DGAP-News: TOM TAILOR Holding AG

DGAP-News: TOM TAILOR GROUP confirms figures for the fiscal year 2015 and steps up strategic realignment

DGAP-News: TOM TAILOR Holding AG / Key word(s): Final Results/Development of Sales TOM TAILOR GROUP confirms figures for the fiscal year 2015 and steps up strategic realignment

17.03.2016 / 07:30 The issuer is solely responsible for the content of this announcement.

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- Group exceeds sales forecasts with 2.5% increase to EUR 955.9 million

- Growth in all segments: TOM TAILOR Wholesale 2.8%; TOM TAILOR Retail 4.9%; BONITA 0.3%

- Recurring EBITDA for the Group in target corridor at EUR 76.3 million

- Recurring net income of EUR 14.3 million; reported net income of EUR 0.1 million

- Group free cash flow of EUR 13.1 million

- Gains in profitability and efficiency with focus on core markets and core brands

Hamburg, 17 March 2016. By presenting its figures for the fiscal year 2015, the TOM TAILOR GROUP today confirms its preliminary results released on 23 February 2016. With a 2.5% increase in sales to EUR 955.9 million (previous year: EUR 932.1 million), the TOM TAILOR GROUP exceeded the refined sales forecast of EUR 945-955 million announced in September 2015. Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) for the year, at EUR 76.3 million, were within the target corridor. In the current fiscal year, the TOM TAILOR GROUP will accelerate its initiated strategic realignment that is based on the two fundamental programs "POLE POSITION" and "CORE". Key purpose of the project POLE POSITION is the acceleration of the Group's verticalization and digitalization. CORE is a cost cutting and efficiency program which aims at strengthening the profitability.

"The textile industry is undergoing rapid change. Digitalization is opening up whole new worlds for product and service offerings. At the same time, shopping habits are changing and buying decisions become more spontaneous. After years of strong growth, the TOM TAILOR GROUP has entered a phase of focusing. We began responding to the changes in 2015 and plan to take a step-by-step approach in implementing the launched measures. We have complete confidence that by taking these actions we will improve our profitability and competitiveness in the long term," said Dieter Holzer, CEO of TOM TAILOR Holding AG.

Sales growth in a stagnating market

The TOM TAILOR GROUP increased sales in all segments and thus outperformed the overall German textile market, where sales were generally flat in 2015 (Source: TW-Testclub 1B/2016). The Group's growth was driven by the TOM TAILOR umbrella brand, with a 3.8% increase in sales to EUR 630.0 million.

The sales of TOM TAILOR Wholesale were up by 2.8% in the year under review to EUR 341.0 million (previous year: EUR 331.7 million). The segment experienced a healthy trend in the first half of the year that slowed down in the third quarter due to shipping delays experienced as the new third-party-operated logistics center went into operation. The fourth quarter again saw a substantial 8.5% increase in sales. Since the start of the year under review, the number of shop-in-shop spaces has increased substantially by 270 to 2,956. Meanwhile, the number of franchise shops decreased by three to 203, mainly through the absorption of shops into the Group's own retail organization.

After a relatively slow start in 2015, the retail business of the TOM TAILOR brand posted gains in sales in every quarter and in the fourth quarter achieved an increase of 8.2%. The brand's retail sales thus increased by 4.9% for the entire year to EUR 289.1 million (previous year: EUR 275.5 million). The number of TOM TAILOR Retail stores increased by 78 to 460 as compared with 2014.

Sales for the BONITA umbrella brand increased slightly to EUR 325.8 million (previous year: EUR 324.9 million). BONITA thus accounted for a 34.1% share of Group sales (previous year: 34.9%). The number of BONITA stores increased by 13 to 1,026.

Earnings development reflects one-time effects

Gross profits increased to EUR 535.3 million (previous year: EUR 531.8 million). The gross profit margin was down slightly to 56.0% (previous year: 57.0%), mainly due to targeted product investments for BONITA. At 66.2% the gross profit margin of BONITA remained however at a very healthy level (previous year: 68.1%).

Recurring EBITDA for the Group was EUR 76.3 million (previous year: EUR 87.2 million) and was thus within the target range. The recurring EBITDA margin was 8.0% (previous year: 9.4%). Profits were negatively impacted by expenditures to increase retail space and the temporary delivery problems experienced in the start-up phase of the new third-party-operated logistics center. Without these non-recurring effects, recurring EBITDA was EUR 81.4 million with an EBITDA margin of 8.5%. Reported EBITDA amounted to EUR 67.6 million (previous year: EUR 84.3 million). The reported EBITDA margin was 7.1% (previous year: 9.0%).

Positive net income despite increased costs for strategic realignment

Despite expenses for launching the strategic realignment programs, the TOM TAILOR GROUP reports a positive net income for the year under review. The reported net income for the period was EUR 0.1 million (previous year: EUR 10.8 million), while the recurring net income came in at EUR 14.3 million (previous year: EUR 21.1 million). This resulted in recurring earnings per share (EPS) of EUR 0.37 (previous year: EUR 0.68), and reported EPS of EUR -0.18 (previous year: EUR 0.28).

Group achieves free cash flow of EUR 13.1 million

Cash flow from operating activities decreased to EUR 49.3 million (previous year: EUR 70.3 million), mainly as a result of the lower net result. Despite large investments, the TOM TAILOR GROUP achieved a positive free cash flow (defined as cash flow from operations less investments and interest expenses) amounting to EUR 13.1 million (previous year: EUR 37.8 million).

Net debt at year-end came in higher as compared to the prior year period, at EUR 217.4 million (previous year: EUR 202.9 million). This primarily reflected the increased utilization of long-term credit facilities and high investments. The equity ratio was 27.4% (31 December 2014: 30.3%).

Outlook for 2016: Focus on increased productivity for retail space and reduced costs

Rapid structural changes in the textile industry will continue in 2016. With the project POLE POSITION and the CORE program, the Group has laid the foundation for addressing these changes in a targeted and consistent manner. The aims of the related initiatives are to increase the productivity of retail space, accelerate processes, improve efficiency and, above all, to lower the cost base. In particular this will be achieved by decreasing personnel costs and optimizing all material costs, including those for rent, freight and logistics. Consequently, the Company will review its existing store network and slow down the expansion of retail space. It plans to close 80 to 100 stores in 2016, while opening up to 30 new locations. In response to the increasing importance of e-commerce, the Group plans to accelerate the expansion of its online sales and services and to coordinate its stationary sales activities more closely with its e-commerce offerings.

Assuming a strong dynamic in the core markets and with the strategic realignment going ahead, the Management Board expects to achieve a moderate increase in Group sales in the current fiscal year. On the income side, the two programs the Group has launched are expected to begin generating positive results from the end of 2016, with their full impact being felt by the end of 2018. Consequently, the Management Board expects recurring EBITDA to remain steady in 2016.



KEY FIGURES FOR THE GROUP in EUR million 2015 2014 Change in %

Sales 955.9 932.1 2.5 TOM TAILOR Retail 289.1 275.5 4.9 TOM TAILOR Wholesale 341.0 331.7 2.8 BONITA 325.8 324.9 0.3

Gross profit 535.3 531.8 0.7 Gross profit margin in % 56.0 57.0

Recurring EBITDA 76.3 87.2 -12.5 Recurring EBITDA margin in % 8.0 9.4 One-off items 8.7 3.0 EBITDA 67.6 84.3 -19.8 EBITDA margin in % 7.1 9.0

Recurring net result for the period 14.3 21.1 -32.3 Adjusted earnings per share (in EUR) 0.37 0.68 -45.1 One-off items including deferred taxes 14.2 10.4 37.4 Net result for the period 0.1 10.8 -99.3 Earnings per share (in EUR) -0.18 0.28 >-100

Cash flow from operating activities 49.3 70.3 -30.0 Cash flow from investments -24.9 -20.5 -21.5





31.12.2015 31.12.2014 Change in % Equity 225.5 239.2 -5.7 Equity ratio (in %) 27.4 30.3 Cash and cash equivalents 50.5 36.9 36.8 Net debt 217.4 202.9 7.1 Net debt / recurring EBITDA 2.8 2.3





Points of sale 31.12.2015 31.12.2014 Absolute change Retail stores 1,486 1,395 91 Franchise stores 203 206 -3 Shop-in-shops 2,956 2,686 270





About TOM TAILOR GROUP

TOM TAILOR GROUP is an international fashion and lifestyle company offering stylish apparel and accessories in the medium price range through its umbrella brands TOM TAILOR and BONITA. The TOM TAILOR umbrella brand comprises the brands TOM TAILOR, TOM TAILOR Denim, and TOM TAILOR CONTEMPORARY Women. These high-quality collections are aimed at customers between 0 and 40. BONITA, one of Germany's leading fashion brand producers and retailers, has been a part of the TOM TAILOR GROUP since August 2012. BONITA sells menswear and womenswear collections for the over-40 age group.

The TOM TAILOR brand is marketed through the retail and wholesale segments, and thus through single-label stores as well as wholesale partners. At the end of December 2015, these comprised 460 TOM TAILOR stores and 203 franchise stores, 2,956 shop-in-shops and around 8,400 multi-label points of sale. The brand is present in more than 35 countries.

BONITA has more than 1,026 retail stores and now has more than eight shop-in-shop spaces.

The collections of both brands are also available through their respective online shops.

Further information is also available at www.tom-tailor-group.com and www.bonita.eu



Media and investor contact

Felix Zander Head of Investor Relations & Corporate Communications TOM TAILOR GROUP Phone: +49 (0) 40 58956-449 E-Mail: felix.zander@tom-tailor.com

Erika Kirsten Manager Corporate Communications TOM TAILOR GROUP Phone: +49 (0) 40 58956-420 Email: erika.kirsten@tom-tailor.com

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17.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Language: English Company: TOM TAILOR Holding AG Garstedter Weg 14 22453 Hamburg Germany Phone: +49 (0) 40 589 56 0 Fax: +49 (0) 40 589 56 398 E-mail: info@tom-tailor.com Internet: www.tom-tailor-group.com ISIN: DE000A0STST2 WKN: A0STST Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Dusseldorf, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP News Service ---------------------------------------------------------------------------

446055 17.03.2016