DGAP-News

TOM TAILOR GROUP separates from its troubled past and lays foundation for the future

DGAP-News: TOM TAILOR Holding AG / Key word(s): Preliminary Results TOM TAILOR GROUP separates from its troubled past and lays foundation for the future 21.02.2017 / 20:03 The issuer is solely responsible for the content of this announcement. TOM TAILOR GROUP separates from its troubled past and lays foundation for the future

Preliminary figures for the fiscal year 2016

- Forecast achieved: sales increase by 1.3 percent to EUR 968.5 million and Group EBITDA at EUR 10.3 million

- Net result for the year including the RESET measures in line with expectations negative at around EUR 73 million (preliminary)

- Fourth quarter of 2016 shows first effects for stabilizing earnings

- Net debt and inventories both reduced by EUR 44.3 million compared with 30 June 2016

- TOM TAILOR brand increases sales by 5.6 percent to EUR 665.6 million

Hamburg, 21 February 2017. The TOM TAILOR GROUP has achieved its forecast for the fiscal year 2016 with a Group EBITDA amounting to EUR 10.3 million and an increase in sales of 1.3 percent to EUR 968.5 million. Furthermore, the company has realized the first positive effects from the RESET cost-reduction and efficiency program. In line with expectations, the loss for the year amounts to around EUR 73 million pre-audit. This result includes one-off expenses amounting to EUR 80.9 million for the RESET measures.

Realignment proceeds

The cost and process optimization program launched by the new Executive Board in October 2016 is progressing well and is beginning to have a positive impact. The objective is to focus the Group on its healthy core business and to consistently discontinue all unprofitable business operations.

As a result, during the fourth quarter of 2016, the Group pulled back business from South Africa and either started or already completed around 250 of approximately 300 planned branch closures. Additionally, the brands TOM TAILOR POLO TEAM and TOM TAILOR Contemporary were discontinued and, in the summer of 2017, the BONITA Men brand will also be taken out of the market. Furthermore, BONITA successfully implemented a tight cost management and thereby further reduced its cost base by nearly 10 percent. In 2017, the Group will also withdraw from China, the USA, and largely from France.