DGAP-News: TOM TAILOR Group signs Term Sheet for loan agreement until end of September 2022 and thus secures the long-term financing of the Group

TOM TAILOR Group signs Term Sheet for loan agreement until end of September 2022 and thus secures the long-term financing of the Group

Hamburg, 09. Oktober 2019. TOM TAILOR Group today came to an agreement with the consortium banks and majority shareholder Fosun on a new financing structure and the associated contributions to be made by the respective parties, and they signed a corresponding Term Sheet. The parties aim to finalise the contract documentation by the end of October 2019 at the latest. "The new agreement, which will run until the end of September 2022 and has a total volume of EUR365 million secures the long-term financing of the TOM TAILOR Group and allows for more flexibility with regard to future growth", says Thomas Dressendörfer, CFO of TOM TAILOR Group. The initial appointment of Thomas Dressendörfer as Chief Financial Officer of the Company took place in June 2016 and ended in June 2019. Dressendörfer extended his contract by a further nine months until March 31, 2020 in order to negotiate and successfully conclude the new financing structure for the Group. His successes also include the cost-cutting and efficiency program RESET which he initiated in 2016 and the three capital increases implemented in 2016, 2017 and 2019.

More conservative assessment of BONITA's future business performance results in an adjustment of the preliminary figures for fiscal 2018

Due to the planning timeframe through to 2022, as laid out in the Term Sheet and based on the Independent Business Review (IBR) carried out for this time period by BCG, the Management Board is adjusting the preliminary results for fiscal 2018 that were published on 13 May 2019. The adjustment is mainly due to the increase in provisions for contingent losses as a result of a more conservative assessment of the future business performance. In addition, the accounting standard IFRS 5 (discontinued operations) will no longer be applied. The reason for this is that the Management Board has adjusted its estimate with regard to the timing of a potential sale of BONITA.

Based on the provisional, unaudited results, the Management Board expects for the TOM TAILOR brand a turnover of EUR618.1 million (13 May 2019: EUR616.9 million), an EBITDA of EUR64.0 million (13 May 2019: EUR70.6 million) and an EBITDA margin of 10.4% (13 May 2019: 11.4%).

Turnover at the BONITA division remains at EUR225.7 million. EBITDA, however, has decreased to EUR-38.2 million (13 May 2019: EUR-24.6 million) according to the provisional, unaudited results.

As a result of the adjustment, gross profit for TOM TAILOR will increase marginally to EUR349.7 million (13 May 2019: EUR349.4 million) and for BONITA it will remain at EUR140.1 million. "With the increase in provisions and the resulting adjustment of the 2018 figures, we are taking the declining operating development of BONITA into account. At the same time, we are sticking to our strategic growth initiatives for the TOM TAILOR brand, such as strengthening our women's segment, growth in digital channels and further internationalisation. TOM TAILOR's successes to date confirm us in this direction", explains Dr Heiko Schäfer, CEO of the TOM TAILOR Group.

Once the financing agreement has been finalised, the company also plans to complete and publish the financial statements and consolidated financial statement for 2018.

About TOM TAILOR Group
The TOM TAILOR Group is an international, vertically integrated fashion company focused on casual wear in the medium price segment. The product portfolio is complemented by an extensive range of fashionable accessories. The company thus covers the different core segments of the fashion market. TOM TAILOR brand is marketed through the retail and wholesale segments, and thus through single-label stores as well as wholesale partners. These include 454 TOM TAILOR stores and 185 franchise stores, 2.541 shop-in-shops and around 7.393 shop-in-shops and around 32 countries.

Along with its 727 retail stores, BONITA has 80 shop-in-shop spaces. The collections of both brands are also available through their respective online shops.

Information is also available at www.tom-tailor-group.com

Investor Contact
Viona Brandt
Head of Investor Relations
TOM TAILOR Group
Telefon: +49 (0) 40 58956-449
E-Mail: [email protected]

Media Contact
Harriet Weiler
Head of Corporate Communications
TOM TAILOR Group
Telefon: +49 (0) 40 58956-168
E-Mail: [email protected]