INTERIM REPORT 1 SEPTEMBER 2015 - 29 FEBRUARY 2016

For the second quarter 2015/2016, RNB reported operating income of SEK 1 M,
compared to SEK 17 M in the year-earlier period. The change in sales during the
quarter for the three concepts’ comparable stores in Sweden amounted to between
-4 and 6 percent and to -1 percent for the Group overall. Brothers continued to
perform positively with sales that were clearly better than the market. Sales in
Departments & Stores decreased marginally. An overview of the operations in
Polarn O. Pyret has been initiated in order to clearly increase profitability in
the business area.
SECOND QUARTER, DECEMBER 1, 2015 – FEBRUARY 29, 2016 IN SUMMARY

  · Sales in comparable stores in Sweden decreased during the quarter by 0.8
percent, compared to the market’s increase of 1.9 percent (Swedish Retail and
Wholesale Trade Research Institute (HUI)).
  · Net sales totaled SEK 573 M (578), a decrease of 1.0 percent.Operating
income amounted to SEK 1 M (17).
  · Operating income before depreciation for the latest 12-month period totaled
SEK 86 M.
  · Operating income for the latest 12-month period totaled SEK 38 M.
  · The loss before tax amounted to SEK -5 M (23).
  · The loss after tax amounted to SEK -5 M (23), which corresponds to SEK -0.14
(0.67) per share.
  · Cash flow from operating activities was SEK 20 M (42).

THE PERIOD, SEPTEMBER 1, 2015 – FEBRUARY 29, 2016 IN SUMMARY

  · Sales in comparable stores increased during the period by 5.1percent.
  · Net sales amounted to SEK 1,129 M (1,087), equivalent to an increase of 3.8
percent.
  · Operating income amounted to SEK 30 M (40).
  · Profit before tax amounted to SEK 26 M (45).
  · Profit after tax amounted to SEK 26 M (45), which corresponds to SEK 0.76
(1.32) per share.
  · Cash flow from operating activities was SEK 36 M (48).

EVENTS AFTER THE INTERIM PERIOD

Polarn O. Pyret AB acquired 51 percent of the shares in Kids Company Oy in
Finland. Kids Company Oy, which is the master franchise business of Polarn O.
Pyret in Finland, operates twelve proprietary physical stores as well as an e
-commerce store and three franchise stores. The operation generated net sales of
about MSEK 100 in 2015. The acquisition is expected to close on March 31, 2016
and also includes a mutual option to acquire respectively sell the remaining 49
percent within a period of four years.