Clas Ohlson year-end report 2014/15

Fourth quarter

  · Sales increased by 8% to 1,498 MSEK (1,386), 6% in local currencies
  · Operating loss amounted to 8 MSEK (loss: 18)
  · Loss after tax amounted to 5 MSEK (loss: 12)
  · Loss per share was 0.07 SEK (loss: 0.19)
  · Two store contracts signed, Svolvær in Norway and Karlstad in Sweden

Financial year

  · Sales increased by 8% to 7,330 MSEK (6,808), 6% in local currencies
  · Operating profit increased by 12% to 596 MSEK (531)
  · Profit after tax increased by 13% to 459 MSEK (405)
  · Earnings per share increased by 13% to 7.27 SEK (6.42)
  · Cash flow from operating activities amounted to 647 MSEK (689)
  · The proposed dividend is 5.25 SEK per share (4.75)

Events after the end of the reporting period

  · Sales in May increased by 8% to 554 MSEK (512), 7% in local currencies.
  · Decision by the Board of Directors to exercise the Annual General Meeting’s
authorisation to buy back shares to secure LTI 2015
  · Contracts have been signed regarding three stores in Hamburg in Germany to
be established from summer 2016

CEO’s comments

“We are breaking new records and taking further steps internationally

We round off the financial year at record levels, with higher sales and
strengthened fourth-quarter earnings. A strong offering and a clear spring range
has given us a good start in the new financial year.

It is gratifying to end Clas Ohlson’s 2014/15 financial year with record
-breaking results. During the year, we increased sales by 8 per cent to 7,330
MSEK and increased operating profit by 12 per cent to 596 MSEK.

We noted a positive sales trend in all of our sales channels during the spring,
particularly in Finland and Norway. In total, sales in the quarter increased by
8 per cent to 1,498 MSEK.

We had a good start to the new fiscal year with sales growth of 8 per cent in
May.

Enhanced efficiency in supply chain

Enhanced efficiency in the supply chain, particularly due to the long-term
transport agreements for deliveries to and from the company effective as of July
last year, benefited Clas Ohlson during the quarter, thus offsetting the effect
of the USD. Delays in inventories and a favourable sales mix also help the
company withstand such effects.

Exchange-rate fluctuations present a challenge for us going forward. We will
continue to work on actions to counteract the effect of the trend in the USD as
far as possible.

We are taking the next step in our international expansion

We announced today that as part of our review of the existing store network in
the UK we will close our store in Birmingham and open a new, more space
-efficient store in St Albans just outside London in September.

As for our expansion into the German market, it is fantastic that we now have
finalised three store contracts in Hamburg. The stores will be established
beginning in summer 2016 and are located in Hamburg's city center, in the
district of Altona and in Hamburg's largest shopping mall in the district
Alstertal. With these three store contracts, we have created the very best
conditions for a good start in Germany. We indeed have exciting times ahead.”

Press and analyst conference

A press and analyst conference will be held on Wednesday 10 June at 08:30 a.m.
at Clas Ohlson’s store at Drottninggatan 53 in Stockholm and can also be
followed on about.clasohlson.com or www.financialhearings.com

For more information please contact:
Sara Kraft Westrell, Director of Information and IR, phone +46 (0)247-649 13
Clas Ohlson was founded in 1918 as a mail order business based in Insjön,
Dalarna, Sweden. Today, the company is trading in five countries offering
outstanding service via its approx. 200 stores, web shop, catalogue and
telephone sales channels. Clas Ohlson helps its customers solve every day
practical small problems with a wide range of affordable products in five
product areas: Hardware, Electrical, Home, Multimedia and Leisure. The company
is listed on the Nasdaq OMX Nordic Exchange, has sales of over 7 billion SEK and
over 4,700 employees. Visit Clas Ohlson at www.clasohlson.com.