Lindex Year-End Report

1 September 2005–31 August 2006

September–August 2005/2006 • The Lindex Group’s sales increased by 6.5 per cent, excluding the divested Twilfit chain. Including Twilfit, sales increased by 0.2 (-2.8) per cent to SEK 5,212M (5,202). Same stores sales, excluding the currency effect, rose by 2.9 (-1.4) per cent. • The operating margin increased to 11.5 (8.0) per cent and the gross margin amounted to 59.0 (57.5) per cent. • Operating profit before financial items, taxes and write-down of brand names and goodwill, if any, EBITA, grew strongly and amounted to SEK 598M (444). This resulted in an EBITA margin of 11.5 (8.5) per cent. • The EBITA margin in the Nordic operations amounted to 13.1 (11.1) per cent. • Profit after tax increased significantly and amounted to SEK 504M (327), equivalent to SEK 7.30 (4.80) per share. • The cash flow from current operations amounted to SEK 581M (527) for the year. • Against the background of the weak development in the German operation, the target of achieving a positive result before tax by the first quarter of the 2006/2007 financial year will not be achieved in Germany. • The Board of Directors has decided to recommend that the Annual Meeting of shareholders sets a dividend of SEK 5.00 per share for the 2005/2006 financial year. Fourth quarter 2005/2006 • The Lindex Group’s sales increased by 3.6 per cent, excluding the divested Twilfit chain. Including Twilfit, sales fell by 2.4 (+1.7) per cent to SEK 1,309M (1,341). Same stores sales, excluding the currency effect, increased by 1.4 (1.8) per cent. • Profit after financial items rose to SEK 144M (119). The EBITA result fell to SEK 144M (146). This resulted in an EBITA margin amounting to 11.0 (10.9) per cent. • The operating margin increased to 11.0 (8.9) per cent and the gross margin amounted to 56.1 (56.7) per cent. • Profit after tax amounted to SEK 104M (124), equivalent to SEK 1.50 (1.80) per share. For further information, please contact: Göran Bille, President and CEO Telephone: +46 (0)31-739 50 02 Mobile: +46 (0)703-44 43 04 Peter Andersson, Chief Financial Officer Telephone: +46 (0)31-739 50 10 Mobile: +46 (0)705-84 44 37