ORCHESTRA-PREMAMAN (EPA:KAZI) FIRST NINE MONTHS OF 2018-2019 REVENUE (unaudited data)

Transparency directive : regulatory news

10/01/2019 18:00

10 January 2019

* First nine months revenue: EUR433,6m (-7.6%)
* Inflection of third semester trend (-5.6%):
  - good performance on September and October : -4.5% on the French market
    down of -7.8% (source: Institut Français de la mode)
  - November not representative because of social movements in France
* Key strategic priorities have been confirmed: inventory reduction policy
  and a record high recruitment of new Club members.

FIRST NINE MONTHS OF 2018-2019 REVENUE (unaudited data)
(March 1, 2018 to November 30, 2018)

IFRS - In EURm   first 9 months  first 9 months  9 months 2018/2019 vs.
Unaudited           2017/2018      2018/2019       9 months 2017/2018

Branches             251,9           232,4               -7,7%
Commission-
affiliation          193,9           176,9               -8,8%
Internet              14,3            15,0                4,5%
Trading & Misc.        9,1             9,4                3,8%
Consolidated
revenue              469,1           433,6               -7,6%
of which France      296,5           271,0               -8,6%
of which Belux        59,4            54,3               -8,4%
of which
International
(excl. Belux)        113,2           108,3               -4,4%

During the first nine months of 2018/2019, i.e. between March 1 and November
30, 2018, the Orchestra-Prémaman Group posted consolidated revenue of
EUR433.6m, down -7.6% relative to the year-earlier period.

This decline in revenues was in step with generally tough economic climate
(-8.6% compared with 2017): France witnessed the worst first-half period in
terms of consumption in five years (source: Kantar Worldpanel survey H1 2018 -
France textiles/shoes/accessories). Top-line performances also suffered
considerably from the renegotiation of the Group's debt financing.

September decreased by -18.6% in comparison with 2017 due to adverse weather
conditions with high temperatures during the back-to-school period which wasn't
conductive to consumption. However, the Group recorded a good performance for
October mainly thanks to better transformation rates (revenue +13.7% compared
with 2017) starting an upward trend combined with a cumulated performance of
-4.5% vs 2017 on the first two months of this quarter, validating sales plans
developed during summer time. Unfortunately, this trend reversal has been
disrupted by social movements in France since November despite the Group
achieved around 40% of its revenue abroad (revenue: -8.4% at Group level and
-10.2% in France).

Third quarter cumulated revenue was down -5.6% at Group level impacted by the
weight of France of which performance declined by -6.1% vs 2017. This trend
nevertheless remains higher than the market with a decrease of -7.5% vs 2017
(source: IFM).

Cumulated performance in France at November end was -8.6%:
- The textile business saw a 10.4% slide revenue, reflecting the market trend
  of the specialist children's clothing chain sector (-7.5%, source: IFM)
- The Childcare Products business continued to chalk up strong momentum, with
  sales increase +4.8%

In France, social movements did not result in an increase of purchase online as
compensation (source: Fevad). Yet, there was a noteworthy performance related
to online sales, especially during Black Friday; the online business continued
to deliver growth (+4.5%), driven by the marked acceleration in online sales of
childcare products (+115.2%) and the development of the following websites:
Greek (+58.5%), Swiss (+39.6%) and Belgian (+9.4%).

Trends in Belgium and international (excluding Belgium) markets were similar,
ending the period down -8.4% and 4.4%, respectively.

As a mean to secure future sales, the Group aimed to actively recruit new Club
members following sales plans developed last summer. At November 30 2018, the
Group had a record high 2.1 million Club card-holders, an increase of +14.8%
compared with 30 November 2017. Note that around 90% of Group revenue stems
from sales to Club card-holders.

THIRD QUARTER 2018-2019 REVENUE (unaudited data)
(September 1st, 2018 to November 30th, 2018)

IFRS - In EURm         3rd Quarter    3rd Quarter   Q3 2018/2019 vs.
Unaudited               2017/2018      2018/2019     Q3 2017/2018

Branches                   87,8           83,0           -5,5%
Commission-affiliation     68,4           63,4           -7,3%
Internet                    6,4            6,8            6,4%
Trading & Misc.             1,8            2,0            9,3%
Consolidated revenue      164,4          155,2           -5,6%
of which France           104,5           98,1           -6,1%
of which Belux             19,2           18,3           -4,5%
of which International
(excl. Belux)              40,7           38,7           -4,8%

During the third quarter of 2018/2019, i.e. September 1 to November 30 2018,
the Orchestra-Prémaman Group posted consolidated sales of EUR155.2m, down 5.6%
relative to year-earlier period on a market with a -8.9% performance.

All effects have been mentioned above which are:

- September impacted by adverse weather conditions with high temperatures
  leading to a negative effect on back-to-school campaigns
- However, October showed good results mainly thanks to higher transformation
  rates compared with 2017
- Although 40% of the revenue is made abroad, November suffered from social
  movements in France

STORE NETWORK (unaudited data)

Store Network
in number and
thousands of m2    28/02/2018          30/11/2018               Change
unaudited         Number  Surface   Number  Surface  30/11/2018  vs. 28/02/2018
                           area              area      Number     Surface area

Branches             315    196,8     318    201,5        3            4,8
Commission-
affiliation          248    115,7     240    117,5       -8            1,8
Total                563    312,5     558    319,0       -5            6,5
Textile              414      138     388    129,7      -26           -8,3
Mixed stores and
megastores Outlet
Stores                21     10,6      25     12,7        4            2,1
Total                563    312,5     558    319,0       -5            6,5
o.w. France          312    195,3     310    201,2       -2            5,9
o.w.                  62     54,2      59     53,2       -3           -1,0
o.w. International
(excl. Belux)      189     62,9     189     64,6        0            1,7

The Group pushed ahead with the transformation of its retail network in the
first nine months, with:
- A major shift in store format towards mixed stores and megastores,
- The opening of four new clearance stores, reflecting the Group's goal of
  actively reducing inventory levels.

Large format stores (mixed and megastores) now represent 55.4% of the network's
store space and a total of 145 stores.

The Orchestra-Prémaman is committed to a strategy of reducing inventory by
developing Large Format stores combining children's clothing, maternity wear
and childcare products all under one roof.

Upcoming events
Fourth quarter revenue of 2018/2019, on April 11 2019 after market close

Contacts :
ACTIFIN - Stéphane RUIZ - 01 56 88 11 15 - sruiz@actifin.fr

ACTIFIN - Victoire DEMEESTERE - 01 56 88 11 24 - vdemeestere@actifin.fr

ORCHESTRA-PREMAMAN
A public limited company with capital of EUR12.159.825
Head office: 200 avenue des Tamaris, Zac Saint Antoine, 34130 Saint-Aunès.
Registration n° : 398 471 565 in the Montpellier Trade and Companies Register

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19/06/2020 19:18

ORCHESTRA-PREMAMAN (EPA:KAZI) FIRST NINE MONTHS OF 2018-2019 REVENUE (unaudited data)

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