DGAP-News: TOM TAILOR GROUP starts cash capital in

DGAP-News: TOM TAILOR Holding AG / Key word(s): Capital Increase TOM TAILOR GROUP starts cash capital increase and publishes initial results on its performance in the first nine months of 2013 23.10.2013 / 18:21 --------------------------------------------------------------------- TOM TAILOR GROUP starts cash capital increase and publishes initial results on its performance in the first nine months of 2013 - Group sales up 64.6% to EUR 656.0 million - Improvement of gross profit margin by 4 percentage points to 54.7% - Recurring EBITDA increases by 52.8% to EUR 47.2 million - Cash capital increase to strengthen equity base Hamburg, 23 October 2013. The Management Board of TOM TAILOR Holding AG today decided, with the approval of the Supervisory Board, to carry out a capital increase against cash contributions through the partial utilisation of authorised capital. The Company intends to use the proceeds from the capital increase to strengthen its equity ratio, reduce its gearing and acquire shares of subsidiaries. In advance to this transaction, TOM TAILOR GROUP is publishing key figures on its performance in the first nine months of 2013. 'TOM TAILOR GROUP has significantly gained momentum and recorded a sharp increase in sales and operating result. The measures we have implemented at BONITA are beginning to bear fruit and their impact is becoming clearer each quarter. Subsequent to merging our two umbrella brands operationally, thereby creating an efficient infrastructure, we now want to further strengthen the Company's equity base by means of a capital increase,' said Dieter Holzer, Chairman of the Management Board (CEO) of TOM TAILOR Holding AG. Capital increase against cash contributions to strengthen equity base The transaction will involve the issue of 1,818,098 new no-par-value registered shares, which excludes shareholders' subscription rights, and will raise the share capital of TOM TAILOR Holding AG from EUR 24,209,035.00 to EUR 26,027,133.00. The new shares are entitled to share in profits from 1 January 2013. The proceeds generated from the capital increase will serve to strengthen the equity ratio to a target range of between 30% and 35%. As of 30 September 2013, the equity ratio amounted to 26.1% (PY: 28.4%). Net debt of TOM TAILOR GROUP amounted to EUR 276.1 million on 30 September 2013 (PY: EUR 279.4 million), the transaction thus also serves to reduce the gearing ratio. In addition, the Company plans to use a proportion of the funds raised to acquire minority shareholdings in subsidiaries. Through the purchase of these shares, the Company acts in the interest of its shareholders and should be able to reduce profit distributions to minority shareholders. The new shares will be offered today for purchase to both, German and international institutional investors (excluding Canada, Japan and Australia) in a private placement with accelerated bookbuilding. The issue price will be set immediately after the accelerated bookbuilding, presumably on Thursday, 24 October 2013. The Company has applied for permission without a prospectus and for the new shares to be traded on the regulated market of the Frankfurt Stock Exchange and to be included in the Prime Standard, as well as for trading on the regulated market of the Hamburg Stock Exchange. It is intended that the new shares will be included in the current listing on 28 October 2013. Increase in sales of around 65% TOM TAILOR GROUP benefited in the third quarter from an improved market environment and the first positive effects induced by the optimisation programme at the BONITA umbrella brand. In the first nine months of 2013 the Group boosted its sales by 64.6% to EUR 656.0 million (PY: EUR 398.5 million). When making comparisons with the previous year, it should be noted that BONITA was consolidated from August 2012 onwards. TOM TAILOR Retail was once again the fastest-growing segment in the reporting period. The segment increased its sales by 28.4% to EUR 174.9 million (PY: EUR 136.2 million). The BONITA Retail segment generated sales of EUR 254.2 million; in the third quarter, BONITA recorded like for like growth of 5.3% for the first time since its acquisition by TOM TAILOR GROUP. BONITA's positive performance resulted primarily from improved merchandise management and shop floor controlling. The Group also managed to expand its sales significantly in the wholesale segment (exclusively TOM TAILOR). Sales rose by 10.7% to EUR 226.9 million (PY: EUR 205.0 million) in the first nine months of the year. Improvement of gross profit margin by 4 percentage points to 54.7% Increased sales, the use of a joint design, development and procurement platform and economies of scale had a positive impact on the Group's profitability. TOM TAILOR GROUP's gross profit margin increased by 4 percentage points to 54.7% (PY: 50.7%). The Group's earnings before interest, taxes, depreciation and amortisation (EBITDA) adjusted for one-off items rose by 52.8% to EUR 47.2 million (PY: EUR 30.9 million). BONITA contributed EUR 12.7 million to this figure. In the TOM TAILOR Retail segment, recurring EBITDA grew by 24.1% to EUR 9.9 million. TOM TAILOR Wholesale increased its recurring EBITDA by 44.2% to EUR 24.6 million. In the first nine months of 2013, TOM TAILOR GROUP generated a cash flow from operating activities of EUR 10.4 million. For the same nine-month period, TOM TAILOR GROUP reported a recurring net result of EUR 0.2 million (PY: EUR 5.5 million). The decrease in the reported net result to EUR -13.9 million (PY: EUR -3.5 million) can be attributed mainly to the income of EUR 11.1 million contained in the previous year's figure which resulted from the positive badwill arising from the takeover of BONITA. TOM TAILOR Holding AG will publish its complete report on the third quarter and the first nine months of 2013 on 7 November 2013. TOM TAILOR GROUP 9M 2013 9M 2012 3Q 2013 3Q 2012 Sales (in EURm) Group 656.0 398.5 249.0 190.7 Wholesale 226.9 205.0 90.2 82.8 TOM TAILOR Retail 174.9 136.2 67.1 50.6 BONITA 254.2 57.3 91.7 57.3 Gross Margin (in %) Group 54.7 50.7 52.1 50.9 Wholesale 43.5 42.0 41.7 38.9 TOM TAILOR Retail 58.5 58.5 55.4 56.7 BONITA 62.1 63.2 60.0 63.2 Recurring EBITDA (in EURm) Group 47.2 30.9 21.4 19.1 Wholesale 24.6 17.0 10.9 9.2 TOM TAILOR Retail 9.9 8.0 4.9 4.0 BONITA 12.7 5.9 5.5 5.9 TOM TAILOR GROUP Operating cashflow (in EURm) 10.4 (34.7) 5.9 (25.9) Net debt (in EURm) 276.1 279.4 276.1 279.4 Equity ratio (in %) 26.1 28.4 26.1 28.4 This release is neither an offer for sales nor to purchase nor for the subscription of securities of TOM TAILOR Holding AG. In connection with the transaction there have not been and will not be any public offer and no prospectus published. This document is not for publication or distribution, directly or indirectly, in or into the United States. This document does not constitute or form part of an offer of securities for sale or solicitation of an offer to purchase securities in the United States, Canada, Australia, Japan or in any other jurisdiction where such offer may be restricted. The securities referred to in this document have not been, and will not be, registered under the US Securities Act of 1933, as amended (the 'Securities Act'), and may not be offered or sold in the United States or to or for the account or benefit of US persons (as such term is defined in Regulation S under the Securities Act), except on the basis of an applicable exemption from registration or in a transaction not subject to the registration requirements of the Securities Act. There will be no public offering of securities in the United States or anywhere else. This communication is directed only at persons who: (i) are qualified investors within the meaning of the Financial Services and Markets Act 2000 (as amended) and any relevant implementing measures and/or are outside the United Kingdom or (ii) have professional experience in matters relating to investments who fall within the definition of 'investment professionals' contained in article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the 'Order') or are persons falling within article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order, or fall within another exemption to the Order (all such persons referred to in (i) and (ii) above together being referred to as 'Relevant Persons'). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. About TOM TAILOR GROUP The TOM TAILOR GROUP is an international fashion and lifestyle company offering stylish casual wear and accessories in the medium price range through its umbrella brands TOM TAILOR and BONITA. The TOM TAILOR umbrella brand comprises the brands TOM TAILOR, TOM TAILOR Denim and TOM TAILOR POLO TEAM. Its collections are aimed at customers aged between 0 and 40 and are marketed in more than 35 countries via its wholesale and retail segments. BONITA, one of Germany's leading fashion brand producers and retailers, has been a part of the TOM TAILOR GROUP since August 2012. BONITA sells mens- and womenswear collections for the over-40 age group. In fiscal year 2012, the TOM TAILOR GROUP reported sales of EUR 629.7 million, of which EUR 153.9 million was generated by BONITA. The Group has approximately 1,300 own stores in the retail segment. About 1,000 of these are BONITA and BONITA men stores, and 335 are TOM TAILOR stores. The TOM TAILOR brand is also sold via retail partners. Further information is also available at www.tom-tailor-group.com and www.bonita.eu Media and investor contact Felix Zander Head of Investor Relations & Corporate Communications TOM TAILOR GROUP Phone: +49 (0) 40 58956-449 Fax: +49 (0) 40 58956-199 Email: felix.zander@tom-tailor.com Erika Kirsten Manager Corporate Communications TOM TAILOR GROUP Phone: +49 (0) 40 58956-420 Fax: +49 (0) 40 58956-199 Email: erika.kirsten@tom-tailor.com End of Corporate News --------------------------------------------------------------------- 23.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: TOM TAILOR Holding AG Garstedter Weg 14 22453 Hamburg Germany Phone: +49 (0) 40 589 56 0 Fax: +49 (0) 40 589 56 398 E-mail: info@tom-tailor.com Internet: www.tom-tailor-group.com ISIN: DE000A0STST2 WKN: A0STST Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), Hamburg; Freiverkehr in Berlin, Düsseldorf, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 235901 23.10.2013