DGAP-News: TOM TAILOR Holding AG

DGAP-News: TOM TAILOR GROUP addresses structural change and continues with measures to drive efficiency

DGAP-News: TOM TAILOR Holding AG / Key word(s): Half Year Results TOM TAILOR GROUP addresses structural change and continues with measures to drive efficiency

11.08.2016 / 07:30 The issuer is solely responsible for the content of this announcement.

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TOM TAILOR GROUP addresses structural change and continues with measures to drive efficiency

- Group sales up by 2.2% in the first half of the year to EUR 451.3 million

- New stores and retail spaces generate sales growth for TOM TAILOR brand: retail sales up by 9.3% and wholesale by 2.4%

- Recurring EBITDA for the Group was EUR 23.5 million (previous year: EUR 26.3 million).

- Efforts to enhance efficiency and link stationary trade with e-commerce continued

- Guidance for fiscal year 2016 confirmed

Hamburg, 11 August 2016. Despite a challenging market environment, the TOM TAILOR GROUP achieved a slight rise in sales in the second quarter of the fiscal year 2016. In the first half, sales increased 2.2% to EUR 451.3 million (previous year: EUR 441.5 million). The growth was driven by the TOM TAILOR brand, which posted gains in both the retail and wholesale segments. Through the end of the reporting period, recurring earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 23.5 million (previous year: EUR 26.3 million).

"In the second quarter we continued to pursue the implementation of our efficiency program and the verticalization of our business. The structural transformation continues and requires us to streamline our business processes, interlink our stationary retail and e-commerce business and provide our customers with the best possible service. We will continue to focus on our initiatives in the second half of the year so as to increase our competitiveness and significantly drive our profitability," said Dieter Holzer, the CEO of TOM TAILOR Holding AG.

Among the projects successfully implemented in the first half of the year was the expansion of the successful cooperation with the online retailer Zalando, including the launch of the TOM TAILOR brand shop on the Zalando platform. In addition, the Company rolled out the Click&Collect service in Germany, which enables customers to order products online and pick them up at a store of their choice. The focus of the CORE efficiency program is, apart from renegotiating leases and closing stores, on new agreements on freight and mailing charges. The BONITA team streamlined its sales organization and has made good progress in refocusing its product line. Since the beginning of the third quarter, the first collections are available on our sales areas.

Sales up for TOM TAILOR umbrella brand

TOM TAILOR Retail posted a substantial 10% increase in sales in the second quarter to EUR 74.0 million (previous year: EUR 67.3 million). First-half sales rose by 9.3% to EUR 137.8 million (previous year: EUR 126.1 million) in the retail business, mainly as a result of the expansion of sales space. Since the end of 2015, the number of stores has increased by just eight to 468 (30 June 2015: 405). On a like-for-like basis, sales in the first half of the year were 1.8% lower than in the same period a year earlier and thus moved in line with market trend, which saw an overall 2% decline in stationary sales. The TOM TAILOR Retail segment accounted for 30.5% of Group sales (previous year: 28.6%).

TOM TAILOR Wholesale, with a 1.4% increase in sales in the second quarter to EUR 72.8 million (previous year: EUR 71.8 million), did not quite match the pace set in the first quarter. The wholesale segment increased its sales in the first half by 2.4% to EUR 160.1 million (previous year: EUR 156.3 million). Since the end of 2015, the number of shop-in-shop spaces has increased by 189 to 3,145 (30 June 2015: 2,762), while the number of franchise stores rose by three to 206. TOM TAILOR Wholesale contributed 35.5% to Group sales (previous year: 35.4%).

After the difficult start to the year, the BONITA brand regained some momentum in the second quarter. However, sales were with 1.2% slightly down year-on-year to EUR 85.6 million (previous year: EUR 86.7 million). In the first half of the year, Group sales decreased by 3.5% to EUR 153.4 million (previous year: EUR 159.0 million). On a like-for-like basis, sales declined by 3.4%. In the review of the store network, the Group has decreased the number of BONITA stores since the end of 2015 by 15 to 1,011. BONITA accounted for a 34.0% share of Group sales (previous year: 36.0%).

Income situation reflects expansion in retail space and one-time effects

Despite higher material expenses, gross profits rose by 1.5% in the first half of 2016 to EUR 256.3 million (previous year: EUR 252.5 million). This led to a slight decrease in the gross profit margin to 56.8% (previous year: 57.2%). Recurring EBITDA amounted to EUR 23.5 million (previous year: EUR 26.3 million), and the recurring EBITDA margin stood at 5.2 % (previous year: 6.0 %). The main reasons for the decline as compared to the first half of 2015 were the higher personnel expenses combined with the expansion of retail space. The adjustments relate mainly to one-off items in connection with the CORE cost-cutting and efficiency program. The reported Group EBITDA was EUR 18.9 million (previous year: EUR 24.0 million) and the reported EBITDA margin was 4.2% (previous year: 5.4 %).

Recurring EBITDA for the reporting period decreased to EUR -3.9 million (previous year: EUR -2.4 million), which resulted in recurring earnings per share of EUR -0.21 (previous year: EUR -0.16). Reported EBITDA for the period under review amounted to EUR -10.7 million (previous year: EUR -8.2 million). Reported earnings per share amounted to EUR -0.47 (previous year: EUR -0.39).

Cash flow from operating activities declined by EUR 11.7 million in the first half of the year to EUR -6.0 million (previous year: EUR 5.7 million), mainly owing to the increase in net working capital due to higher inventories and a decrease in trade payables. In the second quarter, the cash flow, at EUR 14.0 million, was at the previous year's level.

In the first half, the TOM TAILOR GROUP made investments of EUR 7.8 million (previous year: EUR 17.3 million) in sales space and the IT infrastructure. Free cash flow was EUR -20.0 million (previous year: EUR -15.5 million).

Net debt increased to EUR 239.0 million as at 30 June 2016 (30 June 2015: EUR 231.9 million). The equity ratio at the end of the first half of the year was 26.7 % (30 June 2015: 28.1 %).

Second half: focus on further cost reductions and efficiency gains

The TOM TAILOR GROUP expects the fast-paced structural change in the textile industry to continue in the coming quarters. This will result in both challenges and opportunities. Against this backdrop, the Group will remain committed to the initiatives under the CORE cost-cutting and efficiency program. The goal is to reduce costs significantly, drive efficiency and noticeably improve the link between stationary retail and e- commerce.

For the full year, the TOM TAILOR GROUP anticipates a moderate year-on-year sales increase in the low single digits. The company expects the CORE and POLE Position programs to begin impacting earnings for the first time as of the end of the current fiscal year. Consequently, the Management Board expects recurring EBITDA for 2016 to match the previous year's level.



KEY FIGURES Q2 2016 Q2 2015 Change in H1 2016 H1 2015 Change in FOR THE GROUP % % in EUR million

Sales 232.4 225.7 3.0 451.3 441.5 2.2 TOM TAILOR 74.0 67.3 10.0 137.8 126.1 9.3 retail BONITA 85.6 86.7 -1.2 153.4 159.0 -3.5 TOM TAILOR 72.8 71.8 1.4 160.1 156.3 2.4 wholesale

Gross profit 140.0 133.3 5.1 256.3 252.5 1.5 Gross profit 60.2 59.0 56.8 57.2 margin in %

Recurring 15.5 17.2 -10.5 23.5 26.3 -10.6 EBITDA Recurring 6.6 7.6 5.2 6.0 EBITDA margin in % One-off items 2.9 1.0 184.0 4.7 2.3 105.6 EBITDA 12.5 16.2 -22.5 18.9 24.0 -21.5 EBITDA margin 5.4 7.2 4.2 5.4 in %

Recurring net 1.9 1.6 18.3 -3.9 -2.4 -61.4 result for the period Recurring 0.05 0.03 87.0 -0.21 -0.16 -30.9 earnings per share (in EUR) One-off items 3.8 2.9 30.8 6.8 5.8 16.8 including deferred taxes Net result -1.9 -1.3 -45.8 -10.7 -8.2 -29.9 for the period Earnings per -0.10 -0.09 -14.3 -0.47 -0.39 -22.7 share (in EUR)

Cash flow 14.0 14.0 0.0 -6.0 5.7 -205.2 from operating activities Cash flow -5.2 -7.3 28.8 -7.3 -14.7 50.4 from investing activities





30.06.2016 30.06.2015 Change in % Total assets 781.5 797.8 -2.0 Equity 208.9 224.5 -6.9 Equity ratio (in %) 26.7 28.1 Cash and cash equivalents 34.7 45.2 -23.2 Net debt 239.0 231.9 3.1





Points of sale 30.06.2015 30.06.2016 Absolute change Retail stores 1,479 1,423 56 Franchise stores 206 209 -3 Shop-in-shops 3,156 2,762 394



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 June 2016, these comprised 468 TOM TAILOR stores and 206 franchise stores, 3,145 shop-in-shops and around 8,400 multi-label points of sale. The brand is present in more than 40 countries.

BONITA has more than 1,011 retail stores and now has more than eleven 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

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11.08.2016 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, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------

491383 11.08.2016