GERRY WEBER International AG Interim report Q2 2010/2011 Report on the six-month period ended 30 April 2011 WKN: 330 410 ISIN: DE0003304101
The GERRY WEBER share Gaining roughly 27 percent, the GERRY WEBER share delivered an excellent performance in the first half of 2010/2011. Having started from EUR 34.62 on 29 October 2010, the share closed the reporting period at EUR 44.00 on 29 April 2011 (all figures refer to Xetra closing prices). The German DAX, MDAX and SDAX indices gained only about 13 percent during the same period, which means that they clearly underperformed the GERRY WEBER share. In the six-month period, the share reached a low of EUR 32.60 on 23 November 2010 and a high of EUR 44.60 on 28 April 2011. At the Annual General Meeting on 24 May 2011 the shareholders approved the Management Board s profit appropriation proposal of EUR 1.10 per voting share for the fiscal year 2009/2010. This represents an increase of roughly 30 percent or EUR 0.25 on the previous year and is the highest profit distribution in the history of the company. In addition, the Annual General Meeting on 24 May 2011 decided to increase the share capital from company funds. Accordingly, the share capital of GERRY WEBER International AG in an amount of EUR 22.953 million will be increased to EUR 45.906 million. To finance the capital increase, revenue reserves will be converted into share capital. The new shares will be offered to shareholders on a 1:1 basis with full dividend entitlement from 1 November 2010. Figures of the first six months of 2010/2011 (to IFRS; in EUR million, unless otherwise indicated) 2009/2010 2010/2011 Sales revenues 305.5 340.4 EBITDA 38.8 46.4 EBITDA margin 12.7% 13.6% EBIT 33.0 40.6 EBIT margin 10.8% 11.9% EBT 31.2 39.2 EBT margin 10.2% 11.5% Net income 20.5 25.5 DVFA result per share* in EUR 0.99 1) 1.11 2) Gross cash flow 37.0 45.0 Fixed asset investments 7.6 18.2 Headcount on 30 April 2,511 2,861 1) on the basis of 20,817,242 outstanding shares 2) on the basis of 22,952,980 outstanding shares Interim management report for the six-month period ended 30 April 2011 and Q2 2010/2011 Business trend Spring 2011 saw the world economy in an upswing. The German economy, too, experienced a strong upward trend and had a dynamic start to the year 2011, following only moderate growth in the fourth quarter of 2010. In the first three months of 2011, the gross domestic product (GDP) increased by 1.5 percent on the previous quarter in price, seasonally and working day adjusted terms, which means that economic growth already exceeds the pre-crisis level of early 2008. The domestic economy, in particular, showed a positive trend, with capital and consumer spending picking up markedly. The upward trend in exports and imports continued. Real GDP was up by 5.2 percent on the previous year, which was the highest growth recorded since German reunification (source: Federal Statistical Office). The improved macroeconomic environment is increasingly reflected in the fashion industry. According to a representative survey conducted by GermanFashion Modeverband e.v. in January 2011, 66 percent of the companies surveyed described the sales trend in the period from October to December 2010 as good, 30 percent called it satisfactory and only 4 percent described it as poor. Workwear and sportswear manufacturers reported a particularly strong increase in revenues, with 78 percent of these manufacturers saying they were very satisfied. They were followed by menswear manufacturers (69 percent) and ladieswear manufacturers (50 percent). 55 percent of the member companies reported good export activity. 74 percent of the companies described their order situation as good. Here, too, workwear and sportswear manufacturers were most satisfied (83 percent), followed by menswear producers (81 percent) and ladieswear manufacturers (58 percent). The successful performance of the GERRY WEBER Group continued in the first half of 2010/2011, when both sales revenues and earnings hit new records. At EUR 340.4 million, the Group s sales revenues were up by 11.4 percent on the previous year. All earnings figures increased disproportionately. The Retail segment again reported the strongest growth. As of 30 April 2011, 192 of the 431 HOUSES OF GERRY WEBER were managed by the company itself, with the remaining 239 HOUSES OF GERRY WEBER run by franchisees. 205 of the stores were located in Germany, while 226 were located abroad. As of the reporting date, the GERRY WEBER Group operated 149 own HOUSES OF GERRY WEBER in Germany, 17 in Austria, 13 in Spain, eight in the UK, four in Denmark and one in Ireland. The Group s own Retail segment also comprises 40 concession shops, of which 29 are operated at El Corte Inglés, the largest department store chain in Spain. 2
The number of shop-in-shops rose from 1,862 in the previous year to 2,122, of which 1,716 were located in Germany and 406 were situated abroad. As of 1 April 2011, the GERRY WEBER Group took over Castro Deutschland GmbH & Co. KG. The stores at Schildergasse in Cologne and Königstrasse in Stuttgart will be upgraded and converted into HOUSES OF GERRY WEBER flagship stores. Sales performance The Group s sales revenues rose from EUR 305.5 million to EUR 340.4 million in the first half of 2010/2011, which represents an increase by 11.4 percent. The strong growth was again driven by the GERRY WEBER core brand and the company s own Retail activities. Sales revenues in the Retail segment, which comprises the concession shops as well as the 192 company-managed HOUSES OF GERRY WEBER and the GERRY WEBER eshop, increased by 27.7 percent from EUR 78.8 million to EUR 100.7 million. Sales revenues picked up also on a quarterly basis, namely by 12.9 percent from EUR 165.7 million to EUR 187.0 million. In the first half of 2010/2011, brand revenues improved by 11.4 percent from EUR 253.8 million to EUR 282.7 million. The GERRY WEBER core brand reported an 11.6 percent increase from EUR 197.8 million to EUR 220.8 million. At 78 percent, its contribution to total brand sales remained almost unchanged. The two sublabels, GERRY WEBER EDITION and G.W., contributed to the success of the core brand and increased their sales revenues by 25.1 percent to EUR 86.2 million and by 52.5 percent to EUR 15.4 million, respectively. At EUR 47.3 million, sales of TAIFUN, the second biggest label, which is targeted at the modern woman, were up by 9.5 percent on the previous year s EUR 43.2 million. TAIFUN contributed 16.7 percent to total brand revenues. Positioned in a niche segment for plus sizes, SAMOON by GERRY WEBER increased its sales by 14.1percent from EUR 12.8 million in the previous year to EUR 14.6 million, which represented 5.2 percent of total brand revenues. Incoming orders Incoming orders for the seventh collection for the autumn/ winter season 2011 totalled EUR 52.5 million, up 28.7 percent on the previous year. The GERRY WEBER core brand reported a 24.4 percent increase to EUR 39.8 million, while incoming orders for TAIFUN rose by an impressive 48.4 percent to EUR 9.8 million. Incoming orders for SAMOON by GERRY WEBER grew by 31.8 percent to EUR 2.9 million. Earnings position The GERRY WEBER Group once again increased its profits at a disproportionate rate. The marked improvement in earnings is primarily attributable to the cost-efficient procurement structures, which the company optimises on an ongoing basis. A global sourcing system allows the GERRY WEBER Group to benefit from wage cost differences between individual countries and regions and to integrate lower-cost production locations into its corporate structures without compromising on the high quality of its products. The use of intelligent IT systems in production and logistics also has a positive impact on the Group s profitability. In the first half of 2010/2011, earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 19.5 percent to from EUR 38.8 million in the prior year period to EUR 46.4 million. Earnings before interest and taxes (EBIT) increased by 22.9 percent from EUR 33.0 million to EUR 40.6 million. Earnings before taxes (EBT) rose by 25.8 percent from EUR 31.2 million to EUR 39.2 million. The respective margins increased accordingly. Net income for the period climbed by 24.2 percent from EUR 20.5 million to EUR 25.5 million. DVFA earnings per share amounted to EUR 1.11 (based on 22,952,980 shares outstanding), up from EUR 0.99 (based on 20,817,242 shares outstanding). Earnings increased markedly also in quarter-on-quarter terms. EBITDA rose by 22.4 percent from EUR 22.8 million to EUR 27.9 million, while EBIT increased by 26.1 percent from EUR 19.9 million to EUR 25.1 million. EBT climbed 28.4 percent from EUR 19.0 million to EUR 24.4 million. Net income for the period rose by 25.6 percent from EUR 12.5 million to EUR 15.7 million. DVFA earnings per share climbed from EUR 0.60 (based on 20,817,242 shares outstanding) to EUR 0.68 (based on 22,952,980 shares outstanding). Net worth and financial position At EUR 391.7 million, total assets were up by 20.0 percent on the EUR 326.5 million posted on 31 October 2010. The equity ratio climbed from 64.5 percent to 74.3 percent. This is attributable to the increase in capital reserves by EUR 57.3 million, which, in turn, is due to the sale of own shares. The financial position of the GERRY WEBER Group thus remains very sound. Non-current financial liabilities were reduced by 16.6 percent, while trade liabilities declined by 30.5 percent. On the assets side, liquid funds exceeded the liabilities to banks by EUR 72.4 million, which means that the company had no net financial liabilities. Gross cash flow improved by an impressive 21.6 percent from EUR 37.0 million to EUR 45.0 million. 3
Investments At EUR 18.2 million, the GERRY WEBER Group s investments in the first half of 2010/2011 clearly exceeded the prior year level (EUR 7.6 million). Investments focused on the expansion of the properties in Halle/Westphalia and Düsseldorf. They were financed from the company s liquid funds and were covered by operating cash flow at all times. Investments in the second quarter of 2010/2011 amounted to EUR 13.6 million (previous year: EUR 5.7 million). Employees The company employed an average of 2,861 people in the first half of the year, of whom 1,970 worked in Germany and 891 abroad. This represents an increase by 350 (previous year: 2,511). Most of the new jobs were created in the Retail segment, i.e. at the company-managed HOUSES OF GERRY WEBER. Segment report The segment report of the GERRY WEBER Group breaks down the Group s activities into a Ladieswear Production and Wholesale segment and a Retail segment. Sales revenues in the Production and Wholesale segment increased by 5.2 percent from EUR 224.8 million to EUR 236.4 million in the first half of 2010/2011. Due to the strong Retail business, the relative contribution to total sales revenues nevertheless declined from 73.6 percent to 69.5 percent. Earnings before taxes improved by 4.6 percent from EUR 29.0 million to EUR 30.0 million. (Note: The presentation of earnings before taxes (EBT) in the Production and Wholesale segment has been modified to better reflect the Retail result including vertical procurement prices in the Retail segment. The prior year figures have therefore been adjusted accordingly.) The number of employees increased from 783 to 789. At EUR 1.4 million, investments were up by 103 percent on the previous year (EUR 0.7 million). The Retail segment again reported a strong 27.7 percent increase in sales revenues from EUR 78.8 million to EUR 100.7 million, which was primarily attributable to the newly opened HOUSES OF GERRY WEBER. Like-forlike sales increased by 10.3 percent. The segment s contribution to total sales revenues increased from 25.8 percent to 29.6 percent. EBT rose from EUR 1.5 million to EUR 5.5 million. The number of employees increased by 282 from 1,247 in the previous year to 1,529. At EUR 2.8 million, investments were below the prior year level (EUR 4.2 million) and primarily related to new HOUSES OF GERRY WEBER. Both segments reported strong growth also on a quarterly basis. Sales revenues in the Production and Wholesale segment increased by 5.2 percent from EUR 125.8 million to EUR 133.3 million in the second quarter of 2010/2011. At EUR 18.5 million, earnings before taxes exceeded the prior year level. Retail revenues rose 28.6 percent from EUR 39.9 million to EUR 51.3 million, while EBT climbed from EUR 0.6 million to EUR 3.0 million. Risk report The risks to the company s future development have not changed materially since the beginning of the fiscal year. Risks jeopardising the company s existence did not exist and cannot be identified for the foreseeable future. The statements made in the consolidated financial statements for the year 2009/2010 therefore continue to apply. These statements and a description of the risk management system can be found on pages 40 to 44 of the 2009/2010 Annual Report. Special events occurring after the reporting date No events that require reporting have occurred. Opportunity and forecast report Economic researchers expect Germany s real GDP to grow by 2.8 percent this year, with the greatest stimulation believed to come from the domestic economy. Uncertainties relate to the natural and nuclear catastrophe in Japan, the political unrest in the Arab region, the weak economic environment in the USA and the further effects of the financial crisis. These factors could have an adverse impact on consumer sentiment. Economic researchers nevertheless expect the economic momentum to persist this year and next. (Source: Joint Economic Forecast Spring 2011) According to a survey conducted by the GermanFashion association in January 2011, the German fashion industry is optimistic about the year 2011. 61 percent of the companies surveyed expect much higher sales revenues, 33 percent expect sales to remain unchanged, and only six percent project lower sales. 51 percent believe that exports will improve, while 56 percent project an increase in incoming orders. However, only 29 percent of the respondents expect earnings to improve in the first quarter of 2011, while 49 percent believe that their profit situation will remain unchanged and 22 percent project lower earnings. The fast growth of the GERRY WEBER Group continued in the current fiscal year. The company projects consolidated sales revenues of approx. EUR 700 million for the current fiscal year, which represents an increase by more than 10 percent on the previous year. The EBIT margin will rise to over 14 percent. Sales are expected to increase at double-digit rates also in each of the next two to three years, while the EBIT margin should climb to 15 percent. The expectations are based on the excellent performance of both the Retail segment and the Wholesale segment. The company-managed HOUSES OF GERRY WEBER generated record like-for-like sales in recent months. Moreover, the GERRY WEBER Group intends to expand even faster than in the past and to 4
open some 65 to 75 company-managed HOUSES OF GERRY WEBER per year. The number of concession stores at El Corte Inglés, the largest Spanish department store chain, is to increase from 29 to about 40. In the Wholesale segment, the GERRY WEBER Group sees significant potential for growth outside Germany. As a global player, the GERRY WEBER Group will push ahead its internationalisation and continue to grow primarily in Asia, the Middle East and North America. The activities in France, Switzerland, Poland and Italy will also be expanded. As a strong partner to the retail sector, the GERRY WEBER Group plans to open some 200 new shop-in-shops in the current fiscal year while at the same time stepping up cooperations with retailers under maximum order limit arrangements. Calendar of financial events Report on the first nine months 14 September 2011 End of fiscal year 2010/2011 31 October 2011 Contact Jörg Stüber Phone +49 (0) 52 01 185 0 Fax +49 (0) 52 01 58 57 E-mail: j.stueber@gerryweber.de GERRY WEBER International AG Neulehenstraße 8 33790 Halle/Westphalia Phone +49 (0) 52 01 185 0 Fax +49 (0) 52 01 58 57 www.gerryweber.com An equity ratio of 74.3 percent means that the GERRY WEBER Group has an extremely solid capital structure. The company is thus well positioned towards debt capital providers and will fully finance the planned investments from its operating cash flow. 5
Interim consolidated financial statements Consolidated income statement to IFRS in EUR 000 Q2 Q2 H1 H1 2009/2010 2010/2011 2009/2010 2010/2011 Sales 165,733 186,988 305,498 340,440 Miscellaneous operating income +1,079 +4,474 +3,363 +6,273 Changes in inventories -15,311-29,271-4,489-5,141 Cost of materials -73,189-70,001-154,659-174,770 Personnel expenses -22,415-25,437-45,075-49,381 Depreciation/Amortisation -2,860-2,836-5,818-5,831 Miscellaneous operating expenses -32,789-38,456-65,291-70,352 Other taxes -305-380 -513-665 Operating result 19,943 25,081 33,016 40,573 Financial result Interest income +23 +33 +78 +87 Incidental bank charges -184-204 -321-387 Interest expenses -828-467 -1,612-1,076 Result from ordinary activities 18,954 24,443 31,161 39,197 Taxes on income Taxes of the fiscal year -6,559-8,359-10,595-13,405 Deferred taxes +92-418 -46-304 Net income 12,487 15,666 20,520 25,488 Earnings per share (basic) 0.60 0.68 0.99 1.11 6
Consolidated balance sheet to IFRS in EUR 000 Assets 31 Oct. 2010 30 April 2011 Non-current assets Fixed assets Intangible assets 13,565 17,116 Property, plant and equipment 102,505 106,242 Investment property 8,633 13,403 Financial assets 1,373 2,951 Other non-current assets Trade receivables 505 320 Other assets 5,236 3,401 Income tax claims 2,823 2,823 Deferred tax assets 3,492 5,754 138,132 152,011 Current assets Inventories 73,254 72,640 Receivables and other assets Trade receivables 57,275 55,476 Other assets 10,948 13,678 Income tax claims 1,001 1,001 Cash and cash equivalents 45,917 96,940 188,395 239,735 326,527 391,746 Equity and liabilities 31 Oct. 2010 30 April 2011 Equity Capital stock 21,317 22,953 Capital reserve 45,039 102,387 Retained earnings 98,295 98,295 Accumulated other comprehensive income/loss according to IAS 39-3,345-7,418 Exchange differences 17 162 Accumulated profits 49,201 74,689 210,524 291,068 Non-current liabilities Provisions for personnel 1,681 1,631 Miscellaneous provisions 2,263 2,515 Financial liabilities 21,786 18,177 Deferred tax liabilities 3,398 4,218 29,128 26,541 Current liabilities Provisions Tax provisions 4,408 4,136 Provisions for personnel 11,211 8,268 Miscellaneous provisions 6,370 11,358 21,989 23,762 Liabilities Financial liabilities 13,804 6,390 Trade payables 33,214 23,093 Miscellaneous liabilities 17,868 20,892 64,886 50,375 326,527 391,746 7
Statement of changes in Group equity (in EUR 000) Capital Capital Retained Accumulated Exchange Net Equity stock reserve earnings other differences income comprehensive income/loss As of 1 November 2010 21,317 45,039 98,295-3,345 17 49,201 210,524 Sale of own shares 1,636 57,348 0 58,984 Allocations to retained earnings of the AG 0 0 Net income 25,488 25,488 Adjustment of exchange differences 145 145 Dividends paid 0 Neutral currency forwards -4,073-4,073 As of 30 April 2011 22,953 102,387 98,295-7,418 162 74,689 291,068 Statement of changes in Group equity (in EUR 000) Capital Capital Retained Accumulated Exchange Net Equity stock reserve earnings other differences income comprehensive income/loss As of 1 November 2009 20,661 29,674 48,294-2,427-245 62,936 158,893 Sale of own shares 156 222 3,268 3,646 Allocations to retained earnings of the AG Net income 20,520 20,520 Adjustment of exchange differences -64-64 Dividends paid Neutral currency forwards 5,198 5,198 As of 30 April 2011 20,817 29,896 51,562 2,771-309 83,456 188,193 8
Segment information by divisions (IFRS) Q2 2010/2011 / 30 April 2011 Ladieswear Ladieswear Consolidation Total Production and Retail entries and Wholesale other segments EUR 000 EUR 000 EUR 000 EUR 000 Sales by segments (with external third parties) 133,273 51,256 2,459 186,988 (125,819) (39,852) (62) (165,733) EBT 18,512 3,000 2,931 24,443 (16,984) (590) (1,380) (18,954) Depreciation 598 1,087 1,151 2,836 (707) (976) (1,177) (2,860) Interest income 21 5 7 33 (2) (1) (20) (23) Interest expenses 381 56 30 467 (414) (41) (373) (828) Assets 143,284 85,831 162,631 391,746 (160,795) (68,201) (79,445) (308,441) Liabilities 106,647 100,411-106,200 100,678 (115,415) (79,674) (-74,841) (120,248) Investments in non-current assets 1,171 1,743 10,694 13,608 (593) (3,124) (1,935) (5,652) Number of employees 789 1,529 543 2,861 (783) (1,247) (481) (2,511) (previous year s figures in parentheses) Segment information by divisions (IFRS) H1 2010/2011 / 30 April 2011 Ladieswear Ladieswear Consolidation Total Production and Retail entries and Wholesale other segments EUR 000 EUR 000 EUR 000 EUR 000 Sales by segments (with external third parties) 236,450 100,658 3,332 340,440 (224,829) (78,811) (1,858) (305,498) EBT 30,097 5,497 3,603 39,197 (28,770) (1,521) (870) (31,161) Depreciation 1,159 2,160 2,512 5,831 (1,490) (1,923) (2,405) (5,818) Interest income 24 5 58 87 (14) (40) (24) (78) Interest expenses 841 122 113 1,076 (866) (82) (664) (1,612) Assets 143,284 85,831 162,631 391,746 (160,795) (68,201) (79,445) (308,441) Liabilities 106,467 100,411-106,199 100,679 (115,415) (79,674) (-74,841) (120,248) Investments in non-current assets 1,409 2,810 13,958 18,177 (694) (4,162) (2,705) (7,561) Number of employees 789 1,529 543 2,861 (783) (1,247) (481) (2,511) (previous year s figures in parentheses) 9
Consolidated cash flow statement to IFRS in EUR 000 H1 H1 2009/2010 2010/2011 Operating result +33,016 +40,573 Depreciation/Amortisation +5,818 +5,831 Income/loss from the disposal of fixed assets -340 +56 Increase/Decrease in inventories +4,996 +614 Increase/Decrease in trade receivables +6,058 +1,983 Increase/Decrease in other assets that do not fall under investing or financing activities -4,097-465 Increase/Decrease in provisions +423 +2,248 Increase/Decrease in trade payables -3,918-10,121 Increase/Decrease in other liabilities that do not fall under investing or financing activities +2,663-3,080 Income tax payments -12,850-13,678 Other non-cash expenses/income 0-2,050 Cash inflows/outflows from operating activities +31,769 +21,911 Interest income +78 +87 Incidental bank charges -321-386 Interest expenses -1,612-1,076 Cash inflows/outflows from current operating activities +29,914 +20,536 Proceeds from the disposal of property, plant and equipment and intangible assets 0 +231 Receipts for/purchases of investments in property, plant and equipment and intangible assets -7,131-10,408 Acquisition of fully consolidated companies 0-950 Purchases of investments in investment property -430-4,770 Proceeds from the disposal of financial assets 0 +175 Purchases of investments in financial assets -230-1,753 Cash outflows from investing activities -7,791-17,475 Proceeds from the sale of own shares +3,646 +58,984 Raising/Repayment of financial liabilities -8,926-11,022 Cash inflows/outflows from financing activities -5,280 +47,962 Movement in cash and cash equivalents +16,843 +51,023 Cash and cash equivalents at the beginning of the fiscal year +35,695 +45,917 Cash and cash equivalents on 30 April +52,538 +96,940 10
Explanatory notes GERRY WEBER International AG is a parent company as defined in Section 290 of the German Commercial Code (HGB). Pursuant to Article 4 of Directive No. 1606/2002 issued by the European Parliament and Council dated 19 July 2002, the Company, as an issuer of publicly traded securities, is required to prepare consolidated financial statements in accordance with IFRS accounting rules adopted by the EU. Accordingly, the present consolidated interim financial statements for the period ended 30 April 2011, were produced in conformance with IFRS. All standards effective and mandatory as of ended 30 April 2011 have been applied. The financial statements for the first six months and the second quarter of fiscal year 2010/2011 were prepared in accordance with IAS 34 (Interim Financial Reporting). The interim financial statements were not reviewed by the auditors. The accounting and valuation methods and the consolidation principles are basically the same as those applied to the consolidated financial statements for the year ended 31 October 2010. Changes in the basis of consolidation As of 1 April 2011, GERRY WEBER acquired 100 percent of Castro Deutschland GmbH & Co. KG, Cologne. The purchase price amounted to EUR 950k and was paid in cash. In the first half of 2010/2011, the company contributed about EUR 0.4 million to earnings after taxes. The contribution to sales revenues was negligible due to the ongoing reconstruction work. The following assets and liabilities (no financial liabilities) were taken over in the context of the acquisition: EUR millions Carrying amount to IFRS Recognised upon acquisition Intangible assets 0.0 3.0 Tangible fixed assets 0.2 0.2 Current assets 0.6 0.6 Total assets 0.8 3.8 Non-current liabilities 0.0 0.0 Current liabilities 0.8 1.5 Total liabilities 0.8 1.5 Net assets 1) 0.0 2.3 Acquisition cost 1.0 Negative difference 1.3 1) The determination of the fair values of the assets and liabilities has not been completed yet. Pursuant to IFRS 3.45, provisional values have therefore been recognised. The negative difference ( lucky buy ) resulting from the difference between the acquisition cost and the net assets recognised is booked as other operating income. 11
Currency translation The functional currency of GERRY WEBER International AG is the euro. The financial statements of the consolidated Group companies prepared in foreign currencies are translated according to the concept of the functional currency in compliance with IAS 21 The Effects of Changes in Foreign Exchange Rates. Given that the consolidated Group companies primarily do business in the economic environment of their respective country, the functional currency is always identical with each company s local currency. Accordingly, assets and liabilities are translated at the closing rate, while income and expenses are translated at the average annual exchange rate. Responsibility statement To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group for the remaining months of the financial year. Halle/Westphalia, 10 June 2011 GERRY WEBER International AG The Managing Board Gerhard Weber Doris Strätker Dr. David Frink Disclaimer This interim report contains forward-looking statements that are based on assumptions and/or estimates by the management of GERRY WEBER International AG. While it is assumed that these forward-looking statements are realistic, no guarantee can be given that these expectations will actually materialise. GERRY WEBER International AG Neulehenstraße 8 D-33790 Halle/Westphalia www.gerryweber.com