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1 9m 2014

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Analyst Presentation

Nine Months 2014

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ADLER 2 9m 2014

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1

Financials 2

3 Outlook 2014

Highlights

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3 9m 2014

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Strong Outperformance in a Challenging Environment

ADLER Like for Like Growth vs. German Textile Sector*

* TW-Testclub

Weak summer sale months and warm September burden

sales and margins of German textile retailers

ADLER like for like sales +2.6% well above market average

of -4% in Q3 2014

Increasing profitability and margins proofs the success of

ADLER‘s strategy in a challenging environment

ADLER Monthly Like for Like Comparison

-4.1%

11.9% 14.9%

2.2% 2.3%

-6.5% -4.3%

10.1%

2.6% 2% 5%

8%

-5%

2%

-8% -7%

7%

-9%

Jan Feb Mrz Apr Mai Jun July Aug Sept

ADLER LfL German Apparel Sector

-0.9%

7.5% 7.0%

-4.3%

10.1%

2.6%

July Aug Sept

2013 2014

ADLER Stands Strong in a Challenging Market

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4 9m 2014

Course for Further Growth Set

Number of ADLER Stores Per Country

Number of stores*

Country Market

entry 2008 2009 2010 2011 2012 2013

9m

2014

Germany 1948 103 104 107 132 139 143 143

Austria 1987 16 17 26 28 27 25 22

Luxembourg 1981 2 2 2 2 2 2 2

Switzerland 2012 1 1 1

Total Group 121 123 135 162 169 171 168

Organic openings 6 3 8 13 11 5 2

Acquired (M&P) 7 18 5 1 0

Closings/sold 9 1 3 3 9 4 5

Net change -3 2 12 28 7 2 -3

* excl. online shop

Store openings: 2 – Hamburg-Rahlstedt (Q2) and Luedenscheid (Q3)

Openings in Q4: Henstedt-Ulzburg (October)

Store closures: 5 - Huerth, Graz-Liebenau (AT), Innsbruck (AT), Düsseldorf-Bilk and Fürstenfeld (AT)

16 refurbishments completed in 9m 2014

Highlights 9m 2014

Portfolio Consolidation Concluded – Setting Course for Strong Growth

Portfolio consolidation 2014 concluded

Major loss-making stores closed in 2013/2014 supporting present and future profitability

Strong increase in store base to be seen as of Q1-2015

Up to 15 refurbishments p.a. in 2015/2016

Expansion and refurbishments to further support sales short to mid-term

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5 9m 2014

ADLER advances its multi-channel concept

ADLER Expands Online Sales Organization

Multi-Channel specialist Ralf Reckmann appointed Head of e-commerce

Significant increase in sales by

new SIS concept for plus sizes

offering same-day delivery

Break-even of e-shop expected in 2017

Click & Collect activities strengthened further by new measures to support footfall and sales in the brick & mortar business

Short CV Ralf Reckmann

1988 – 1993 Project Director, Karstadt Corporate Planning Department

1993 – 2000 Head Buyer and Head of Sales & Marketing for Karstadt Sports as Category Manager Golf

2000 – 2002 Board of karstadtsport.com AG

2001 – 2002 Managing Director of Karstadt Warenhandels mbh”

2003 – 2006 Director New Business „Karstadt Quelle Group“

2006 – 2007 Self- employed as consultant, e. g. for Deutsche Post AG, Karstadt AG, Golf House and others Interim Management and Business Development for Buy VIP

2007 – 2009 Sales and Marketing Director Europe Golfino AG

2010 - 2014 Managing Director of Retail Development Consulting GmbH (Customers: e.g. Häfele, Vorwerk, Tengelmann, Garant Marketing GmbH, Adler Modemärkte AG, Alno AG, arvato, Netrada, P&C Nord)

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ADLER 6 9m 2014

1

Financials 2

3 Outlook 2014

Highlights

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7 9m 2014

Ongoing Increase in Sales and Profitability

Positive sales trend unbeaten - +2.4% in Q3 2014

Increase in EBITDA and EBITDA margin for the 6th quarter

in a row - +€3.1m to €5.4m

Positive net profit in Q3 for the first time in company

history

Achieving ongoing growth in sales and earnings by

Customer satisfaction (collections, service,

marketing)

Improved inventory management

Cost control

Closure of loss-making stores

Ongoing Positive Trend in Sales and Earnings

Ongoing Increase in Revenues EBITDA Increased 6th Quarter in a Row

in m€

Q1 Q2 Q3 Q4

2011 2012 2013 2014

CAGR11-14 7.2%

-6.6

11.2

0.1

31.1

-7.7

8.4

0.2

35.3

-8.6

17.9

2.3

32.0

-5.6

18.5

5.4

Q1 Q2 Q3 Q4

2011 2012 2013 2014

CAGR11-14 4.6% CAGR11-14

7.4%

CAGR10-13 4.4%

Positive Net Profit in Q3 2014

-4.4

-1.7

0.005

2012 2013 2014

2012 2013 2014

in m€

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8 9m 2014

Q3 and 9m 2014

Outperformance continued

Increase in sales by 2.4% to €122.0m

Like for like sales up 2.6%

Withstanding challenging market environment and strong previous year level

Apart from July, like for like increase predominantely volume driven

ADLER quarterly like for like sales trend

Q3 2014

9m 2014

Increase in group sales by 3.0% to EUR377.9m in line with like for like sales

122.0

119.1

Q3 - 14Q3 - 13

in m€

+ 2.4% 377.9

367.0

9m - 20149m - 2013

+ 3.0%

-5.3%

11.3%

4.6% 4.0%

8.3%

-0.5%

2.6% 3.0%

Q1 Q2 Q3 9m

2013 2014

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9 9m 2014

Stable Gross Profit Margin in Challenging Quarter

Gross profit margin of 53.0%

Only slight decrease of 10 bps despite challenging summer sale caused by unsatisfying July

Q3 and 9m 2014 gross profit margin

Gross profit margin trend

Q3 2014

9m 2014

Positive trend in gross profit margin unbroken

Gross profit margin increase of 50 bps to 54.2%

53.0% 53.1%

Q3 - 14Q3 - 13

54.2% 53.7%

9m - 20149m - 2013

+ 50bps

48.5% 53.0% 49.5% 53.3%

46.6% 53.0% 49.7%

59.2%

49.5% 57.1%

53.1% 59.9%

51.5% 57.4%

53.0%

Q1 Q2 Q3 Q4

2011 2012 2013 2014

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10 9m 2014

EBITDA Supported by Positive Trends in Cost Structure

EBITDA increase by €3.1m to €5.4m, up >130%

EBITDA margin up 250bps to 4.4%

Q3 and 9m 2014 EBITDA

Q3 and 9m 2014 EBITDA margin

Q3 2014

+

Sales improvement in existing and new stores

Positive trend in main cost drivers

9m 2014

EBITDA increase by €6.7m to €18.3m

EBITDA margin up 160bps to 4.8%

5.4

2.3

Q3 - 14Q3 - 13

in m€ + € 3.1m 18.3

11.6

9m - 20149m - 2013

+ € 6.7m

4.4%

1.9%

Q3 - 14Q3 - 13

+ 250bps 4.8%

3.2%

9m - 20149m - 2013

+ 160bps

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11 9m 2014

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Strong and Healthy Balance Sheet Prepared for Expansion

Cash Flow

Free cash flow of - €0.5m slightly negative

CF from operating activities of €9.4m: decrease by €8.1m due to increase in inventories in autumn/winter season

Cash outflow from investing activities of €9.9m: increase by €1.3m due to higher refurbishment activities

Cash outflow from financing activities of €7.4m: decrease by €7.2m due to placement of treasury shares

Increase in cash position by €10.3m from €36.4m 9m 2013 to EUR46.7m 9m 2014

in m€

9.9

7.4

46.7

9.4

54.5

Cash Position 01.01.2014 CF from OperatingActivities

CF from Investing Activities CF from Financing Activities Cash Position 30.09.2014

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12 9m 2014

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Strong and Healthy Balance Sheet Prepared for Expansion

Improvement in Net Debt position of €8.9m

Cash and cash equivalents up €10.3m y-o-y to €46.7m

Balance sheet clean of bank debt

Net Debt *

* Including pension provisions, financial liabilities, finance lease liabilities ex assets held for sale, cash

in m€

- €8.9m

Ongoing Improvement in Equity

94.0 92.0 71.4

38.0% 40.3%

32.3%

Sept 30, 2014Dec 31, 2013Sept 30, 2013

Equity Equity ratio

Ongoing increase in equity to €94.0m after 9m 2014

Equity improved by €22.6m y-o-y and €2,0m ytd

Sold equity ratio further strengthened from 32.3% 9m 2013 to 38.0% 9m 2014

27.4

36.3

Sept 30, 2014Sept 30, 2013

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13 9m 2014

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Increase in Inventories due to Summer Sale and Early Delivery

Inventories

Operating Working Capital

in m€

Trade Payables

Working Capital increase of €5.5m driven by inventories

Solid WC ratio of 8.6%* after 9m 2014 compared to 8.2%* December 2013

Insignificant amount in trade receivables of < € 0.1m

in m€

Increase in inventories by €6.5m due to unsatisfying summer sale and early inventories in autumn/winter season

Trade payables up €1.1m

in m€ 97.7 91.2

Sept 30, 2014Sept 30, 2013

+ 7.1% 51.4 50.3

Sept 30, 2014Sept 30, 2013

+ 2.2%

50.1 42.6 40.9 43.4 42.9 40.5

46.4

Q1 H1 9m FY

2013 2014

*based on LTM

14 9m 2014

1

Financials 2

3 Outlook 2014

Highlights

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15 9m 2014

Outlook 2014 Unchanged

Guidance

Sales Low single digit

EBITDA In line with sales growth

Expansion 5 – 10 new stores

Additional store closures

Operational Outlook

Gross profit margin

Personnel expenses Wage increase after renewal of collective

bargain agreement

Slight increase

Transport and logistics costs Slight increase

Revitalization of brand image Implementation of RFID technology in all stores

Up to 20 refurbishments Acquisition of Mom & Pop shops

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16 9m 2014

Thank you for your attention