ANNUAL REPORT - newlookgroup.com

1 ANNUAL REPORT2015/16P/ 2 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 ANNUAL REPORT & 3 Overview 04 Chairman s statement 14 CEO s statement 16 Strategic REPORT Our business model 20 Year in review 24 Financial review 32 Risks and uncertainties 42 Corporate social responsibility 46 The Directors REPORT Directors REPORT 50 Directors responsibilities statement 54 The Board 56 Financial statements Independent auditors REPORT group accounts 60 Consolidated income statement 61 Consolidated statement of comprehensive income 62 Consolidated balance sheet 63 Consolidated statement of changes in equity 65 Consolidated statement of cash flows 66 Notes to the group financial statements 67 Independent auditors REPORT company accounts 110 Company balance sheet 111 Company statement of changes in equity 112 Notes to the company financial statements 113 Contacts 119 CONTENTSP/ 4 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 ANNUAL REPORT & 5 OVERVIEWP/ 6 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 STORE NUMBERSO wned FY16 FY15 Asia China 85 19 Europe Belgium 10 10 France 28 28 Netherlands* 13 Germany* 2 23 Poland

2 17 13 Republic of Ireland 29 29 United Kingdom 575 569 Total owned 746 704 FranchiseAsia 14 19 Middle East 67 70 Europe 11 16 Total franchise 92 105 TOTAL OWNED AND FRANCHISE 838 809* includes concessions storesOwned stores*FranchiseE-commerce (Own website & 3rd party partners)KEYGLOBALREACHANNUAL REPORT & 7P/ 8 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 New Look is an international multichannel retail brand, offering exciting, on-trend value-fashion for women, men and teenage girls, with 838 stores 575 in the UK, plus a further 263 around the worldWe also have a fast-growing e-commerce proposition, serving over 120 countries worldwide supported by convenient delivery options and our website is the third most visited fashion website in the UK*.

3 We have over million email subscribers and more than million followers on social media. Our flexible fast-fashion business is built on an agile global supply chain with the ability to respond quickly to new trends. We focus on delivering value for money and newness , with hundreds of new product options online and in-store every week. Our ranges of apparel, footwear and accessories are designed to sustain broad age appeal and global relevance. We strive for consistent product handwriting across all ranges to ensure we can provide complete and compelling fashion looks. The strategic pillars of our business Brand, Multichannel, Product, Menswear and International are to be complemented with a further pillar focussed on improving gross margin.

4 Our great people help us achieve first-class service standards wherever, whenever and however customers engage with NEW LOOK *Measures by experian Hitwise March 2016 : Shopping and Classifieds Apparel and AccessoriesANNUAL REPORT & 9P/ 1 0 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 No. 1 UK womenswear retailer for women under 35* womenswear retailer overall in the UK* A top ten ranking in the ANNUAL UK Customer Satisfaction Survey** Our first 6 New Look Menswear stores launched in the UK 66 more stores opened in China Strong sales growth of + from our own website 3rd party E-commerce partnerships delivered million in sales Successful debt refinancing following the acquisition by Brait * Measures by Kantar Worldpanel, 52 weeks to 13 March 2016 , by value** Institute of Customer Service UK Customer Satisfaction Survey (January 2016 ), Retail (Non Food) sector, versus a cross section of non-food retailers Meaning Brait SE ( Brait )

5 , an investment holding company or any of its affiliates or direct or indirect subsidiaries from time to timeKEY OPERATIONAL ACHIEVEMENTSANNUAL REPORT & 1 1P/ 1 2 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 1, increased by + + sales were + against last year operating profit increased + profit increased by + (FY15: million) EBITDA increased by + after tax** (FY15: million profit) FINANCIALHIGHLIGHTS** On a continuing operations basis. For our discussion of the financial results and a full definition of terms see the Financial ReviewANNUAL REPORT & 1 3 1, increased by + + sales were + against last year operating profit increased + profit increased by + (FY15: million) EBITDA increased by + after tax** (FY15: million profit) ** Excluding net acquisition and refinancing costs of million, underlying profit after tax was millionP/ 1 4 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 ANNUAL REPORT & 1 5 CHAIRMAN SSTATEMENTNew Look is recognised throughout the UK as a leading name in the value-fashion market, renowned for hitting all the key trends.

6 As international awareness of the brand increases, there are exciting prospects for future growth. This made the business an attractive investment opportunity for the Brait team, which acquired New Look in June 2015. From the outset, I ve been impressed by the strategic focus demonstrated across the business, resulting in the robust operating performance of recent years, and I m proud to have been appointed Chairman of this strong business. We also consistently generate strong cash flow, which facilitates our exciting, coherent and disciplined growth strategy which is focussed on our key strategic initiatives and pursued relentlessly. We ve invested in the infrastructure and systems necessary to underpin our growth plans, which has enabled us to become a truly international multichannel business.

7 Our extensive estate of stores is complemented by a well-developed online presence in the UK. New Look has witnessed early success in China, good initial performance from our new stores in our other key international markets in France and Poland and encouraging reads from Germany. In the year ahead, our international reach will be extended by enhancements to our online capabilities and expansion of our footprint abroad. As part of our drive to support growth, we re moving our London Support Centre to new, larger premises in early Look has a unique proposition. Our compelling mix of fashion and value places us firmly in the fastest growing sector of the UK s apparel and accessories market and is a highly attractive unique selling point in international markets.

8 Thanks to the flexibility and strength of our global supply chain, New Look s lead-times and speed of reaction to trends and market changes remain at the forefront of the industry. Following the acquisition of the business, members of the Brait team joined the Board in the summer of 2015. The focus, discipline, commitment, and significant retail experience which distinguishes our management team, led by Anders Kristiansen, fosters a strong internal culture centred on our brand values and proven strategy. This has enabled delivery of this year s strong performance and sets a stable platform for the long term goals to which we are all aligned. I also want to acknowledge the enthusiasm and hard work of the people in our support centres and stores around the world who deliver the great product ranges and customer experience that makes New Look special.

9 Their contribution is crucial to our continued past year has been transformational for New Look - moving into new ownership under Brait, which is fully committed to long-term support for the business and its strategy. I am confident this will enable Anders and his team to continue building on their recent successes throughout the year ahead and GnoddeChairman27 May 2016 New Look is a success story thanks to our attractive value-fashion offer, reflected in an impressive market shareP/ 1 6 NEW LOOK RETAIL GROUP LIMITEDANNUAL REPORT & JUNE 2016 Following the successful completion of the sale of New Look to Brait and refinancing of our debt, we ve continued to deliver on our long-term strategic aims while maintaining focus on the day-to-day running of the business.

10 This ensured we delivered significant progress in each of our strategic initiatives this year: Brand, Multichannel, International, Product and Menswear as well as a good financial brand is identified by our entrepreneurial spirit, our passion for product, our retailing mindset and the way we place our customers at the very heart of everything we do, consistently providing the fashion know-how, newness and value that wows our customers. We ve continued investing in store refurbishment, delivering a further 114 UK and international stores in our concept format during FY16. We aim to have all our stores converted to this format within the next three years.