

Strong profitability upside

Economies of scale: Cost dilution and positive scale effects driven by revenue growth

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Retail distribution

Significant scale effects resulting from fast-growing store-roll out and e-business Leverage on established retail infrastructure Increased maturity profile of retail operations

Sales organisation wholesale

Optimised sales force capacity utilisation Full benefit of economies of scale as a result of in-sourcing of sales force

18 TOM TAILOR COMPANY PRESENTATION

Strong profitability upside

Structural margin upside potential through systematic retail expansion

Retail/B2C 10.3% Retail/B2C 25.5% Wholesale/B2B 74.5%

2009

Increasing Retail contribution Average Retail store EBITDA margin¹

Wholesale/B2B 89.7%

2007

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Retail–Recurring EBITDA margin Retail–Like-for-like sales growth

12.6% 2.8% 4.6% 14.0% 16.5% 2007 2008 2009 Excluding e-business Including e-business

¹ Pre retail overhead expenses

1.8% 6.3% 12.0% 2007 2008 2009 7.7% 8.3% 12.9% 12.8% 17.0% 16.3% 2007 2008 2009 Stores opened before 1 Jan 07 Stores opened in 2007 Stores opened in 2008

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Launch and development of e-business platform Optimisation of store/shop concept Expansion and optimisation of retail business Systematic expansion of controlled premium floor space through franchise operations

and shop-in-shops

Implementation of EDI/Navision

Modification of product mix

Launch of new product lines Denim Male and Denim Female Repositioning of product line WOMEN Casual

TOM TAILOR COMPANY PRESENTATION

Experienced management team

Business revitalisation since entry of new management as base for systematic and profitable growth

Status

Expansion of controlled space

• 2007
• 2008

Key management initiatives Introduction of divisional structure Insourcing of sales organisation Upgrading of logistics platform Reduction of lead-times in standard processes Streamlining of supplier network Strategic focus on PoS marketing

• 2008
• 2009

In implementation

• 2009
• End of 2006

Improvement of

• rganisational

structure Improvement of

• perational

processes

4

• 2008
• Dec 2006–2008
• 2008
• Continuously
• Continuously
• 2008
• 2010

20 TOM TAILOR COMPANY PRESENTATION

Strong financial momentum

261.3 300.2 283.5 2007 2008 2009

Key historical financials

35.0 37.8 22.1 12.6% 7.8% 13.4% 2007 2008 2009 117.3 137.7 111.3 42.6% 41.4% 45.9% 2007 2008 2009 8.5% 5.9% Resilience to difficult sector trading environment Superior growth momentum,

• utgrowing the European

apparel market Temporary reduction of Eastern European business

Historical performance

Extraordinary circumstances in 2008 as a result of sales force integration Recovery of EBITDA margin 2009 driven by revenue growth and realised efficiency gains Recent improvement in gross margins due to successful implementation of operational initiatives and economies

• f scale

Revenues Gross profit Recurring EBITDA Growth potential

Systematic retail store roll-out (Casual and Denim) Controlled wholesale growth via franchise and SIS network Strong wholesale order book 2010 Fast-growing e-business International expansion in lucrative markets Continued materialisation of

• perational improvements

Scalability of business model and rapid growth allowing degression of overhead costs Fast retail store roll-out Procurement chain efficiencies and better buying terms

(€mm) (€mm) Margin (€mm) Margin

21 TOM TAILOR COMPANY PRESENTATION

Financial snapshot - wholesale

237.5 223.7 234.5 2007 2008 2009 28.9 34.6 18.7 12.9% 14.8% 7.9% 2007 2008 2009 (€mm) Margin

Wholesale–Revenues (€mm) Shop-in-shop format Franchise format Wholesale–Recurring EBITDA

22 TOM TAILOR COMPANY PRESENTATION

Financial snapshot - retail

Retail–Revenues and PoS Casual stores Retail–Recurring EBITDA

76.5 45.9 26.8 87 60 29 2007 2008 2009 Revenues (€mm) Number of PoS 9.2 0.5 2.9 12.0% 6.3% 1.8% 2007 2008 2009 (€mm) Margin CAGR 07-09: 68.8%

Note: PoS exclude e-business

Denim stores

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Use of IPO proceeds: Expansion

Retail store roll-out

TOM TAILOR CASUAL concept

• 200 – 250 sqm net selling

area

• Capex approx. 900 €/sqm
• Inventory level 40-60k EUR

TOM TAILOR DENIM concept

• 150 - 200 sqm net selling

area

• Capex 900 €/sqm
• Inventory level 40-60k EUR

Funding of Shop-In-Shop expansion

30-50 sqm net selling area up to 350€/sqm contribution

60 – 70 stores p.a. 200 - 300 SIS

TOM TAILOR COMPANY PRESENTATION

p.a. all divisions

24 TOM TAILOR COMPANY PRESENTATION

Investment highlights–A proven business concept with a strategy for systematic and profitable growth

Vertical system-supplier

• f lifestyle

fashion Attractive growth potential Strong profitability upside Experienced management team

• Lean and vertical business model with full information control over entire

value chain

• Fashion follower approach with 12 collections per year minimising fashion risk
• Strong growth potential across product divisions
• Multi-channel distribution focused on controlled space driving growth and

fostering brand reach

• Strong economies of scale effects
• Structural margin upside potential through systematic retail expansion
• Business revitalisation since entry of new management as base for

systematic and profitable growth

• Long-standing industry experience and track record at leading apparel players

1 2 3 4

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Financial highlights Q2 2010

• 1. Increase of consolidated net revenues + 13.6 %

Q2 2010: €70.9 mm Q2 2009: €62.4 mm

• 2. Like-for-like growth own operated retail stores + 5.8 %

(including e-Shop + 14.2%)

• 3. Increase of gross margin + 3.2%-points

Q2 2010: 47.6 % Q2 2009: 44.4 %

• 4. Strong increase of adjusted EBITDA

Q2 2010: €3.6 mm Q2 2009: €-0.6 mm

• 5. Increase of adjusted net income of + 83.5%

Q2 2010: €-1.4 mm Q2 2009: €-8.6 mm

TOM TAILOR COMPANY PRESENTATION

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Financial highlights H1 2010

• 1. Increase of consolidated net revenues + 9.9 %

H1 2010: €147.3 mm H1 2009: €134.0 mm

• 2. Like-for-like growth own operated retail stores + 5.8 %

(including e-Shop + 14.1%)

• 3. Increase of gross margin + 2.8%-points

H1 2010: 47.3 % H1 2009: 44.5 %

• 4. Increase of adjusted EBITDA of + 73.9%

H1 2010: €13.5 mm H1 2009: €7.7 mm

• 5. Increase of adjusted net income of + 70.4%

H1 2010: €-3.4 mm H1 2009: €-11.4 mm

TOM TAILOR COMPANY PRESENTATION

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+ 132 Shop- In-Shops

Focus on controlled distribution areas

Retail Franchise Multi-label E-business

96 own operated stores across Europe 205 across Europe 1,240 across Europe ~4,500 worldwide www.tom-tailor.de www.tom-tailor.at www.tom-tailor.nl PoS

(as of June 30, 2010) Controlled distribution

+ 9 stores Continuing Revenue Share (RS) store growth > 40% to prior year Highlights

Retail / B2C Wholesale / B2B

Shop-In-Shop

Number of POS remains stable

TOM TAILOR COMPANY PRESENTATION

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Split up of net revenues H1 2010

Strong international presence

Domestic 70% International 30%

Multi-channel distribution

Wholesale/B2B 71% Retail/B2C 29%

Balanced product portfolio

MEN 38% WOMEN 32% KIDS & MINIS 13% Denim Male 9% Licenses and other 2%

Total revenues H1 2010: € 147.3mm

Denim Female 6%

Casual 83% Denim 15%

Concentration on Core markets

Core markets* 90% H1 2010 H1 2009 Retail/B2C 23% Wholesale/B2B 77% Other markets 10% Core markets* 91% Other markets 9% H1 2010 H1 2009

Total revenues H1 2010: € 147.3 mm Total revenues H1 2010: € 147.3 mm Total revenues H1 2010: € 147.3 mm

*Core Markets: Germany, Austria, Switzerland, the Benelux countries, France TOM TAILOR COMPANY PRESENTATION

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Consolidated Profit & Loss account

Key financials H1 2010

13,5

7,7

5,80% 9,10%

H 1 2009 H 1 2010

Revenues Gross profit Adjusted EBITDA

147,3 134,0

H 1 2009 H 1 2010

9.9%

(€mm) (€mm) Margin (€mm) Margin

69,6

59,6

47,3% 44,5%

H 1 2009 H 1 2010

16.8% 73.9%

• 3,4
• 11,4

H 1 2009 H 1 2010

Adjusted Net Income

(€mm)

70.4%

Key financials Q2 2010

• 0,6

3,6

Q 2 2009 Q2 2010 Revenues Gross profit Adjusted EBITDA

70,9

62,4 Q 2 2009 Q2 2010 13,6%

(€mm) (€mm) Margin (€mm) Margin: -0.9%

33,7 27,7

47,6% 44,4%

Q 2 2009 Q 2 2010

21,7%

• 1,4
• 8,6

Q 2 2009 Q 2 2010

Adjusted Net Income

(€mm)

83.5%

Margin: 5.1%

TOM TAILOR COMPANY PRESENTATION

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103.7 104.9 H 1 2009 H1 2010

Profit & Loss account segment wholesale

Key financials H1 2010

6.0 10.610.1% 5.8% H 1 2009 H1 2010

1.2%

Revenues Gross profit Adjusted EBITDA Comments

Controlled wholesale growth via franchise and SIS network in core markets Economies of scale lead to a better cost dilution Further improvements in product development and procurement chains efficiency Realization of economies of scale

(€mm) (€mm) Margin (€mm) Margin

40.9 43.7 41.6% 39.4% H 1 2009 H1 2010

6.8% 76.6%

TOM TAILOR COMPANY PRESENTATION

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30.3 42.3 H 1 2009 H1 2010

Profit & Loss account segment retail

Key financials H1 2010

1.7 2.9 6.9% 5.7% H 1 2009 H1 2010

39.8%

Revenues Gross profit EBITDA Comments

Systematic retail store roll-out (Casual and Denim) Fast-growing e-business: increase to PY >40%; as of total retail revenues 23% Economies of scale lead to a better overhead cost dilution Stable gross margin development

(€mm) (€mm) Margin (€mm) Margin

25,9 18,7 H 1 2009 H1 2010

38,5% 68.6% 61.8% 61.3%

TOM TAILOR COMPANY PRESENTATION

32

Retail/B2C 23 % Retail/B2C 29 % Wholesale/B2B 71 %

H1 2010

Increasing Retail contribution

Wholesale/B2B 77 %

H1 2009

Retail–Like-for-like sales growth

5.8% 5.8% 14.2% 13,9% Q 1 2010 Q 2 2010 Ex cluding e-business Including e-business

Accelerated Retail store roll out will start in Q3/2010: 23 new stores openings for H2 2010 are already signed

Snapshot segment retail H1 2010

TOM TAILOR COMPANY PRESENTATION

33

Reconciliation to adjusted net income

Reconciliation

Reported Net Income for the period

• 13.651

Adjustments EBITDA IPO costs 6.384 Release of former transaction cost 3.405 PPA amortisation 4.032 Other one-time effects 875 14.696 30% tax shield on adjustments

• 4.409

Adjusted Net Income for the period

• 3.364

H1 2010 KEUR

• 13.645

4.032

• 800

3.232

• 970
• 11.383

H1 2009 KEUR

TOM TAILOR COMPANY PRESENTATION

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Preview H2 2010

LFL increase in July 22.2% and including e-business 38.4% 23 new Retail Store contracts have already been concluded for H2 2010 i.e. Berlin, Frankfurt, Zurich, Kiel, Nordhorn Further roll out of controlled sales areas: around 150 SIS in July and August Increase in net income

Retail Wholesale

TOM TAILOR COMPANY PRESENTATION 34

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Backup

TOM TAILOR COMPANY PRESENTATION

36 TOM TAILOR COMPANY PRESENTATION

Annual balance sheet

Assets Equity and liabilities Recapitalisation 2006

(€mm, Dec Y/E) 2007 2008 2009 Intangible assets 145.9 147.1 139.9 Tangible assets 9.6 19.6 19.9 Inventories 30.9 30.8 31.4 Trade receivables 31.1 37.4 33.4 Cash and short-term deposits 7.9 11.4 14.1 Other assets 6.0 6.4 11.4 Total assets 231.4 252.8 250.1 (€mm, Dec Y/E) 2007 2008 2009 Total equity (52.0) (62.5) (68.2) Financial liabilities 182.3 201.8 198.0 Pensions 0.2 0.2 0.2 Deferred tax liabilities 40.8 36.6 34.3 Provisions 15.3 14.5 13.5 Deferred income 0.0 5.9 5.1 Trade payables 39.8 44.7 50.9 Current income tax liabilities 1.2 0.8 5.7 Other liabilities 3.7 10.9 10.6 Total liabilities 283.4 315.3 318.3 Total equity and liabilities 231.4 252.8 250.1 Negative balance of total equity due to the recapitalisation of TOM TAILOR in December 2006 Recapitalisation classified as “business combination under common control” according to IFRS 3. Consequently, a step-up of hidden reserves was not

realised under IFRS and the amounts distributed to shareholders decreased the group equity (positive equity under German HGB resulting from the additional step-up in the course of the recapitalisation)

As a result, net loss in FY2006 amounted to €107.2mm

37 TOM TAILOR COMPANY PRESENTATION

Annual income statement

(€mm, Dec Y/E) 2007 2008 2009 Revenues 261.3 283.5 300.2 % growth 8.5% 5.9% Material expenses (150.0) (166.2) (162.5) Gross profit 111.3 117.3 137.7 % margin 42.6% 41.4% 45.9% Other operating income 8.5 10.2 12.8 Personnel expenses (31.0) (39.6) (41.3) Other operating expenses (61.8) (77.0) (72.3) Reported EBITDA 27.0 10.9 37.0 % margin 10.3% 3.9% 12.3% Depreciation and amortisation (13.7) (18.2) (21.1) Reported EBIT 13.2 (7.3) 15.9 Financial result (14.9) (21.7) (17.7) EBT (1.7) (29.0) (1.8) Income taxes 14.4 3.7 (3.8) Net result 12.8 (25.3) (5.6)

Summary income statement

38 TOM TAILOR COMPANY PRESENTATION

Annual cash flow statement

(€mm, Dec Y/E) 2007 2008 2009 Net result 12.8 (25.3) (5.6) Depreciation and amortisation 13.7 18.2 21.1 Change of long-term provisions (1.1) (0.1) (0.1) Cash flow 25.4 (7.3) 15.3 Interest on shareholder's loan 3.1 2.7 2.2 PIK interest on Mezzanine financing 1.3 1.6 1.9 Change of deferred taxes (16.8) 0.5 (1.9) Change of short-term provisions 6.3 (0.7) (0.9) Gain/loss on the disposal of fixed assets 0.0 (0.2) (0.2) Change of inventories (9.9) 0.0 (0.6) Change of receivables and other assets (15.0) (6.3) (1.4) Change of payables and other liabilities 14.9 12.5 10.1 Other non-cash items 0.0 (0.1) 0.2 Operating cash flow 9.3 2.7 24.7 Purchases of fixed assets (7.9) (23.7) (11.5) Proceeds from the sale or disposal of fixed assets 0.1 0.2 0.2 Investing cash flow (7.8) (23.5) (11.3) Change in equity due to payments to and from shareholders 0.0 15.0 0.0 Change in debt due to payments to and from shareholders 0.0 0.0 9.0 Change of financial liabilities (6.4) 9.3 (19.7) Financing cash flow (6.4) 24.3 (10.7) Currency effects (0.0) 0.1 0.0 Net change in cash (4.9) 3.6 2.6

39 TOM TAILOR COMPANY PRESENTATION

Assets Equity and liabilities

(€mm)

• Dec. 31, 2009

J une 30, 2010 Intangible assets 139.9 136.5 Tangible assets 19.9 23.3 Deferred income tax 0.3 0.8 Inventories 31.4 42.9 Trade receivables 33.4 41.4 Income tax receivable 0.4 0.7 Other assets 5.1 3.9 C ash and short-term deposits 14.1 13.9 Prepaid assets 5.6 6.2 Total assets 250.1 269.8 (€mm)

• Dec. 31, 2009

June 30, 2010 Total equity (68.2) 81.3 Financial liabilities 198.0 71.6 Pensions 0.2 0.2 Deferred tax liabilities 34.3 33.5 Provisions 13.5 13.8 Deferred income 5.1 4.5 Trade payables 50.9 52.7 C urrent income tax liabilities 5.7 5.7 Other liabilities 10.6 6.4 Total liabilities 318.3 188.4 Total equity and liabilities 250.1 269.8

H1 balance sheet

40 TOM TAILOR COMPANY PRESENTATION

H1 income statement

(€mm) H1 2009 H1 2010 Revenues 134.0 147.3 % growth 9.9% Material expenses (74.4) (77.7) Gros s profit 59.6 69.6 % margin 44.5% 47.3% Other operating income 6.4 7.2 Personnel expenses (21.0) (26.8) Other operating expenses (36.4) (43.8) Adjusted E BITDA* 7.7 13.5 % margin 5.8% 9.1% Depreciation and amortization (excluding PPA) (6.2) (6.4) Adjusted E BIT* 1.5 7.1 Financial result** (10.5) (5.3) Adjusted E BT* (9.0) 1.8 Income taxes (without tax shield 30% ) (1.4) (0.7) Adjusted net result*** (incl. tax shield 30% ) (11.4) (3.4)

Summary income statement

*7.3m one time effects mainly for IPO **3.4m one time effects for restructuring

• f financial liabilites

***10.3m total non-recurring

• ne time effects

41 TOM TAILOR COMPANY PRESENTATION

H1 cash flow statement

(€mm) H1 2009 H1 2010 Net result (13.6) (13.7) Depreciation and amortisation 10.2 10.5 Income tax expense / income 1.4 0.6 Interest income and expenses 10.5 8.7 Change in non-current provisions 0.0 0.0 Change in current provisions (4.9) (1.0) Loss/gain on the disposal of fixed assets (0.2) 0.0 Change in inventory (1.7) (11.5) Change in receivables and other assets (1.4) (7.4) Change in liabilities and other assets (2.8) (0.8) Income taxes paid / received 0.9 (0.3) Other non-cash changes (1.0) (2.7) Net cash flow from (used in) operating activities (2.5) (17.4) Interest paid (4.3) (4.7) Interest received 0.0 0.0 Net cash flow from (used in) current activities (6.9) (22.1) Capital expenditures (10.1) (10.0) Proceeds from disposal of fixed assets 0.2 0.0 Net cash flow from (used in) investing activities (9.9) (10.0) IPO proceeds 0.0 143.0 Transaction costs due to IPO 0.0 (6.6) Repayment of shareholder loans 0.0 (32.6) Change in current financing liabilities 10.3 (6.0) Long-term financing liabilities 2.2 0.5 Repayment of long-term financing liabilities (2.5) (66.4) Net cash flow from financing activities 10.0 31.9 Effect of exchange rate changes 0.0 0.0 Change in cash and cash equivalents (6.8) 0.2 Cash and cash equivalents at beginning of period 11.4 14.1 Cash and cash equivalents at end of period 4.7 13.9

42 TOM TAILOR COMPANY PRESENTATION

International wholesale footprint

Wholesale operations

PoS and showrooms as of June 30, 2010 SIS = Shop-in-shop Germany Format PoS Franchise: 48 SIS: 1022 Showrooms: 7 Austria Format PoS Franchise: 34 SIS: 33 Showrooms: 2 Benelux Format PoS Franchise: 10 SIS: 26 Showrooms: 2 Switzerland Format PoS Franchise: 9 SIS: 93 Showrooms: 1 France Format PoS Franchise: 6 SIS: 21 Showrooms: 1

Broad international distribution network Stable and highly visible performance as a result of established pre-order system

Russia Format PoS Franchise: 20 SIS: 4 Showrooms: 1 Bulgaria Format PoS Franchise: 3 Slovenia Format PoS Franchise: 9 Showrooms: 1 Croatia Format PoS Franchise: 9 Showrooms: 1 Other Format PoS Franchise: 57 SIS: 41 Showrooms: 9 TOM TAILOR regional wholesale operations TOM TAILOR core markets

43 TOM TAILOR COMPANY PRESENTATION

International retail footprint

Retail operations

Netherlands PoS Full price 2 Outlet 2 e-shop 1 Market entry 2008 France PoS Outlet 1 Market entry 2009 Belgium PoS Full price 2 Outlet 1 Market entry 2009 Switzerland PoS Full price 3 Outlet 1 Market entry 2003 Italy PoS Outlet 2 Market entry 2009 Czech Republic PoS Outlet 3 Market entry 2009 Austria PoS Full price 15 Outlet 3 e-shop 1 Market entry 2004 PoS as of June 30, 2010 ¹ Joint venture Ireland¹ PoS Full price 2 Market entry 2009 Northern Ireland¹ PoS Outlet 1 Market entry 2008 TOM TAILOR regional wholesale operations TOM TAILOR core markets Germany PoS Full price 45 Outlet 16 e-shop 1 e-coop 2 Market entry 2002

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