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1 ANALYST PRESENTATION – 9M 2011 November 9, 2011

ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Page 1: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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ANALYST PRESENTATION – 9M 2011November 9, 2011

Page 2: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Disclaimer

This document contains forward-looking statements, which are based on the current estimates and assumptions by the management of TOM TAILOR Holding AG. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by TOM TAILOR Holding AG and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside TOM TAILOR Holding AG’s control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. TOM TAILOR Holding AG neither plans nor undertakes to update any forward-looking statements.

Page 3: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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9M 2011 development at a glance: Profitable growths continues

Sales increased by 19% to € 295.3m in 9M; Retail segment grows lfl 5.4% and significantly outperforms the German textile market (-1%)

Expansion of controlled distribution areas well on track

Gross margin increased up to 47.2% in 9M (+110 bps vs. last year´s period)

Recurring EBITDA reached €27.2 m in 9M (€29.3 m)

Outlook for 2011 confirmed assuming consumer confidence remains robust in Q4 2011

Page 4: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Sales overview: growth driven by expansion in the Retail-Segment

Comments

¢Share of international sales reaches 34.8% following 30.9% in 9M 2010

¢Solid growth in all relevant markets

¢63 additional retail stores in 9M 2011

¢Sales increase by 46.1% in Q3 despite strong comparative figures and adverse weather conditions

¢Retail represents 35% of Group sales

¢ Lfl growth of 5.4% in 9M 2011 (market average: -1%)

¢Wholesales sales in Russia confirms new strategy in this region € 8.1m in 9M (+ 62.4%)

¢Wholesale represents 65% of Group sales

+ 18.7%

Sales development TOM TAILOR Group

(€m)

248.8

9M 2010 9M 2011

295.3

+ 7.2%

Sales development Wholesale

(€m)

179.6

9M 2010 9M 2011

192.5

+ 48.6%

Sales development Retail

(€m)

69.2

9M 2010 9M 2011

102.8

Page 5: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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+ 285 shop-in-shopsversusDec. 31, 2010

Retail Franchise Multi-labelE-commerce

221 in Europe 155 in Europe 1.726 in Europe ~6.000 worldwide

tom-tailor.de

tom-tailor.at

tom-tailor.nl

POS (as of Sept. 30, 2011)

Controlled

distribution

+ 63 stores

versus

Dec. 31, 2010

15 store openings

Opening of

tom-tailor.be

tom-tailor.fr

Highlights

9M 2011

Retail / B2C Wholesale / B2B

Shop-in-shops

Number of POS

remains stable

Expansion of controlled distribution areas well on track

60-70 new stores 20-25 new stores200-250 new shop-

in-shops

Figure to remain

stable

Further expansion to

strengthen e-

commerce presenceTarget 2011

Page 6: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

│6Source: Spiegel Outfit study 7.0 (2011); Spiegel Outfit study 6 (2007)

79

87

71

88

78

87

91

96

97

93

93

93

93

95

95

95

96

96

97

Hugo Boss

Lacoste

TOM TAILOR

Jack Wolfskin

Esprit

Nike

s.Oliver

H&M

Puma

Adidas 2011

2007

Top 10 companies: brand awareness

59

TOM TAILOR: a key winner in the current Spiegel Outfit study – criteria brand awareness

+ 22 %

Page 7: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

│7Source: Spiegel Outfit study 7.0 (2011); Spiegel Outfit study 6 (2007)

2011

2007

26

n.a.

39

34

39

41

47

57

34

38

49

51

56

58

59

61

63

70

Reebok

New Yorker

TOM TAILOR

Levi´s

Puma

Nike

Esprit

s.Oliver

H&M

Adidas

38

Top 10 companies: brand ownership

22

TOM TAILOR: a key winner in the current Spiegel Outfit study – criteria brand ownership

+ 27 %

Page 8: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

│8Source: Spiegel Outfit study 7.0 (2011); Spiegel Outfit study 6 (2007)

34

46

43

26

43

39

46

58

66

69

76

76

76

76

78

79

80

84

Reebok

Jack Wolfskin

H&M

Esprit

Levi´s

TOM TAILOR

s.Oliver

Nike

Puma

Adidas 2011

2007

41

Top 10 companies: willingness to buy

23

TOM TAILOR: a key winner in the current Spiegel Outfit study – criteria willingness to buy

+ 50 %

Page 9: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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n From 2012 onwards, TOM TAILOR will benefit

from direct access to Asmara´s purchasing offices

and infrastructure in Indonesia, Hong Kong,

China, India, Bangladesh, Vietnam, Cambodia and

Pakistan

n TOM TAILOR holds 51% in TOM TAILOR Sourcing

Ltd., Asmara International 49%

TOM TAILOR strenghtensits presence on Asian procurement markets

TOM TAILOR sourcing by fob turnover (country split as of November 2011)

China 32%

India 15%

Europe 8%

Indonesia 12%

Bangladesh 23%

Others 5%

Pakistan 5%

Foundation of TOM TAILOR Sourcing Ltd. with long standing Partner Asmara International

No agency related black box going forward

(direct control of Asian purchasing activities)

Clear visibility on supplier cost calculation

Gross margin improvement expected from

2012 onwards

+

+

TOM TAILOR sourcing by volume 2011 (country split as of November 2011)

China 20%

Banglasdesh 37%India 17%

Indonesia 11%

Europe 8%Pakistan 4%

Others 3%

Page 10: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Gross margin comparison 2009 – 2011:Margin in Q3 2011 above Q3 2010 and 2009

2009

2010

2011

Q1 Q2 Q3

09 10 11 09 10 11

44.544.8

47.0

44.4

50.0

47.6

59.2

41.8

44.4

60.0

38.8

46.7

55.8

42.3

45.8

48.4

45.6

Q4

09 1009 10 11 09 10 11 09 10 11

Wholesale RetailGroup

%

40

50

60

11

Page 11: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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10.8

Q4

29.315.83.69.92010

27.217.16.24.02011

9MQ3Q2Q1

Seasonality: Quarterly sales and profitability development

(€m)

98.9

Q4

248.8101.570.976.42010

295.3118.690.386.32011

9MQ3Q2Q1

Q4 2011 EBITDA should also benefit from no additional transport cost

347.7

> 400

FY

Sales development

Recurring EBITDA development

Q4 2011 sales should benefit from price increases and higher share of retail sales

40.1

~ 48

FY(€m)

Page 12: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Dec. 31, 09

new stores in %

existing stores in %

Dec. 31, 10 Dec. 31, 11e Dec. 31, 12e Dec. 31, 13e

n Increasing annual proportion of existing stores as a percentage of

total stores will boost profitability going forward

55% 63% 81% 84%

45% 37%

19% 16%

87number of stores 158 249 309 369

TOM TAILOR profitability: Increasing impact of existing stores on profitability going forward

25

50

75

100%

69%

31%

going forwardpost IPOpre IPO

Page 13: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Outlook for 2011 confirmed

Net sales: > € 400m

EBITDA: approx. € 48m

TOM TAILOR on track to reach 2011 targets assumingconsumer confidence remains robust in Q4 2011

Page 14: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Differentiation criteria from competitors

FINANCIAL HIGHLIGHTS 9M/Q3 2011

Page 15: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Profit & loss 9M 2011 TOM TAILOR Group: Profitable growth continues

Comments

¢Gross profit margin rose from 46.1% to 47.2% mainly due to higher selling prices as of February. Effects partially offset by higher input costs, especially in Q1, and higher level of markdowns in Retail-Segment

¢Recurring EBITDA below last year´s level due to lower gross margin in Q1, opening costs for new stores and a Retail EBITDA below last year´slevel

¢Recurring net income slightly down mainly due to lower operational result

¢Share of international sales increased to 34.8% following 30.9% in 9M 2010

+ 21.4%

- 7.2%

Key figures 9M 2011

Sale

sG

ross

pro

fit

Rec

urr

ing

EBIT

DA

Rec

urr

ing

net

inco

me

(€m)

(€m)

(€m)

(€m)

114.7

9M 2010 9M 2011

139.3

29.3

9M 2011

27.2

9M 2010

- 12.3%

6.5

9M 2010 9M 2011

5.7

+ 18.7%

248.8

9M 2010 9M 2011

295.3

Page 16: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Profit & loss Q3 2011 TOM TAILOR Group: Difficult quarter due to adverse weather and strong comparables

Comments

¢Sales growth in both segments: Wholesale up 6.3%, Retail up 46.1%

¢Sales achieved in core markets represent 88% of Group sales and are up by 14.9%

¢Gross profit margin strongly increased from 44.4% to 46.7% mainly driven by increase in selling prices as well as shortfall of additional air freight costs. Effects partially offset by higher markdowns in the Retail segment

¢Recurring EBITDA slightly exceeded last year´srecurring EBITDA

¢Recurring net income impacted by higher net financials and tax expenses

+ 16.8%

+ 22.8%

+ 8.2%

- 36.4%

Key figures Q3 2011

Sale

sG

ross

pro

fit

Rec

urr

ing

EBIT

DA

Rec

urr

ing

net

inco

me

(€m)

(€m)

(€m)

(€m)

101.5

Q3 2010 Q3 2011

118.6

45.1

Q3 2010 Q3 2011

55.4

15.8

Q3 2010 Q3 2011

17.1

9.9

Q3 2010 Q3 2011

6.3

Page 17: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Profit & loss Segment Wholesale:Strong increase in profitability in Q3 2011

Comments

¢Solid sales increase of 6.3%; Wholesale represents 67% of Group sales

¢Sales shift to Retail segment due to take-over of Franchise stores in Austria and Germany

¢Order intake until Dec. 2011 7.5%, order intake Jan-February 2012 9.8% above previous year

¢Strong increase in gross margin led to a rising recurring EBITDA

¢Recurring EBITDA margin reached 18.3% following 16.9% in Q3 2010

¢Gross margin increased strongly from 38.8% to 42.3% due to higher selling prices and shortfall of additional freight costs. Effects slightly offset by higher salaries in the production countries

+ 6.3%

+ 15.1%

Key figures Wholesale Q3 2011

Sale

sR

ecu

rrin

g EB

ITD

A

(€m)

(€m)

Gro

ss p

rofi

t

(€m)

74.6

Q3 2010 Q3 2011

79.3

29.0

Q3 2010 Q3 2011

33.5

12.6

Q3 2011

14.5

Q3 2010

+ 15.5%

Page 18: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Profit & loss Segment Retail:EBITDA slightly decreases in Q3 2011

Comments

¢Strong sales growth of 46.1%

¢Adverse weather conditions lead to higher level of markdowns in Q3

¢Segment growths like-for-like 2.3% and once again outperforms the German textile market

¢Gross margin reaches 55.8% after 60.0% in Q3 2010 impacted by difficult situation in Q3

¢EBITDA margin reaches 6.6% following 11.8% in Q3 2010

+ 36.0%

Gro

ss p

rofi

t

(€m)

+ 46.1%

- 18.8%

Key figures Retail Q3 2011

Sale

s

(€m)

(€m)

26.9

Q3 2010 Q3 2011

39.3

16.1

Q3 2010 Q3 2011

21.9

3.2

Q3 2010 Q3 2011

2.6Rec

urr

ing

EBIT

DA

Page 19: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Segment Retail: Accelerated growth momentum due to prudent expansion of store portfolio in Q3

* TOM TAILOR South Eastern Europe

26.9 39.3

2.9

3.5

0.6

0.0

Q3 2010 Lfl stores New stores

2010

Expansion

2011

Closings Q3 2011

€m

TT SEE*/Sagmeister

5.4

Recurring EBITDA development

Q3 2010 Q3 2011

2.6

3.2

margin (€m)

11.8%

6.6%

Lower EBITDA margin due to

¢ lower gross margin and

¢pre-opening costs

Page 20: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Capex 9M 2011: Used for expansion in controlled distribution areas

Comments

¢Expansion of controlled distribution areas leads to Capex of € 17.5m (9M 2010 € 19.1m)

¢Wholesale Capex:

§ 285 additional shop-in-shops

§ € 6.0m invested in controlled distribution areas

¢Repair & maintenance Capex of € 0.9m(9M 2010 € 0.9 m)

¢Retail Capex:

§ 63 additional stores in 9M 2011

§ € 8.7m invested in controlled distribution areas

Capex 9M 2011

TOM

TA

ILO

R

Gro

up

Wh

ole

sale

Ret

ail

(€m)

(€m)

(€m)

19.1

9M 2010 9M 2011

17.5

9.6

9M 2010 9M 2011

7.3

9.5

9M 2010 9M 2011

10.2

Page 21: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Cashflow seasonality: Strong cash inflow in Q4

25.4

FY

Operating cashflow 2011 Capex 2011

n CAPEX 2011 completely covered by operating cashflow

n From 2012 onwards, operating cashflow will exceed CAPEX needs

-10.8

-6.6

9.5

-7.9

22.9

15

-10.5

1.0

8.5

-1.0

Q1 Q2 Q3 9M Q4 FY

2010

2011

Page 22: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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TOM TAILOR

QUESTIONS? – ANSWERS!

Page 23: ANALYST PRESENTATION –9M 2011 November 9, …ir.tom-tailor-group.com/tomtailor/pdf/2011/TOM-TAILOR_Presentation...comparative figures and adverse ... Spiegel Outfit study 7.0 (2011);

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Contact details Investor Relations

Please do get in touch with us:

TOM TAILOR HOLDING AG

Garstedter Weg 14

22453 Hamburg

Dr. Andrea Rolvering

Head of Investor Relations

& Corporate Communications

Tel: +49 (0) 40 589 56 429

Fax: +49 (0) 40 589 56 498

Mobile: +49 (0) 172 399 59 13

Email: [email protected]