DESCRIPCIÓN DE LAS VARIABLES.

Property, plant and equipment mainly comprises shop fittings and fixtures as well as operating and office equipment. Property, plant and equipment changed as follows:

Changes in Property, Plant and Equipment in 2013

EUR thousand Land and buildings, including buildings on third-party land Other equipment, operating and office equipment Pre- payments Total Cost Balance at 1 January 2013 50,279 268,787 331 319,397

Foreign exchange differences –21 –136 –1 –158

Change in basis of consolidation – 758 36 794

Additions 331 28,959 1,081 30,371

Reclassifications 70 748 –818 –

Disposals –437 –6,384 – –6,821

Balance at 31 December 2013 50,222 292,732 629 343,583

Depreciation and impairment losses

Balance at 1 January 2013 14,997 140,900 – 155,897

Foreign exchange differences –7 –54 – –61

Change in basis of consolidation – 196 – 196

Additions 2,485 29,997 – 32,482 Reclassifications – – – – Disposals –104 –4,460 – –4,564 Balance at 31 December 2013 17,371 166,579 – 183,950 Carrying amount Balance at 1 January 2013 35,282 127,887 331 163,500 Balance at 31 December 2013 32,851 126,153 629 159,633 of which leased 18,765

97 Co ns o l i d ate d F i n a n cia l St ate m e nt s

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Changes in Property, Plant and Equipment in 2012

EUR thousand Land and buildings, including buildings on third-party land Other equipment, operating and office equipment Pre- payments Total Cost Balance at 1 January 2012 4,340 88,364 133 92,837

Foreign exchange differences –23 11 – –12

Change in basis of consolidation 47,973 156,060 72 204,105

Additions 1,148 30,507 1,092 32,747

Reclassifications 225 739 –966 –2

Disposals –3,384 –6,894 – –10,278

Balance at 31 December 2012 50,279 268,787 331 319,397

Depreciation and impairment losses

Balance at 1 January 2012 643 42,595 21 43,259

Foreign exchange differences –3 –72 – –75

Change in basis of consolidation 13,798 84,937 – 98,735

Additions 1,343 19,295 1 20,639 Reclassifications – 22 –22 – Disposals –784 –5,877 – –6,661 Balance at 31 December 2012 14,997 140,900 – 155,897 Carrying amount Balance at 1 January 2012 3,697 45,769 112 49,578 Balance at 31 December 2012 35,282 127,887 331 163,500 of which leased 16,092

In 2013, additions related largely to shop fittings and fix- tures for new retail and outlet stores opened in the reporting period.

Property, plant and equipment also includes leased operating and office equipment; most of the leases have a remaining term of up to five years.

No impairment losses or reversals of impairment losses were recognised in respect of property, plant and equipment in the reporting period or in the previous year.

Please refer to section 23 “Disclosures on Collateral” for information on the provision of items of property, plant and equipment as collateral.

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Further information on minimum lease payments for leases classified as finance leases (including leases for non-current intangible assets) is presented in the following:

Future Minimum Lease Payments for Finance Leases

EUR thousand 31/12/2013 31/12/2012

Minimum lease payments

Up to 1 year 5,506 5,168 1 to 5 years 12,961 11,871 18,467 17,039 Interest component Up to 1 year 1,028 1,054 1 to 5 years 1,244 1,428 2,272 2,482

Present value of minimum lease payments

Up to 1 year 4,478 4,115

1 to 5 years 11,717 10,443

16,195 14,558

None of these leases can be cancelled before the end of their contractual term.

Operating Leasing

In addition to finance leases, leases and rental agreements were entered into that must be classified as operating leases in accordance with IAS 17 on the basis of their economic sub- stance; this means that the leased asset concerned is allocated to the lessor. These primarily relate to rental agreements for properties used for the Group’s retail activities, as well as for office space used by Group companies and parts of the vehicle fleet.

(12) INVESTMENT SECURITIES

TT OFF SALE (NI) LTD., Belfast/United Kingdom, was formed in financial year 2008. As a founding shareholder, Tom Tailor GmbH holds 49.0% of the shares in TT OFF SALE (NI) LTD. The interest is included in the consolidated financial statements using the equity method.

The contribution was paid in cash and amounted to GBP 100 (corresponding to EUR104). In 2012, the company recorded revenue of GBP675 thousand (corresponding to EUR832 thou- sand) and a net loss for the year of GBP412 thousand (corres- ponding to EUR508 thousand). As the share of losses attribut-

able to the Group (EUR249 thousand) exceeded the carrying amount of the equity interest, the share of losses was only recognised in the Group up to the carrying amount of the equity interest (EUR0 thousand). The cumulative share of losses (EUR 1,561 thousand) was thus not included in the consolidated financial statements. The financial statements for financial year 2013 are not yet available.

In its annual financial statements for the year ended 31 December 2012, TT OFF SALE (NI) LTD. reported non-cur- rent assets in the amount of GBP502 thousand (correspond- ing to EUR615 thousand), current assets in the amount of GBP909 thousand (corresponding to EUR1,114 thousand), cur- rent liabilities in the amount of GBP3,994 thousand (corres- ponding to EUR4,898 thousand) and equity in the amount of GBP–2,584 thousand (corresponding to EUR –3,168 thousand). Tom Tailor GmbH supplied TT OFF SALE (NI) LTD. with mer- chandise valued at EUR905 thousand in the reporting period (2012: EUR1,584 thousand). The gross profit generated from this delivered merchandise was reversed in the con- solidated financial statements of TOM TAILOR Holding AG to the extent that TT OFF SALE (NI) LTD. had not resold it to third parties by the reporting date. It was charged to trade receivables because the carrying amount of the equity interest was not sufficient to eliminate these intercompany profits. Revenue was reduced by the same amount. Deferred tax assets were recognised in respect of the con- solidation adjustment.

TT OFF SALE (Ireland) LTD., Dublin/Ireland, was formed in 2009. Tom Tailor GmbH holds 49.0% of the shares in the company indirectly via TT OFF SALE (NI) LTD. The financial statements for financial year 2013 are not yet available.

According to the company’s annual financial statements, it recorded revenue of EUR1,487 thousand and a net loss for the year of EUR118 thousand in financial year 2012. TT OFF SALE (Ireland) LTD. has non-current assets in the amount of EUR98 thousand, current assets in the amount of EUR694  thousand and current liabilities in the amount of EUR 1,003  thousand. The prior-year results and the net loss for the year led to negative equity of EUR211 thousand.

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(13) OTHER CURRENT ASSETS

Other assets are composed of the following items:

Other Assets

EUR thousand 31/12/2013 31/12/2012

Creditors with debit accounts 7,359 3,937

Security deposits 4,622 2,099

Store subsidies 4,616 4,688

Receivables from online business 4,199 4,495 Procurement agent commissions 1,582 2,580

Prepaid rent 915 2,020 VAT receivables 248 967 Other assets 4,419 2,859 27,960 23,645 of which non-current 10,434 8,369 of which current 17,256 15,276

Other assets include receivables from online business with a carrying amount of EUR4,199 thousand (2012: EUR4,495 thou- sand). These receivables are not reported as receivables from end customers, but as receivables from the service provider concerned due to contractual arrangements. The contrac- tual right to receive the cash flows from the financial asset was transferred to the service provider, who is responsible for collecting the receivable and bears the full customer credit risk.

(14) INVENTORIES

Inventories are composed of the following items:

Inventories

EUR thousand 31/12/2013 31/12/2012

Raw materials, consumables and supplies 3,601 2,928

Merchandise 134,208 120,809

137,809 123,737

Write-downs to the lower net realisable value rose by EUR1,273 thousand compared with the previous year (2012: increase of EUR828 thousand). The change was recognised in the cost of materials item in profit or loss. This included ex- pected costs to sell that are still to be incurred. Write-downs reversed to profit or loss were recognised in connection with disposals of an immaterial amount.

The carrying amount of inventories, which were recognised at the lower of purchase costs and net realisable value, amounted to EUR6,516 thousand as at the reporting date (2012: EUR6,108 thousand). These include goods in transit in the amount of EUR33,463 thousand (2012: EUR23,099 thou- sand). The increase in inventories was primarily due to the increase in the number of controlled selling spaces and the positive rev enue trend. The expansion in the retail segment in particular led to a corresponding increase in inventories. The inventories recognised in the cost of materials in finan- cial year 2013 amounted to EUR408,265 thousand (2012: EUR296,546 thousand).

(15) TR ADE RECEIVABLES

Trade Receivables

EUR thousand 31/12/2013 31/12/2012

Trade receivables 47,945 49,845

Receivables from associate – 2,072

47,945 51,917

As in the previous year, trade receivables are due within one year. Their carrying amount corresponds to their fair value. At EUR2,072 thousand, the decline in receivables from asso- ciate is mainly due to impairment losses on receivables from TT OFF SALE (NI) LTD., Belfast, United Kingdom.

Changes to valuation allowances on current receivables within financial assets measured at (amortised) cost are presented in the following table:

Valuation Allowances on Current Receivables

EUR thousand 2013 2012

Balance at 1 January 5,619 3,632

Additions recognised in profit or loss 2,454 2,573

Utilisation –657 –511

Reversals –9 –75

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Note s to the Consolidated Financial St ate me nt s

The receivables presented above include amounts that were past due at the reporting date, but for which the Group has not recognised any impairment losses (see age structure ana lysis). This is because there were no material changes to customer credit quality and the outstanding amounts are still deemed to be collectible. This assessment is based on the collateral, instalment agreements and documents on financial position available to the Group in most cases, as well as its right of set-off against the counterparty.

The age structure of trade receivables as at 31 December is as follows:

Age Structure of Trade Receivables

EUR thousand 31/12/2013 31/12/2012

Neither due nor impaired 35,489 37,967 Carrying amount of receivables impaired 2,685 4,592 Past due but not impaired

< 30 days 4,889 5,035

30–90 days 3,196 2,301

> 90 days 1,686 2,022

47,945 51,917

Impairment testing of trade receivables takes into account all changes to credit quality since payment terms were granted until the reporting date. Supplier credits granted to customers are classified as not due. The broad customer base meant that there was no significant credit risk concentration as at the reporting date.

Expenses relating to losses on receivables and valuation allowances on receivables totalled EUR3,873 thousand (2012: EUR3,075 thousand).