Adler Modemaerkte : Free Cash Flow of €23.8 Million Significantly Above Prior-year Figure

Press Release from Adler Modemärkte AG

Preliminary Q2 Figures Confirmed: Adjusted Operating Profit Up 13.3%

Free Cash Flow of €23.8 Million Significantly Above Prior-year Figure

Cash and Cash Equivalents Robust at €58.7 Million

Haibach (near Aschaffenburg), 2 August 2018: ADLER Modemärkte AG confirmed the preliminary figures for the second quarter of 2018 that it had announced on 18 July 2018: Although revenue declined by 3.4% to €140.4 million during the quarter (Q2 2017: €145.3 million), EBITDA (adjusted for negative non-recurring effects) increased to €18.7 million (reported: €17.9 million). This represents a 13.3% increase against the comparable prior-year figure of €16.5 million (reported: €22.7 million). The Q2 consolidated net profit, which in the previous year had been significantly influenced by extraordinary other operating income from real estate transactions, totalled €8.3 million (Q2 2017: €12.4 million).

As announced, as at 30 June 2018, ADLER reported cumulative consolidated revenue of €243.1 million (H1 2017: €254.0 million) and EBITDA of €0 million (H1 2017: €10.2 million; like-for-like: €4.0 million). The consolidated net loss declined to €9.0 million (H1 2017: net loss of €0.8 million). Operational improvements and efficiency enhancements led to a significant increase in the gross profit margin from 52.9% to 54.3% as compared to the first half year 2017.

Free cash flow improved by more than 90%

In Q2 2018, free cash flow amounted to €23.8 million, representing a year-on-year improvement of 92% (Q2 2017: €12.4 million). Free cash flow for the first half of the year amounted to €2.0 million (H1 2017: €8.0 million).

As at 30 June 2018, Adler again reported a high cash position of €58.7 million (30 December 2017: €63.3 million), meaning that the decrease in cash and cash equivalents typically seen in the first half of the year was limited to €4.6 million. As at 30 June 2017, ADLER's cash position had amounted to €40.7 million.

ADLER CEO acquires approximately 1% of shares in Company

At the end of July, Thomas Freude, CEO of Adler Modemärkte AG, purchased a total of approximately 182,000 shares in the Company for around €764,000. He therefore now holds an interest of nearly 1%. "With my commitment as a shareholder, I naturally want to set an example; the volume is far more than symbolic. I firmly believe in our 2020 Strategy and I am convinced that we will soon return ADLER to its former strength", said Freude, commenting on the transaction.

Forecast for full year 2018 confirmed

On 18 July, the management confirmed the outlook for the full year it issued in March 2018. According to that outlook, ADLER's Executive Board expects full-year revenue to remain roughly at the same level as in the previous year (€525.8 million). EBITDA is expected to significantly exceed the adjusted 2017 figure (€25.4 million) and amount to between €26 million and €29 million. As predicted, the ADLER 2020

Strategy and the already announced switch in the logistics service provider will begin to have a positive effect for the first time in financial year 2019.

The full report on the first half of 2018 is available for download athttp://www.adlermode-unternehmen.com/en/investor-relations/reports-and-publications/financial-reports.

ADLER Group's key performance indicators

(€ million) Revenue Gross profit

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

Earnings before interest and taxes (EBIT)

Consolidated net profit/loss Earnings per share (EUR)*

H1 2018	Q2 2018
243.1	254.0 -4.3%	140.4
131.9	134.5 -1.9%	81.8
0.0	10.2 -100%	17.9
-8.3	1.9 -536.8%	13.6
-9.0	-0.8 -1,025%	8.3
-0.48	0.45

Q2 2017	Change
145.3	-3.4%
81.8	-
22.7	-21.1%
18.6	-26.9%
12.4	-33.1%
0.67	-32.8%

*based on 18,510,000 no-par value shares.

30 Jun.

2018

31 Dec.

2017

Total assets (€ million) Equity (€ million) Equity ratio Debt/equity ratio

241.1 100.0 41.5% 1.41

Change -3.9% -10.0% -2.7pp

Cash and cash equivalents (€ million)Employees

Total number of stores

63.3 3,787 184

-7.3% -0.4% -2.2%

Press enquiries Adler Modemärkte AG:Katrin Schreyer

Investor Relations

Tel.: [phone]

E-mail:[e-mail]

About Adler Modemärkte AG:

Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2017, the Group earned €525.8 million in revenue and generated €32.0 million (adjusted:€25.4 million) in EBITDA. As at 30 June 2018, ADLER has approximately 3,800 employees and currently operates 180 stores, 153 of which are located in Germany, 22 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.

For more information:www.adlermode-unternehmen.com;www.adlermode.com