Douglas uneventful, but slight beat.

All,

Douglas informed us the other day that following a review they would be closing 70 stores - all of which were in international businesses. The presentation today does not make any further comments on what the cut will be in Germany.

Financials:

- Uneventful, but slight beat - particularly in Germany - possibly the result of A&M cost control. No effects from German restructuring visible.

- Sales are on target. Germany SouthWest and Eastern slightly higher, France lower.

- The online business contributed strongly to growth although primarily driven by acquisitions. The +16.5% LfL growth is low in the online world.

- Adjusted EBITDA is E5m better than planned. Germany with a E10m beat, France and Eastern on target, SouthWest with a E5m shortfall. The company has taken a E22m inventory write-off for which that EBITDA is adjusted. While we usually don’t adjust for such write-offs, the one-off nature - likely linked to store closures - suggests its legitimate.

- All other metrics are largely on target, resulting in the cash balance being E10m higher than estimated due to slightly better WC movement.

We are looking forward to hearing about developments in Germany.

Wolfgang