KappAhl Year End report: A stronger position in our market

+----------------------------+---------+-----+------+-----+---------+------+
|                            |Fourth                |Full                  |
|                            |quarter               |year                  |
|                            |(Jun–Aug)             |(Sep                  |
|                            |                      |-Aug)                 |
|                            |                      |                      |
+----------------------------+---------+-----+------+-----+---------+------+
|                            |2012/2013|2011/|Change|2012/|2011/2012|Change|
|                            |         |2012 |      |2013 |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Net   sales, SEK million    |1 148    |1 129|19    |4 751|4 587    |164   |
|                            |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Operating   profit excluding|57       |46   |11    |202  |53       |149   |
|non-recurring costs, SEK    |         |     |      |     |         |      |
|million                     |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Operating   profit, SEK     |43       |29   |14    |252  |-64      |316   |
|million                     |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Gross   margin, %           |57,0     |57,0 |0,0   |59,2 |56,7     |2,5   |
+----------------------------+---------+-----+------+-----+---------+------+
|Operating   margin excluding|5,0      |4,1  |0,9   |4,3  |1,2      |3,1   |
|non-recurring items, %      |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Profit   after tax, SEK     |7        |-40  |47    |91   |-224     |315   |
|million                     |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Earnings   per share, SEK   |0.09     |-0,82|0,91  |1,32 |-5,30    |6,62  |
|(Note 1)                    |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+
|Cash   flow from operating  |15       |-27  |42    |230  |153      |77    |
|activities, SEK million     |         |     |      |     |         |      |
+----------------------------+---------+-----+------+-----+---------+------+

  · 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.
For further information:
Johan Åberg / President and CEO, tel. +46 706 09 99 73
Claes-Göran Starud / acting CFO, tel. +46 704 71 56 64

For pictures and other information:
Charlotte Högberg/ Head of Public Relations, tel. +46 704 71 56 31,
charlotte.högberg@kappahl.com
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.

KappAhlwas 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.