KappAhl Year End report: A stronger position in our market

Regulatory News:

• Net sales increased by 1.7 % for the quarter and 3.6 % for the full year.
• Sales in comparable stores increased during the quarter by 1.7 % and for the full year by 3.0 %.
• The gross margin improved by 2.5 percentage points for the full year.
• The Board of Directors proposes that no dividend be distributed for the financial year.
• New operative and financial targets have been set.

”In brief, it has been a good year for KappAhl. We have achieved the year's targets and report increased sales, stronger gross margins and improved earnings. We have taken measures and are closing the year with a strong balance sheet.”

Johan Åberg, President and CEO. Read the full CEO statement on the next page.

A presentation and telephone conference will be held for analysts, media and investors today at 9.30 at Operaterrassen in Stockholm. To notify attendance at Operaterrassen go to www.kappahl.com/presentations, where the webcast will also be broadcast direct and saved for viewing later. To participate by telephone please call +46 8 5055 6477 about 5 minutes before the start.

The information in this year-end report is disclosed by KappAhl AB (publ) pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 2 October 2013 at 07.30 a.m.

KappAhl was established in 1953 and is a leading fashion chain soon with 400 stores and 4,500 employees in Sweden, Norway, Finland, Poland and the Czech Republic. KappAhl sells value-for-money fashion with a wide appeal – to women, men and children – and focuses in particular on women aged 30-50 with families. All clothes are from our own designers. KappAhl was the first fashion chain to achieve environmental certification in 1999. In the 2012/2013 financial year KappAhl's net sales were SEK 4.8 billion. KappAhl is listed on NASDAQ OMX Stockholm. More information can be found at www.kappahl.com.

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