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The First Quarter 2006/20071 September to 30 November 2006

21 December 2006

Christian W. JanssonCEOHåkan WestinCFO

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Disclaimer

• These materials may not be copied, published, distributed or transmitted to third parties

• These materials may contain forward-looking statements. If so, such statements are based on our current expectations and are subject to risks and uncertainties that could negatively affect our business. Please read our earnings report and our most recent annual report for a better understanding of these risks and uncertainties.

• These materials do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials and the information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States.

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I Business Highlights

II Results Q1, 2006/2007

III Key Conclusions

Agenda

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Business HighlightsI

• The best first quarter so far.– Improved gross margin. – Successful purchasing and good inventory control.– Good LFL sales

• Continued good general retail demand.

• Store expansion program on track.– 11 new stores during Q1.– Current network of 271 stores and 17 contracts

for new store openings.– Rest of the financial year, 2-4 closures and

5-8 openings.

Business Highlights

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II

Financial Highlights Q1II

• Sales increased by 3.2 percent to MSEK 1 189 (1 152).

• Gross margin improved to 62.2 (58,7) percent.

• Operating profit increased to MSEK 186 (150).

• Operating margin improved to 15.6 (13.0) percent.

• Profit after taxes was MSEK 123 (96), corresponding to SEK 1.64 (1.28) per share.

Results Q1

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1 189

1 152

800

900

1 000

1 100

1 200

1 300

Q105/06

FXeffect

Netnew

stores

LFLgrowth

Q106/07

MS

EK

-2,8% +4,5% +1,5% ∑ 3,2%

Financial Highlights Q12006/2007 vs. 2005/2006

• FX impact was negative.

• Net new stores largest growth contributor with 4.5 percent.

• LFL -2.0 percent impacted by discontinued cosmetics sales MSEK 0 (20).

• LFL excluding cosmetics was +3.5 percent.

IIIIResults Q1

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Profitability Drivers Q12006/2007 vs. 2005/2006

• Strong gross margin.

• Selling expenses effected by marketing activities.

Q1 (Sept-Nov)MSEK 05/06 04/05

Gross profit 740 676Gross margin 62,2% 58,7%

Selling expenses -513 -487% of sales 43,1% 42,3%

Admin expenses -41 -39% of sales 3,4% 3,4%

EBITDA 234 192EBITDA margin 19,7% 16,7%

Operating profit 186 150Operating margin 15,6% 13,0%

IIIIResults Q1

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Income Statement Q12006/2007 vs. 2005/2006

Income statement Q1 (Sept-Nov)MSEK 06/07 05/06Net sales 1 189 1 152Cost of goods sold -449 -476Gross profit 740 676

Selling expenses -513 -487Administrative expenses -41 -39Operating profit 186 150

Financial income 2 1Financial expense -16 -19Profit before tax 172 132

Tax expense -49 -36Net profit 123 96

• Improved net finance

• Net profit +28%

IIIIResults Q1

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Sales Breakdown Q12006/2007 vs. 2005/2006

Q1 Q1 GrowthMSEK 06/07 05/06 SEK Loc. cur.Sweden 683 653 4,6% 4,6%Norway 333 341 -2.3% 6,3%Finland 130 121 7.4% 9,7%Poland 43 37 16.2% 19,3%Total 1 189 1 152 3.2%

IIIIResults Q1

(57%)

Poland4%

Norway31%

Finland11%

Sweden57%

(3%)

(30%)

(10%)

28%

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Cash Flow Q1IIIIResults Q1

Cash flow statement Q1 Q1MSEK 06/07 05/06Cash flow from operations before working capital changes 185 150Changes in working capital 24 11Cash flow from operating activities 209 161

Cash flow investing activities -50 -60Cash flow after investments 159 101

Cash flow from financing activities -99 -89Change in revolving credit -5 -8Net cash flow for the period 55 4

Cash and bank balances at beginning of period 72 83Cash and bank balances at end of period 127 87

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Key Conclusions and OutlookKey Conclusions III

• Best quarter so far• First class gross margin• Excellent inventory control• Good sales development• Higher operating margin target

Focus going forward• Continued emphasis on overall sales

• Maintain gross margin

• Continue new store expansion program• Two companies acquired – tax loss carryforwards.

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We don’t believe in selling a lifestyle.You have one already.

We don’t believe in expensive collections for an exclusive few.We believe in fashion that suits you.

We don’t believe in eternal youth, however we believe that people mature, grow wiser and even more beautiful.

Take it as a compliment.