Tiger

Zebra A/S – Annual Report 2014 Management Commentary
Annual
Report
2014
Zebra A/S
TEA CUP
DKK 20
Content
04 This is Tiger
07 Key figures
09 Operating and financial review 2014
15 Strategy
23 Corporate social responsibility
27 Corporate governance
31 Risk management
34 Board of Directors
37 Executive Management
39 Consolidated financial statements
69 Financial statements – Parent Company
91 Management statement
92 Independent Auditors’ opinion

This is Tiger
Zebra, the parent company of the TIGER stores, is a rapidly The products are sold at affordable prices and have broad
growing international variety retailer offering a broad appeal across age and income groups.
range of mostly own-branded, own-designed products
that are marketed internationally through the Group’s Across markets, the Scandinavian decor is a differenti-
stores under the TIGER, Flying TIGER and TGR brand ating characteristic of the TIGER stores. They are bright,
names. By the end of 2014 the Group operated 411 easy to navigate and designed to provide customers with
stores in 26 countries. a fun and pleasant shopping experience.
Working continuously with innovative design and product Founded in 1995 and headquartered in Copenhagen,
development, TIGER has a dynamic product assortment Denmark, Zebra employs more than 3,000 people world-
and introduces up to 300 new products every month. wide and generated revenue of DKK 2,464m and EBITDA
The assortment includes categories ranging from home, of DKK 364m in 2014.
hobby and party over toys, electronics and gadgets, to
food and accessories, with the products having a distinct
Scandinavian design DNA and often a humorous twist.
The evolution of Tiger
Danish “one dollar” Stylish international

Concept discount concept fun shopping concept
Own brand,
Products Clearance Europe
packaging and design
Multi round price points

Pricing 10 kroner
(DKK 10, 20, 30, 40, 50, 100)
Products Sporadic
2 product campaigns
launches per month
Brand The name of a store a growing

consumer brand
1995 Today
Markets and stores JAPAN
Existing markets 2013

13 (+11)
New markets 2014
Total number of stores 2014 (Net new stores 2014)
ICELAND
5 (+1)
FINLAND
NORWAY 23 (+2)
FAROE ISLAND
26 (+4)
1 (+0)
SWEEDEN
37 (+7) ESTONIA
2 (+2)
SCOTLAND
4 (+0)
LATVIA
5 (+0)
DENMARK
ENGLAND 69 (+5) LITHUANIA
IRELAND 36 (+11) 6 (+0)

HOLLAND POLAND
13 (+5) WALES
12 (+2) 8 (+5)
3 (+2) BELGIUM
GERMANY
4 (+3) 23 (+7) CZECH REPUBLIC
3 (+3)
AUSTRIA
FRANCE 1 (+1)
1 (+1)
ITALY
PORTUGAL
44 (+23)
10 (+6) SPAIN
GREECE
52 (+18) 9 (+2)
CYPRUS
1 (+1)
2014
Highlights
Revenue growth
44%
DKK 2,464 million
EBITDA growth
Before special items
50%
DKK 364 million
Profit growth
Before special items,
after tax
68%
DKK 196 million
MARSHMALLOWS
DKK 20
Key figures
DKKm 2014 2013 2012 20111 20101
Income statement
Revenue 2,464.2 1,710.9 1,100.2 710.1 519.8

Gross profit 1,529.9 1,035.8 660.0 419.0 299.7
EBITDA before special items 364.2 242.3 164.9 109.6 73.0
EBIT before special items 286.5 194.3 137.6 93.1 62.4
EBIT 286.5 223.9 132.4 93.1 62.4
Profit before special items, after tax2 195.7 116.7 92.7 63.8 44.4
Profit for the year 195.7 147.7 88.8 63.8 44.4
Financial position at 31 December
Total assets 1,555.9 929.7 580.6 309.0 203.2

Net working capital 318.2 101.9 116.0 65.2 37.0
Net interest-bearing debt 155.2 12.2 27.6 (19.1) (28.9)
Equity before recognition of provisions for
acquisition of non-controlling interests 605.3 377.0 232.2 157.8 109.7
Provisions for acquisition of non-controlling interests 704.8 363.5 234.0 - -
Equity according to IFRS (99.5) 13.5 (1.8) 157.8 109.7
Cash flow and investments
Cash flow from operating activities 65.0 139.3 74.3 62.6 34.9
Cash flow from investing activities (199.8) (148.6) (97.6) (52.0) (25.2)
Free cash flow (134.8) (9.3) (23.3) 10.7 9.7
Key ratios
Revenue growth 44.0% 55.5% 54.9% 36.6% 29.0%

Gross margin 62.1% 60.5% 60.0% 59.0% 57.7%
EBITDA margin before special items 14.8% 14.2% 15.0% 15.4% 14.0%
EBIT margin before special items 11.6% 11.4% 12.5% 13.1% 12.0%
Profit margin before special items, after tax 7.9% 6.8% 8.4% 9.0% 8.5%
Profit margin 7.9% 8.6% 8.1% 9.0% 8.5%
Comparable store sales growth3 (1.0)% 1.0% 1.6% 4.2% 11.0%
Net working capital, % 12.9% 6.0% 10.5% 9.2% 7.1%
Leverage 0.4x 0.1x 0.2x (0.2)x (0.4)x
Number of stores, including joint ventures 411 289 197 120 86
Proforma consolidated financial information4
Proforma revenue 2,562.8 1,735.0 - - -

Proforma gross profit 1,582.9 1,049.2 - - -
Proforma EBITDA before special items 371.1 245.3 - - -
Proforma gross margin 61.8% 60.5% - - -
Proforma EBITDA margin before special items 14.5% 14.1% - - -
1
s of 1 January 2012, accounting policies were changed to IFRS. Comparative figures for 2010-2011 are presented in accordance with
A
the Danish Financial Statements Act. Difference between the previous accounting policies and IFRS mainly relate to the accounting for
put options held over non-controlling interests, amortisation of goodwill, and valuation of residual values regarding leasehold rights.
2
Profit before special items, after tax is defined in Note 1.1.
3
Comparable store sales growth is defined in Note 1.1 and for 2010 includes Danish stores only.
4
Proforma consolidated financial information reflect a proforma proportionate consolidation of the 50% owned Japanese joint venture.
TIGER
OXFORD STREET
LONDON
New store opened in 2014
Operating
and financial
review 2014
2014 was another year of profitable revenue growth, driven by new
store openings and a strengthened corporate backbone. The expansion
of the international store network – an average of more than two store
openings per week in 2014 – paved the way for record revenue of DKK
2,464m, an increase of 44% compared to 2013, and profit for the year of
DKK 196m. Management and the Board of Directors consider the oper-
ational and financial performance of 2014 to be satisfactory, and overall
in line with expectations. The increase in net working capital (“NWC”),
however, was higher than expected and consequently Management has 2014 revenue
launched initiatives to reduce NWC.
Zebra opened net 122 new stores in 2014 (net 111 new stores exclud- Net
Revenue Growth new
ing the Japanese joint venture) and entered 5 new markets. The TIGER (DKKm) (%) stores
concept was well received in all new markets. By the end of 2014, Zebra
operated 411 stores in 26 countries. Denmark 564 6% 5
Italy 323 110% 23
England 317 67% 11
Based on the progress made in 2014, Zebra is well positioned to continue
Spain 313 67% 18
the growth in 2015, while at the same time continuing to strengthen the
Sweden 181 23% 7
organisation, processes and systems.
Subtotal 1,698 41% 64
Revenue development
Total revenue for 2014 was DKK 2,464m, an increase of 44% compared to Total 2,464 44% 111
2013. The increase was driven by net new store openings in 2014 and the
full-year effect of stores opened in 2013, contributing each with approx-
imately 23 percentage points of revenue growth, whereas there was a
slightly negative comparable store sales growth (1.0)%.
Management launched a number of initiatives to mitigate the negative

comparable store sales growth, including better product availability in
the central warehouses and improved in-store operations. Overall compa-
rable store sales growth improved throughout the year and was positive
in fourth quarter. In certain markets comparable store sales growth was
impacted negatively by cannibalisation as a consequence of the increas-
ing store penetration.
Management Commentary Zebra A/S – Annual Report 2014
10
In 2014, Zebra opened 103 new stores in existing markets. More than
half of the new stores were opened in the Group’s top five markets,
which contributed with approximately 65% of the Group’s total revenue
growth. The top five markets made up approximately two thirds of the
Group’s total 2014 revenue.
The Group continued to expand into new markets in 2014. In May, Zebra
opened its first store in the Czech Republic. It soon proved to be a com-
mercial success and was followed by two additional store openings in
November. In October, Zebra entered the French market, opening a store
in Nice. Zebra also entered new markets in Austria, Estonia and Cyprus.
By the end of 2014, Zebra was present in most of the European countries.
Having only limited store penetration outside Denmark, the potential for
store expansion is considered to be significant.
EBITDA Development in earnings

Earnings before interest, tax, depreciation and amortisation (“EBITDA”)
before special items amounted to DKK 364m compared to DKK 242m in
DKK million 2013. The EBITDA margin before special items increased to 14.8% – a 0.6
percentage point improvement from 2013. The margin increase was driv-
364
en by a higher gross margin of 62.1% compared to 60.5% in 2013. The
gross margin was positively affected by product mix.
Operating costs (staff costs and other external costs) were DKK 1,166m
in 2014 compared to DKK 794m in 2013, representing 47.3% of revenue
in 2014 in 2014 compared to 46.4% in 2013. The absolute increase was primarily
driven by the opening of new stores, full-year impact of stores opened in
2013 and investments in the corporate backbone.
Profit before special items, after tax amounted to DKK 196m compared to
DKK 117m in 2013 corresponding to a 68% increase.
Free cash flow and net interest-bearing debt

NWC increased significantly from DKK 102m in 2013 to DKK 318m in
2014. This was primarily a result of an increase in inventories due to the
opening of new stores but partly offset by higher trade payables.
To improve inventory turnover Management is strengthening process-

es and tools to enhance transparency, forecasting and stock allocation
between warehouses. Furthermore, the organization will be strength-
ened with additional resources and capabilities within supply chain
management. Going forward a new ERP platform will be a key lever
for improving inventory turnover.
Cash flow investing activities increased from DKK 149m to DKK 200m,
primarily driven by investments related to the opening of new stores. The
remaining investments related to existing stores as well as investments in
the corporate backbone.
11
Despite a strong EBITDA contribution from both existing and new stores,
the free cash flow ended at DKK (135)m due to the increase in NWC and
investments. Net interest-bearing debt was DKK 155m end of 2014, com-
pared to DKK 12m in 2013.
Provisions for the acquisition of non-controlling

interest and equity
With the exception of the joint venture in Japan, local partners hold a
non-controlling interest and a put option to sell their non-controlling in-
terest to Zebra, whereas Zebra holds a call option to acquire the partners’
non-controlling interest. Under IFRS, Zebra is considered to control these
partnerships which lead to full consolidation under IFRS. Accordingly, the
subsidiaries are fully consolidated in the consolidated financial statements
and provisions have been made for acquisition of the non-controlling
interests at estimated total amounts owed to the local partners upon
an exercise of the put option or the call option if Zebra has exercised its
call option. The exercise prices are determined by contractually defined Equity
EBITDA multiples.
The calculation of the provisions under IFRS for the put options is based DKKm 2014 2013
on the general assumption that the local partners all exercise their put
Equity before recognition
options at year-end 2014 with the agreed notice period of 12 months. of provisions for acquisi-
It should be noted though that no local partners have currently exercised tion of non-controlling
their put options. For certain of the local partners, which constitute more interests 605 377
than 80% of the total provision, Zebra may under normal circumstances
Provisions for acquisition
limit the number of these partners allowed to exercise their put options of non-controlling
to one every financial calendar year. interests 705 364
Equity according
In 2014, the provisions for acquisition of non-controlling interests,
to IFRS (100) 14
non-current and current in total, increased to DKK 705m in 2014 from
DKK 364m in 2013. The increase was driven by EBITDA expectations in the
jointly owned local operating companies.
Equity under IFRS amounted to DKK (100)m at 31 December 2014, com-

pared to DKK 14m at 31 December 2013 primarily as a result of the DKK
341m increase in the provisions for the acquisition of non-controlling
interests offset by profit for the year of DKK 196m and comprehensive
income relating to hedging instruments of DKK 40m.
Japanese joint venture

Following a successful store opening of an own store in Osaka, the Japa-
nese joint venture was established together with a local partner in June
2013. Unlike the partner model applied in Europe, Zebra and the partner
have joint control of the operating company in Japan, which is why the
Japanese joint venture is not consolidated.
The Japanese joint venture reported strong growth in 2014. Revenue

grew from DKK 47m in 2013 (2013 revenue in Japan for the period before
establishment of the joint venture was DKK 26m) to DKK 211m in 2014
driven by new store openings. In 2014, Zebra opened 11 new stores
taking the total number of stores in the Japanese store network to 13.
12
However, following extraordinary interest during the first store openings,
store traffic is now at a more normalised level. EBITDA for 2014 was DKK
14m, compared to DKK 6m in 2013 (2013 EBITDA in Japan for the period
before establishment of the joint venture was DKK 5m) with correspond-
ing margins of 6.6% and 13.1%, respectively.
NWC increased from DKK 24m in 2013 to DKK 72m in 2014. The increase
was driven by new store openings. Management of the Japanese joint
venture considers the inventory too high and has launched improvement
initiatives to normalise inventory levels.
Proforma consolidated financial information

The Group’s proforma consolidated revenue, which reflects its 50% own-
ership of the Japanese joint venture, was in 2014 DKK 2,563m compared
to DKK 1,735m in 2013. Proforma EBITDA before special items for 2014
was DKK 371m, representing an increase of 51% compared to 2013, and
Proforma corresponding to a margin of 14.5%. The proforma financials are provid-
revenue ed in key figures.
Organisation and Management

In early 2015, Xavier Vidal joined Zebra replacing Christian Mariager as
DKK million the CEO of the Group. Xavier Vidal comes from a position as Managing
Director of EMEA (Europe, Middle East and Africa) of The Body Shop, the
2,563
personal beauty retailer with over 2,500 stores in more than 60 countries.
Xavier Vidal brings broad and international experience from the retail in-
dustry, having held several leadership positions during his five years with
The Body Shop and in previous positions with Sainsbury’s and Tesco.
in 2014 Outlook for 2015
In 2015, Zebra expects to continue the growth trajectory, primarily driven
by store roll-outs in existing geographies and expansion into selected
new geographies, while maintaining a stringent focus on comparable
store sales growth. Overall, revenue and earnings are expected to grow
significantly.
TIGER
KYOTO
ANDREAS SKOVGAARD
Designer of the TEA BIRD
DKK 100
Design awards
15
Strategy
An integral part of the Group’s strategy is to grow market presence and
make the TIGER concept and products available to an increasing number
of consumers, while at the same time continuing to develop and refresh
the concept to ensure the Group’s long-term success.
Business model
Zebra’s business model combines a retail concept with an attractive value
proposition and broad appeal, a partner-based expansion model enabling Dynamic
rapid and sustainable growth and a scalable corporate backbone facilita
assortment
ting operational leverage and solid profits.
Brand and retail concept up to
300
The TIGER brand is all about the retail concept, from the design and
packaging of products to the atmosphere in the stores and how the store
personnel meets the customers. The brand is adventurous and friendly
and represents all that is current and relevant with a conversational and
relaxed tone of voice.
The retail concept is based on three core pillars – assortment, store and
new products
customer experience – and has proven its worth in very different geog- every month
raphies and environments, helping Zebra to win a number of retailer
awards in Europe in 2014.
Assortment
The assortment consists primarily of own-branded products with a Scan-
dinavian flavour and often a humorous twist. Most often the products
are designed by Zebra’s own design department or in close cooperation
with external designers. Zebra’s in-house design and development team
continually optimises the product portfolio, striving to maintain a fresh
product assortment that appeals to consumers by applying retail insight
and monitoring new trends.
While the products are offered at affordable round price points, it is a key
objective that the quality should meet or exceed the customer’s expec-
tations as well as Zebra’s CSR requirements (see CSR section). The price
range of the product offering is typically from 10 to 100 Danish kroner.
The assortment includes categories ranging from home, hobby and party
over toys, electronics and gadgets, to food and accessories and has a
broad appeal across age and income groups. Each month the assortment
is refreshed with up to 300 new products divided in two product cam-
paigns, typically adapted to seasonal themes and/or festive occasions, e.g.
summer, winter, Easter or Christmas, giving the customers a new experi-
ence every time they go into a TIGER store.
16
Store
TIGER stores are located on high streets or in popular shopping malls.
The typical size is between 200 and 300 m2, but there are also a number
of stores between 400 and 600 m2. Across markets, the Scandinavian
decor is a differentiating store characteristic.
The stores are designed to create an inviting and welcoming setting in-
tended to make a visit to a TIGER store a fun and surprising shopping ex-
perience. The products are mainly displayed on pallet tables with discreet
price signs and warm lighting creating stylish but unpretentious product
presentations. The maze floor lay-out ensures that customers are guided
through the store and all main product categories.
Customer experience
The store personnel serves thousands of customers daily. Their dedication
and commitment to the concept is critical for customers’ shopping expe-
rience and their positive perception of the brand. To sustain a positive
customer experience of the TIGER concept, Zebra is critically dependent on
the quality and commitment of the store staff, and is continuously working
to further improve training and professional development for the staff.
Expansion model
Establishing new stores is generally achieved through 50/50 owned
partnerships with a local partner, which significantly increases Zebra’s
organisational capacity for international expansion and reduces the risks
when entering new markets.
A jointly owned local company is set up, and Zebra shares investments,
costs and profits with the local partner. In other words, the cooperation is
PALETTE a business partnership, not a franchise operation. The local partnership is
DKK 20 assigned a certain territory, with the size of the territories ranging from a
city to an entire country.
Zebra owns the concept and brand and supplies the products, while the
local partner is responsible for store roll-outs and day-to-day operations
including staffing, training and local marketing under specific guidelines
set out by Zebra.
Partners are typically individuals or a small group of people with an en-

trepreneur mindset who are appointed after a thorough selection process
that involves evaluating candidates based on their understanding of the
concept, retail experience, local market knowledge and managerial and
financial capacity.
With the exception of the Japanese joint venture, the partnership model
has a contractually defined exit-mechanism, where the local partner holds
exercisable put options that grant them the right to sell their non-con-
trolling shareholding to Zebra with redemption prices at contractually
defined EBITDA multiples. At the same time, Zebra holds call options to
acquire a partner’s shareholding, which are exercisable at contractually
defined EBITDA multiples.
Strategy
17
TIGER
STRATFORD
18
It is part of Zebra’s strategy to take full ownership of the local operating

companies when this is assessed to be more beneficial than the partner
model. Today, Zebra’s operating companies in Denmark, Finland, Iceland
and Scotland are all wholly owned.
Corporate backbone
The rapid growth is supported by a flexible and scalable supply chain
model, continuous investment in new IT infrastructure and continued
strengthening of the organisation and processes.
Financial and operating model

Zebra has established an operating model with a governance structure
anchored with Executive Management for monitoring and reviewing the
local operation’s operational and financial performance aiming to pro-
actively address any potential disruptions in local markets and operating
companies. In addition there has been taken initiatives to strengthen the
process around the supply chain in order to improve working capital and
thereby freeing up capital for further store expansion and partner buy-
outs.
Supply chain model

While the continuous work with product selection, innovation and
product development is carried out by Zebra, production is outsourced
to external suppliers who subscribe to Zebra’s code of conduct and work
under Zebra’s supervision (see CSR section).
A large part of the logistics is outsourced to external operators facilitat-

ing an asset-light and highly scalable logistics operation. Transportation
is provided by external forwarders, and while the warehouse in Brøndby
(DK) is operated by Zebra, the warehouses in Horsens (DK) and Thrapston
(UK) are both operated by an external partner.
ALARM CLOCK
DKK 100 In 2014, Zebra decided to increase warehouse capacity and at the same
time reorganise the warehouse footprint to reduce lead time to the
stores. The warehouse in Horsens (DK) will relocate to Barcelona (ES) and
the warehouses in Brøndby (DK) and Thrapston (UK) will move to larger
facilities. An external partner has been selected to operate the ware-
house in Barcelona and to continue operating the warehouse in the UK.
The new set-up will support the expected growth going forward and is
expected to be fully implemented by the end of 2015.
IT infrastructure
A new, group-wide ERP platform is currently being implemented. The first
stores were converted to the new system late in 2014 and in 2015 Zebra
expects to begin a gradual roll-out to the store network and administra-
tive functions. The new ERP platform will strengthen the Group’s infra-
structure and support the expected growth as well as enable optimisation
of the existing stores and supply chain.
19
People
People are key to the continued success and future expansion of the TI-
GER concept. It is important that Zebra can continue to attract, motivate
and retain highly qualified personnel at all levels of the organisation to
support future growth.
At the head office creative minds are working to refresh the assortment,
improve aspects of the concept, marketing and brand, while administra-
tive staff works to enable the rapid expansion of the concept. In 2014,
Zebra strengthened the creative and administrative teams by adding
additional people and skills. This process will continue in 2015.
Growth levers
Zebra pursues four growth levers to strengthen the Group’s market posi- Net new stores
tion and to increase revenue and profit:
122
• Increase comparable store sales growth
• Increase store penetration in existing markets
• Geographical expansion into new markets
• Increase operating margins from scale advantages
Increasing comparable store sales growth

Zebra designs and sells affordable products and aims to constantly im-
prove the product portfolio to meet consumer demand. The commercial
in 2014
team continuously evaluates the assortment, retiring and introducing
products and designs in order to maintain an attractive, innovative and
fresh product offering. This is done through the development of new
innovative designs and products and by monitoring sales to consumers at
product level.
Each month, Zebra introduces new products adapted to the season and
with a common theme. A significant share of revenue is generated from
this campaign structure, and it is considered an important growth driver.
Zebra also strives to increase customers’ buying frequency and the value
of average basket size by continuously improving merchandising, in-store
execution, marketing and introducing products with higher price points.
Increase store penetration in existing markets

Zebra has applied its partner-driven expansion model to establish new
stores in multiple countries at the same time with commercial success
across all countries so far. With only limited penetration in most markets
outside Denmark, there is a significant potential for store expansion in
existing markets.
Stores are leased to minimise upfront investment and are located on high
streets and in popular shopping malls. An experienced expansion team
assists the local partners in identifying and selecting locations for new
stores as well as assisting in lease negotiations. Zebra has a thorough new
store approval process anchored in the Executive Management to ensure
a continued high quality store portfolio.
20
Geographical expansion into new markets

In addition to a continued store roll-out in existing markets, it is part of
Zebra’s growth strategy to expand into new territories and markets in
order to facilitate future growth as existing markets gradually mature.
As a result of the concept’s commercial success in new markets, Zebra
is experiencing an increasing interest in partnerships from large corpo-
rations and highly qualified entrepreneurs. The potential partners go
through a thorough selection process before they are appointed. Zebra
has developed a market entry model, and when entering new markets,
the company establishes proof of concept by assessing how customers
receive the first shop before making a decision on further expansion.
Increase operating margin from scale advantages

While operating margin is impacted by considerable investments in the
corporate backbone to position the Group for future growth, operating
margin is expected to improve as a result of operational leverage of the
cost structure. The Group furthermore intends to capitalise on opportuni-
ties across the supply chain as the business grows and further economies
of scale are achieved.
BICYCLE BELL
DKK 20
STORAGE SUITCASES
DKK 50, 100 & 150
FLYING TIGER
AMSTERDAM
23
Corporate
social
responsibility
Policy and approach
Acting responsibly is deeply engrained in the values and practices of
Zebra and its employees. Zebra’s philosophy is to sell products that are
safe and produced with the greatest respect for human rights and with
due concern for social and environmental conditions, both in-house and
at the Group’s suppliers. This naturally entails that Zebra strives to control
its impact on society and on the environment.
Activities and results

Based on an assessment of the Group’s existing and potential impact on
environment and society, Zebra’s CSR strategy targets three focus areas:
• Responsible supply chain management
• Product health and safety
• Environmental impact
Responsible supply chain management

Zebra has more than 500 suppliers, the majority of which are located
in Asia, primarily China. Approximately 80% of the purchase volume is
sourced from Asia and the remaining part from Europe. All suppliers must
adhere to and duly sign the “Zebra Supplier Code of Conduct” (available
at www.tiger-stores.com). The code of conduct includes criteria in respect
of human rights and labour rights as well as protection of the environ-
ment and anti-corruption. The code of conduct applies to all Zebra sup-
pliers. Since a close relationship with the suppliers is an important factor
in ensuring supplier compliance with the code of conduct, Zebra aims to
build long-term relationships with core suppliers.
In 2014, the code of conduct and the supplier audit programme were
updated to meet the requirements of the new UN Guiding Principles on
Business and Human Rights.
Collaboration with suppliers and continuous improvements are central to

Zebra’s responsible supply chain management efforts. Thus, Zebra will not
conduct business with suppliers violating the zero tolerance policy includ-
ing criteria dealing with forced labour, child labour, disciplinary practices,
health and safety and protection of the environment.
24
Supplier audits
Zebra does not own the factories that manufacture TIGER products and
hence has no direct control of conditions at the factories. Therefore,
compliance with the code of conduct is monitored through a systematic
supplier audit programme. Suppliers must commit to correct any identi-
fied non-compliance issues, and they are subject to re-audits until they
can demonstrate satisfactory conduct.
In China, Zebra uses auditors who are trained and employed full-time by
Zebra as well as third party independent auditors. In other Asian coun-
tries, for example India, Nepal and Vietnam, where the number of sup-
pliers is limited, audits are carried out solely by independent third party
auditors. In 2014, Zebra conducted a total of 122 audits and re-audits in
Asia.
Apart from serving the important purpose of providing valuable informa-

tion about supplier compliance with the code of conduct, the audit pro-
gramme has a strong impact on working conditions at suppliers. Re-audits
reveal that Zebra’s responsible supply chain management efforts general-
ly lead to suppliers improving their CSR standards.
The audit programme will be scaled-up in 2015 with the employment of

an additional full-time auditor in China. The target for 2015 is to conduct
180 audits.
Product health and safety

Zebra works systematically and proactively to ensure that all products are
in full legal compliance and meet international regulatory standards, are
HEART PUZZLE safe to use and not detrimental to the customer’s health. Zebra strives
to ensure that health and safety issues are taken into consideration right
DKK 100 from product development and in the production process. Obtaining
required documentation from suppliers is an integral part of the Group’s
purchasing procedures.
The size and nature of the product portfolio, including the substantial
number of new products launched each year, poses a challenge to Zebra’s
own control environment, and the Group relies on accredited third party
laboratories for the mechanical and chemical testing of new products.
Product categories such as toys, electronics, cosmetics, food containers
and food are highly regulated by authorities in the countries where the
Group operates, and they are subject to extensive external testing.
In 2014, Zebra focused on building in-house capacity, including strength-

ening quality control, internal know-how and documentation. For 2015,
the goal is to further enhance internal procedures for product health and
safety as well as to expand cooperation with suppliers within this field.
25
Environment
Due to the nature of Zebra’s business, a large part of the environmental
impact of the products lies in the supply chain. Environmental concerns,
e.g. chemical storage, waste handling and emissions to air, water and soil,
are therefore integrated into Zebra’s supplier requirements and hence
also into the supplier audit programme.
Inside the Group’s own facilities, focus is currently on environmental

aspects, which are clearly within the Group’s sphere of control. In 2013,
Zebra introduced a guideline requiring all new or renovated stores to use
LED bulbs and FSC certified wood in store interiors. All new and renovat-
ed stores adhered to this guideline in 2014.
SPICES
DKK 10
SELECTED STORE
OPENINGS 2014
LERUM BOLOGNA
Sweden Italy
KOBE
Japan
BARCELONA VOLOS
Spain Greece
27
Corporate
governance
Corporate Governance practices at Zebra
Zebra strives to apply at all times generally accepted corporate gover-
nance principles as required under the Danish Companies Act, the Danish
Financial Statements Act, IFRS as well as internal rules and procedures
described in the Company’s Rules of Procedure for the Board of Directors
and for the Executive Management, among others. As Zebra is controlled
by a member of the Danish Venture Capital and Private Equity Associa-
tion (“DVCA”), the Company applies the corporate governance guidelines
issued by DVCA. These guidelines are available on www.dvca.dk.
At Zebra, powers are distributed between the Board of Directors and the
Executive Management in accordance with standard practices for Danish
companies and are formalised by the Company’s Rules of Procedure.
The Executive Management handles all day-to-day operations while the
Board of Directors supervises the work of the Executive Management
and approves certain types of decisions and investments. Zebra’s Board of
Directors develops the Group’s overall strategies together with the Execu-
tive Management and oversees that the necessary skills and qualifications
are in place to support the Group’s development and strategic business
objectives.
Other key tasks for the Board of Directors are to ensure that Zebra has
the right management capabilities and adequate organisational structure
in place, and that the Company works towards implementing efficient
and transparent business procedures and responsible asset management.
The Board of Directors also oversees the financial development of Zebra
and related reporting and planning systems.
The content of the Board meetings is determined by the Board’s meeting

schedule, which is updated and approved by the Board of Directors at the
beginning of each financial year, and by on-going discussions between
the Board of Directors and the Executive Management.
Board activities in 2014

The Board of Directors has seven members and held six board meetings
in 2014. Each meeting lasted at least a day, ensuring enough time for dis-
cussing performance, critical and strategic issues, follow-up on corporate
28
strategy, action plans and organisation, and review of internal controls
and procedures. The Board holds at least one meeting every year in one
of the Group’s strategically important markets and such meetings include
store visits, meetings with local partners and updates on the local retail
market.
Internal control system

The responsibility for maintaining an adequate and efficient internal
control environment in connection with financial reporting lies with the
Executive Management. The Board of Directors has reviewed and assessed
the Group’s control environment and concluded that it is adequate at the
current stage of the Group’s development. Zebra will during 2015 con-
tinue to strengthen its control environment and processes both in local
operating companies and at head office.
Ownership and capital structure

EQT holds approximately 67% of the shares in Zebra A/S through Zebra
Lux Holding S.a.r.l. Approximately 29% of the shares are held by Mitco
ApS, which is controlled by Lennart Lajboschitz, and approximately 4%
of the shares are held by the members of the Board of Directors, the
Executive Management and a small number of senior Zebra employees.
Diversity
Zebra aims to offer equal opportunities to men and women across its
NOTE BOOKS organisation, and it is company policy to promote equal opportunities re-
gardless of gender, ethnicity, race, religion and sexual orientation. When
DKK 10 & 20 it comes to gender, Zebra aims at a balanced distribution among employ-
ees in leadership positions. Zebra’s Management is currently composed of
62% male and 38% female members. Relevant professional qualifications
remain the key selection criteria for all positions in the Zebra organisa-
tion, but Zebra’s Management will continue to focus on diversity and will
continue to evaluate the need for initiatives within this area.
The Board of Directors of Zebra is composed of 100% male members. It

is the board’s ambition to increase diversity, including with regards to
gender representation on the board where the target is to have at least
one female member within three years. This will be done in relation with
ongoing changes to the composition of the board, where special efforts
will be made to ensure that female candidates are identified and partici-
pate in the selection process. As the majority of the current Directors have
low tenure on the board and in consideration of a desired continuity in
the Board of Directors, this target will be sought achieved in relation to
ongoing changes to the composition of the Board.
SUNGLASSES
DKK 30
FLYING TIGER
UTRECHT
31
Risk
management
The Board of Directors and Executive Management are responsible for
ensuring that the structure and control systems in the Group are suitable
and function satisfactorily. The Board of Directors regularly assesses the
overall and specific risks associated with the business and operation, and
seeks to ensure that such risks are managed in a proactive and efficient
manner. The Executive Management is working actively with risk man-
agement, including ongoing discussions and assessments of actual and
potential risks, and through integration of risk mitigation in the Group’s
ongoing activities and actions.
Financial risk
The nature of Zebra’s operations, investments and financing arrange-
ments exposes the Group to market risk by way of changes in foreign
exchange rates and interest rate levels. The Group’s treasury policy is to
actively address financial risk in order to mitigate the risk of material
impacts on the Group’s financial position.
Currency risk
Zebra’s international activities imply that the Group’s financial results,
cash flows and equity are exposed to fluctuations in various foreign
currencies.
The main exchange rate exposure faced by Zebra relates to the purchase
of goods in foreign currency, mainly USD, and translation of the financial
results and equity of the foreign subsidiaries into Danish kroner. It is the
Group’s policy at least on a half-year basis to hedge foreign exchange risk
for 80% of expected procurement 12 months ahead.
The exposure to exchange rate fluctuations of Zebra’s foreign subsidiaries

is to some extent mitigated by the fact that both revenue and adminis-
trative costs of the individual subsidiaries are denominated in the same
currencies.
For more information, see note 4.3 to the consolidated financial state-
ments.
32
Interest rate risk
Zebra is exposed to interest rate risk because entities of the Group
borrow funds at variable rates of interest. The risk is monitored by Zebra
and hedging is applied in order to maintain intended mix between fixed
and floating rate borrowings in accordance with the guidelines of the
management.
Credit risk
The Group has limited credit risk exposure, because its sales to customers
are mainly for cash, and the Group is not exposed to any major credit
risks from any single customer or other party.
Operational risk
Zebra has identified key operational risks within the areas of:
PILLOW • Market place
DKK 40 • Reputation
• Infrastructure and people
Market place
Competition
As a retailer, Zebra is exposed to competition from other retailers with
a value proposition similar to Zebra’s as well as competition from online
formats.
To mitigate competition from other retailers, Zebra continues to invest

and develop the TIGER concept to sustain the concept’s edge and attrac-
tive value proposition. The initiatives include continued strengthening of
the Group’s creative capabilities within product design and innovation,
visual merchandising, marketing and branding as well as training of the
store staff in order to sustain or improve the level of service provided in
the stores.
Expansion
Zebra’s growth ambitions require strong performance, both in existing
markets and when launching the TIGER concept in new markets. Failure
to adequately address performance issues in local markets may impact the
Group’s financial results. Zebra continuously works on improving its moni
toring, business review and data analysis procedures, aiming to proactive-
ly address any potential disruptions in local markets and the corporate
organisation has been strengthened to address in a timely manner any
performance issues that may arise.
Reputation
The main reputational risks Zebra faces stem from the fact that Zebra
does not own the facilities in which the Group’s products are manufac-
tured. If suppliers fail to comply with Zebra’s code of conduct, the Group’s
33
reputation and brand may be jeopardised. Suppliers must adhere to the
code of conduct and compliance is monitored through a systematic sup-
plier audit programme. See the corporate social responsibility section for
further information about Zebra’s CSR efforts and results achieved.
Infrastructure and people

Implementation of ERP system and restructuring of warehouse
setup
Supply chain disruptions may have a negative impact on Zebra’s financial
results. Such disruptions may potentially occur as a consequence of the
current implementation of the new ERP system and warehouse changes
being made.
To mitigate such potentially negative impact from supply chain disrup-

tions, Zebra closely monitors the entire supply chain on an ongoing basis
and continues to invest and build supply chain capabilities.
With regards to the implementation of the new logistics arrangements

and ERP platform, Zebra has strengthened its project organisations and
project management capabilities. In addition, Zebra has implemented
governance structures anchored with the Executive Management ensur-
ing that the departments allocate sufficient attention and resources to
the projects.
Key people
In order to maintain the growth trajectory, Zebra relies critically on its
ability to continue to attract, motivate and retain highly qualified per-
sonnel at all levels of the organisation – from store staff and managers to
creative and administrative people at head office.
In 2014, Zebra established a group HR function for the purpose of sup-

porting the local operating companies. Among other initiatives, Zebra
has developed and partly rolled-out a recruitment kit designed to assist in
local recruitment of qualified talents for positions as store assistants, as-
sistant store managers and store managers as well as a talent programme
for store managers to ensure a pool of talent for future expansion.
An integral part of Zebra’s strategy is to take full ownership of local

operating companies when this is assessed to be more beneficial than
the partner model. The transformation process carries the risk of losing
traction due to loss of key managers with in-depth local market know
ledge. To ensure a continued strong financial performance in and after
a transformation period, the partner model entails a put or a call notice
of one year allowing Zebra to develop a detailed transfer plan together
with the partner, ensure timely identification of new management and
LAMP
deploy various measures to ensure retention of local key personnel. DKK 100
34
Board of
Directors
Ole Andersen (1956) Michael Hauge Sørensen (1973)
Chairman, Member since 2013 Member since 2013
Educational M.Sc. Business Administration and

Educational Executive training from Stanford, IMD,
background Auditing, Copenhagen Business School.
background INSEAD
State Authorized Public Accountant
Current Position Professional Board Member
Current Position Professional Board Member
Other Positions Pandora A/S (Board Member)
Other Positions Danske Bank A/S (Chairman)
IC Group A/S (Board Member)
Bang & Olufsen A/S (Chairman)
Santa Fe Group A/S (Board Member)
Chr. Hansen Holding A/S (Chairman)
Kwintet AB (Chairman)
EQT (Industrial Advisor)
Michaso Holdings Ltd. (Director)
NASDAQ OMX Nordic (Member of the
EQT (Industrial Advisor)
Nomination Committee)
The Danish Committee on Corporate
Governance (Member)
Manel Adell Domingo (1961) Rolf Eriksen (1944)

Member since 2013 Member since 2013
Educational MBA, IMD Lausanne Educational Decorator

background M.Sc., ESADE Business School Barcelona background
Current Position Professional Board Member Current Professional Board Member

Position
Other Positions PUIG, S.L. (Board Member)
Privalia Venta Directa, S.A. (Board Other Positions Hennes & Mauritz A/S (Board Member)
Member)
35
Morten Hummelmose (1971) Lennart Lajboschitz (1959)

Member since 2013 Member since 1998
Educational M.Sc. Economics, University of Current Advisor and Founder, Zebra A/S
background Copenhagen Position
M.Sc. Finance, University of London
Other Positions Hos Fischer ApS (Board Member)
Current Head of EQT Partners in Denmark Mitco ApS (Chairman)
Position J.H.L. ApS (Board Member)
Lajbo Holding ApS (Board Member)
Other Positions Færch Plast A/S (Board Member)
Jacob Bier (1961)

Member since 1998
Educational LLM, University of Copenhagen

background

Current Senior Advisor, Greenhill & Co.
Position International LLP

Other Positions Cruise I A/S (Chairman)
Hos Fischer ApS (Board Member)
Mitco ApS (Board Member)
Zebra A/S – Annual Report 2014
TIGER
MADRID
37
Executive
Management
Xavier Vidal (1974) Henrik Skov (1964)
Chief Executive Officer Chief Financial Officer
Educational Advanced Management Program Educational M.Sc. Economics, Clemson University

background (AMP), Harvard Business School background
M.Sc. Marketing, Cranfield University
Previous Telenor A/S (Chief Financial Officer and
Previous The Body Shop (Managing Director experience other leadership positions)
experience EMEA and other leadership positions) Accenture (Manager)
Sainsbury’s (Business Unit Director)
Tesco Plc (Category Manager)
Auchan (Buyer)
Tahir Hussain (1971)

International Director
Educational MBA (Strategy, Finance, HR &

background Innovation), The Open University
Diploma in Management (Improving
Projects, Change & Performance), The
Open University
Certificate in Management (Managing,
Finance, Customers & Quality) The
Open University
Previous Dalberg (Head of Finance, Europe)

experience Ditsch Ltd (Managing Director)
Tate Gallery (Director of Finance &
Operations)
Yates Group Plc (Director of
Operations)
RAIN PONCHO
DKK 30
Zebra A/S – Annual Report 2014 Consolidated Financial Statements
39
Consolidated
financial
statements
40 Income statement
42 Balance sheet
44 Statement of changes in equity
45 Cash flow statement

Basis of preparation Section 1
46 General accounting policies Note 1.1
48 Critical accounting estimates and judgments Note 1.2

Results for the year Section 2
49 Staff costs Note 2.1
50 Special items Note 2.2
50 Financial expenses Note 2.3
51 Income taxes and deferred tax Note 2.4

Operating assets and liabilities Section 3
53 Intangible assets Note 3.1
55 Property, plant and equipment Note 3.2
57 Investments in joint ventures Note 3.3
58 Inventories Note 3.4
58 Working capital changes Note 3.5
59 Guarantee commitments and contingent liabilities Note 3.6

Capital structure and financing Section 4
60 Share capital Note 4.1
61 Financial assets and liabilities Note 4.2
63 Financial instruments Note 4.3
65 Provisions for the acquisition of non-controlling interests Note 4.4

Other disclosures Section 5
66 Audit fee Note 5.1
66 Related parties Note 5.2
66 Events after the balance sheet date Note 5.3
67 List of group companies Note 5.4

Consolidated Financial Statements Zebra A/S – Annual Report 2014
40
Income statement
1 January - 31 December
DKKm Note 2014 2013
Revenue 2,464.2 1,710.9

Cost of sales (934.3) (675.1)
Gross profit 1,529.9 1,035.8
Other external expenses (531.7) (373.4)

Staff costs 2.1 (634.0) (420.1)
EBITDA before special items 364.2 242.3
Amortisation and depreciation (77.7) (48.0)
Operating profit (EBIT) before special items 286.5 194.3
Special items 2.2 - 29.6
Operating profit (EBIT) 286.5 223.9
Share of profit in joint ventures 3.3 5.0 0.5

Financial income 1.8 1.2
Financial expenses 2.3 (34.0) (37.9)
Profit before tax 259.3 187.7
Tax on profit for the year 2.4 (63.6) (40.0)
Profit for the year 195.7 147.7

41
Statement of other comprehensive income for the group
DKKm Note 2014 2013
Profit for the year (brought forward) 195.7 147.7
Items that may be reclassified subsequently to profit or loss:

Foreign currency translation adjustment, foreign entities – exchange differences
arising during the year 3.2 (0.3)
Value adjustment of hedging instruments for the year 52.4 (12.5)
Tax relating to items that may be reclassified subsequently (12.5) 3.0
Other comprehensive income 43.1 (9.8)
Total comprehensive income for the year 238.8 137.9

42
Balance sheet
31 December
Assets
DKKm Note 2014 2013
Intangible assets 3.1 57.3 35.9

Property, plant and equipment 3.2 296.2 209.5
Investment in joint ventures 3.3 45.5 40.7
Leasehold deposits 32.6 19.6
Deferred tax 2.4 15.9 6.1
Non-current assets 447.5 311.8
Inventories 3.4 719.1 368.7

Income tax receivables 10.3 4.5
Other receivables 67.2 21.8
Prepayments 49.4 24.9
Cash and cash equivalents 4.2 262.4 198.0
Current assets 1,108.4 617.9
Assets 1,555.9 929.7

43
Balance sheet
31 December
Equity and liabilities

DKKm Note 2014 2013
Share capital 4.1 0.5 0.5

Reserves 33.6 (9.5)
Retained earnings (133.6) 22.5
Equity (99.5) 13.5
Bank debt 4.2 150.0 5.8

Provisions for the acquisition of non-controlling interests 4.4 638.5 363.5
Deferred tax 2.4 17.8 1.0
Non-current liabilities 806.3 370.3
Bank debt 4.2 239.2 187.9

Provisions for the acquisition of non-controlling interests 4.4 66.3 -
Loans provided by shareholders of non-controlling interests 28.4 16.5
Trade payables 232.7 127.2
Income tax payable 50.1 28.9
Other payables 232.4 185.4
Current liabilities 849.1 545.9
Liabilities 1,655.4 916.2
Equity and liabilities 1,555.9 929.7

44
Statement of changes in equity
Share Retained
DKKm capital Reserves earnings Total
2014
Equity at 01.01. 0.5 (9.5) 22.5 13.5
Profit for the year - - 195.7 195.7
Other comprehensive income for the year, net of tax - 43.1 - 43.1
Transactions with owners:
Dividend paid - - (11.0) (11.0)
Change in non-controlling interests' ownership share - - 0.7 0.7
New provisions for the acquisition of non-controlling interests - - (7.1) (7.1)
Adjustment to provisions for the acquisition of non-controlling
interests - - (334.9) (334.9)
Contribution from non-controlling interests - - 0.5 0.5
Equity at 31.12. 0.5 33.6 (133.6) (99.5)
2013
Equity at 01.01. 0.5 0.3 (2.6) (1.8)
Other comprehensive income for the year, net of tax - (9.8) - (9.8)
Dividend paid - - (4.6) (4.6)
Change in non-controlling interests' ownership share - - (10.0) (10.0)
New provisions for the acquisition of non-controlling interests - - (33.4) (33.4)
Adjustment to provisions for the acquisition of non-controlling
interests - - (102.9) (102.9)
Share capital increase 0.0 - 28.3 28.3
Equity at 31.12. 0.5 (9.5) 22.5 13.5

45
Cash flow statement
DKKm Note 2014 2013

Gain related to the partial sale of the Japanese business - (39.8)
Depreciation, amortisation and losses from disposal of assets 77.7 47.9
Working capital changes 3.5 (215.4) (5.4)
Interest income received 1.8 1.2
Interest expenses paid (31.9) (37.9)
Taxes paid (53.7) (50.6)
Cash flow from operating activities 65.0 139.3
Change in non-controlling interests' ownership share - (7.1)

Investment in intangible assets (27.1) (7.5)
Investment in property, plant and equipment (159.7) (130.0)
Investment in other non-current assets (13.0) (4.0)
Cash flow from investing activities (199.8) (148.6)
Free cash flow (134.8) (9.3)
Contribution from non-controlling interests 0.5 -

Share capital increase - 28.3
Change in loans provided by shareholders of non-controlling interests 11.9 10.6
Proceeds from borrowings 195.5 68.5
Dividend paid (11.0) (4.6)
Cash flows from financing activities 196.9 102.8
Increase in cash and cash equivalents 62.1 93.5
Cash and cash equivalents at 1 January 198.0 104.5

Unrealised exchange gains/(losses) included in cash and cash equivalents 2.3 0.0
Cash and cash equivalents at 31 December 262.4 198.0

46
1.1 General accounting policies
The Consolidated Financial Statements for the Group control by virtue of other contractual agreements with
have been prepared in accordance with International the entities, and these entities are thus fully consolidated
Financial Reporting Standards (IFRS) as adopted by the EU in the consolidated financial statement.
and Danish disclosure requirements applying to entities
of reporting class C (large). When the Group loses control of a subsidiary, a gain or
loss is recognised in profit or loss and is calculated as the
The consolidated financial statements are presented in difference between (i) the aggregate of the fair value
Danish kroner (DKK), which also is the functional currency of the consideration received and the fair value of any
of the parent company. retained interest and (ii) the previous carrying amount
of the assets (including goodwill), and liabilities of the
The accounting policies are unchanged from last year. subsidiary and any non-controlling interests.
Presentation of accounting policies All amounts previously recognised in other comprehen-

Where possible the accounting policies for an accounting sive income in relation to that subsidiary are accounted
area are presented in the individual notes for that area. for as if the Group had directly disposed of the related
Accounting policies not directly related to an area cov- assets or liabilities of the subsidiary. The fair value of any
ered by a note are presented below. investment retained in the former subsidiary at the date
when control is lost is regarded as the fair value on initial
Defining materiality recognition.
In the preparation of these consolidated financial state-
ments, an evaluation of what information is considered Translation of foreign currencies
relevant and useful has been performed by the Executive Foreign currency transactions are translated into the func-
Management. With the aim of providing consolidated tional currency defined for each company using the ex-
financial statements which enable users to more clear- change rates prevailing at the transaction date. Monetary
ly focus on issues which are considered important for items denominated in foreign currencies are translated
decision-making purposes, certain measures have been into the functional currency at the exchange rates prevail-
undertaken to remove immaterial clutter, including: ing at the balance sheet date.
• Aggregating immaterial line items on the primary
statements (income statement, balance sheet and cash Receivables, payables and other monetary items denom-
flow statement) inated in foreign currencies that have not been settled
• Moving disaggregated items from the primary state- at the balance sheet date are translated at the exchange
ments to the notes rates at the balance sheet date. The differences between
• Including disclosure requirements of accounting the exchange rates at the balance sheet date and the rates
standards only to the extent they are material to the at the time the receivable or payable is created or rec-
Group. ognised in the latest consolidated financial statements are
recognised in the income statement under net financials.
Consolidation
The Consolidated Financial Statements comprise the Financial statements of foreign subsidiaries are translated
financial statements of the parent company Zebra A/S into the functional currency at the exchange rates prevail-
and entities controlled by the parent company. ing at the balance sheet date for assets and liabilities, and
at average exchange rates for income statement items.
Financial statement items of controlled entities are rec- Exchange differences arising from the translation of both
ognised in full in the Consolidated Financial Statements. the balance sheets and the income statements of the
Non-controlling interests´ pro rata shares of the profit/ foreign subsidiaries are recognised under other compre-
loss and the net assets are disclosed as separate items in hensive income.
the income statement and the balance sheet, respective-
ly, except those non-controlling interests that are fully Exchange adjustments of outstanding accounts with in-
consolidated as a result of the put options in place, ref. dependent foreign subsidiaries which are considered part
note 4.4. of the total investment in the subsidiary in question are
classified directly as equity.
Although the parent company does not own a majority of
the voting rights in certain subsidiaries, ref. note 5.4, the Unrealised gains/losses relating to hedging of future cash
Executive Management has assessed that the Group has flow are recognised in other comprehensive income.
47
1.1 General accounting policies (continued)
Revenue IFRS 9 Financial Instruments

Revenue is measured at the fair value of the consideration In July 2014, the IASB issued the final version of IFRS 9
received or receivable. Revenue is reduced for estimated Financial Instruments, which reflects all phases of the
customer returns, rebates and other similar allowances. financial instruments project and replaces IAS 39 Financial
Instruments: Recognition and Measurement, and all previ-
Revenue from the sale of goods is recognised when the ous versions of IFRS 9.
goods are delivered and titles have passed.
IFRS 9 is currently awaiting EU endorsement. The stan-
Standards issued but not yet effective dards introduces new requirements for classification and
The standards and interpretations which have been is- measurement, impairment and hedge accounting. IFRS
sued, but are not yet effective, up to the date of issuance 9 is effective for annual periods beginning on or after 1
of the Group’s financial statements, and which are consid- January 2018, with early application permitted.
ered to have an effect on the Group are disclosed below.
The Group is currently assessing the impact of IFRS 9,
New standards and amendments which are not yet effec- and plans to adopt the new standard on the required
tive and which are not considered to have an impact on effective date.
the Group are not disclosed. The Group intends to adopt
these standards, if applicable, when they become effective.
Key figures and ratios

The figures and ratios have been compiled based on the following definitions and formulas:
Gross profit x 100

Gross margin =
Revenue
EBITDA margin EBITDA margin before special items

before special items = Revenue
Bank debt + Loans provided by shareholders of non-controlling

Net interest-bearing debt =
interests – cash and cash equivalents
Net working capital

Net working capital % =
Revenue
Net interest-bearing debt

Leverage =
EBITDA before special items
Profit before special items, after tax = Profit for the year adjusted for special items and tax on special items
Profit before special items, after tax

Profit margin before special items, after tax =
Revenue
Comparable store sales growth • Comparable store sales exclude the following:
• C
omparable store sales include the following: If a store is closed for refurbishment, it is excluded
Stores open for at least 13 full months at the reporting in the months where the store is closed plus on full
date. calendar month following reopening.
Stores that have been expanded but not changes If a store is relocated within the same trade area and the
significantly in size. old store remains temporarily open, the old store will be
Stores that are relocated but remain within the same excluded from the month where the new store opens.
trade area, and not changed significantly in size. • Comparable store sales growth excludes foreign
currency translation effects.
48
1.2 Critical accounting estimates and judgments
The consolidated financial statements of Zebra A/S have Critical accounting estimates and judgments
been prepared to give a true and fair view of the Group’s The Executive Management regards the following as the
assets, liabilities and financial position at 31 December key accounting estimates and assumptions used in the
2014. The Executive Management makes various account- preparation of the Consolidated Financial Statements:
ing estimates and judgments which affect the consolidat-
ed financial statements. The most significant accounting • Consolidation of entities in which the Group holds a
estimates and judgments are presented below. 50% ownership interest, cf. below
• Goodwill (note 3.1 and note 3.3)
The judgments, estimates and assumptions made are • Provisions for the acquisition of non-controlling
based on historical experience and other factors that interests (note 4.4)
the Executive Management considers to be reliable, but
which by their very nature are associated with uncer- Apart from these, a number of other key accounting esti-
tainty and unpredictability. These assumptions may mates and assumptions have been applied. Please refer to
prove incomplete or incorrect, and unexpected events the notes for further information.
or circumstances may arise. The most critical judgments,
estimates and assumptions for the individual items are Consolidation of entities in which the Group
described below. holds a 50% ownership interest
The Group considers that it controls a number of entities
The Group is subject to risks and uncertainties that may (refer to note 5.4 List of Group companies) even though
lead to actual results differing from these estimates, both it does not hold the majority of the voting rights in the
positively and negatively. entities. The assessment of whether the Group controls
an entity is based on an evaluation of whether the Group
Assumptions about the future and estimation of uncer- has the current ability to direct the relevant activities of
tainty on the balance sheet date are described in the the entity. The Group holds call options to acquire all
notes where there is a significant risk of changes that remaining outstanding shares, including the voting rights
could result in material adjustments to the carrying related to these shares. The majority of the call options
amounts of assets or liabilities within the next financial are currently exercisable. Zebra A/S has also entered
year. into shareholders agreements with the other investors
(partners) and supply agreement etc. that give Zebra A/S
substantial rights, including in connections with a dead
lock situation. Accordingly, the Group considers at a bal-
anced view that these potential voting rights and other
rights in all substance give rise to the existence of control
at the reporting date.
49
2.1 Staff costs
DKKm 2014 2013
Salaries and wages 532.9 367.3

Pension contributions 23.0 21.6
Other social security costs 57.3 23.0
Other staff costs 20.8 8.2
Total 634.0 420.1
Remuneration for the Executive Management and the Board of Directors

Total remuneration, Executive Management 12.9 10.7
Total remuneration, Board of Directors 1.2 1.0
Total 14.1 11.7

Pension expenses 0.3 0.9
Total 14.1 11.7
Average number of employees 3,001 1,939

50
2.2 Special items
Accounting policies adjustment, as well as gains or losses arising in this con-

Special items include significant income and expenses of nection, and which are significant over time.
a special non-recurring nature in terms of the Group’s
revenue-generating operating activities which cannot These items are classified separately in the income state-
be attributed directly to the Group’s ordinary operating ment, in order to provide a more accurate and transpar-
activities. Such income and expenses relate to significant ent view of the Group’s recurring operating profit.
restructuring of processes and fundamental structural
DKKm 2014 2013
Gain related to the partial sale of the Japanese business - 35.8

Costs associated with the establishment of new management team - (4.1)
Costs associated with the restructuring of the Finnish business - (2.1)
Total - 29.6
2.3 Financial expenses
Accounting policies
Financial expenses comprise interest payable, realised t ransactions in foreign currencies as well as tax surcharge
and unrealised capital losses on securities, payables and and tax relief under the Danish Tax Payment Scheme.
DKKm 2014 2013
Bank charges 11.2 20.4

Interests 20.7 12.0
Exchange rate adjustments 2.1 5.5
Total 34.0 37.9

51
2.4 Income taxes and deferred tax
Accounting policies Deferred tax is measured on the basis of the tax rules
Corporate income tax for the year, which consists of the and the tax rate in force in the respective countries on
year’s current tax and the change in deferred tax, is rec- the balance sheet date. Changes in deferred tax due to
ognised in the income statement as regards the amount tax rate changes are recognised in the income statement,
that can be attributed to the net profit or loss for the except to the extent that they relate to items recognised
year and under other comprehensive income as regards either in other comprehensive income or directly in Share-
the amount that can be attributed to items under other holders’ equity.
comprehensive income.
Accounting estimates and judgments
Deferred tax is recognised on temporary differences be- The Group recognises deferred tax assets including the
tween the carrying amount of assets and liabilities in the expected tax value of tax loss carryforwards, if the Exec-
consolidated financial statements and the corresponding utive Management assesses that these tax assets can be
tax bases used in the computation of taxable profit. No offset against positive taxable income in the foreseeable
deferred tax is recognised for goodwill, unless amortisa- future and liabilities. The Executive Management assesses
tion of goodwill for tax purposes is allowed. tax assets and liabilities at least annually based on dia-
logue with tax advisors, business plans for the coming
years, including other planned commercial initiatives.
DKKm 2014 2013
Current tax 68.4 39.9

Adjustment to current tax concerning previous years 0.7 0.1
Change in deferred tax (1.4) 0.5
Adjustment to deferred tax concerning previous years (4.1) (0.5)
Total 63.6 40.0
Reconcilation of tax rates:

Percentage 2014 2013
Danish income tax rate 24.5 25.0

Difference in tax rates of non-Danish entities from Danish income tax rates 1.4 (1.1)
Effect from partial sale of the Japanese business - (4.7)
Effect from adjustment to current tax concerning previous years 0.2 0.1
Effect from adjustment to deferred tax concerning previous years (1.6) 2.0
Average effective tax rate 24.5 21.3

52
2.4 Income taxes and deferred tax (continued)
Deferred tax
DKKm 2014 2013
Deferred tax assets 15.9 6.1

Deferred tax liabilities (17.8) (1.0)
Total (1.9) 5.1
Realised
in other
Deferred Realised in compre- Deferred
tax profit hensive tax
DKKm 01.01 and loss income 31.12
2014
Intangible assets (2.3) (3.4) - (5.7)
Property, plant and equipment (3.7) (2.1) - (5.8)
Inventories 1.8 7.8 - 9.6
Provisions etc. 6.1 (0.2) - 5.9
Cash flow hedging 3.0 - (12.5) (9.5)
Tax losses to be carried forward 2.2 0.7 - 2.9
Other (2.0) 2.7 - 0.7
Temporary differences 5.1 5.5 (12.5) (1.9)
Realised
in other
Deferred Realised in compre- Deferred
tax profit hensive tax
DKKm 01.01 and loss income 31.12
2013
Intangible assets (1.9) (0.4) - (2.3)
Property, plant and equipment (2.7) (1.0) - (3.7)
Inventories 4.1 (2.3) - 1.8
Provisions etc. 2.6 3.5 - 6.1
Cash flow hedging - - 3.0 3.0
Tax losses to be carried forward 0.3 1.9 - 2.2
Other (0.3) (1.7) - (2.0)
Temporary differences 2.1 0.0 3.0 5.1

53
3.1 Intangible assets
Accounting policies Critical accounting estimates and judgments

Goodwill Goodwill
Goodwill represents the excess of the cost of an acquisi- Goodwill relates primarily to acquisition of a number of
tion over the fair value of the identifiable net assets of Danish stores in 2006 to 2011.
the acquired business.
Goodwill is tested annually for impairment. The recover-
Other intangible assets able amount is calculated as the present value of future
Leasehold rights are measured at cost less accumulated net cash flows (value in use) from the activity to which
amortisation and impairment losses. the goodwill is allocated.
Development and implementation of software and IT The estimate of the future free net cash flows is based
systems are capitalised and amortised over their expected on budgets and business plans for 2015 and on projec-
useful lives. tions for 2016. Key parameters are revenue develop-
ment, profit margins, proposed capital expenditure and
Trademarks are recognised at cost and amortised over growth expectations for the following years. Key factors
their expected useful lives. that could trigger an impairment test include a macro
economy down-scaling and changes to the competitive
Amortisation is carried out systematically over the expect- environment.
ed useful lives of the assets:
The discount rate used to calculate recoverable amounts
• Leasehold rights 20 years is the weighted average cost of capital before tax.
• Trademarks 5-20 years
• Licenses and software 5 years Development projects in progress
For development projects in progress, the Executive Man-
Intangible assets in progress are measured at cost less agement estimates on an ongoing basis whether each
impairment losses. project is likely to generate future economic benefits
for the Group in order to qualify for recognition. The
development projects are evaluated on technical as well
as commercial criteria.
54
3.1 Intangible assets (continued)
Intangible
Leasehold Licenses and assets in
DKKm Goodwill rights Trademarks software progress Total
2014
Cost 01.01. 12.5 33.8 - - - 46.3
Exchange rate adjustment - (0.7) - - - (0.7)
Additions - 9.4 1.1 6.9 9.7 27.1
Transfer - - - 8.5 (8.5) -
Disposals - (0.5) - - - (0.5)
Cost 31.12. 12.5 42.0 1.1 15.4 1.2 72.2
Amortisation 01.01. - (10.4) - - - (10.4)

Exchange rate adjustment - 0.3 - - - 0.3
Amortisation - (4.2) - (0.8) - (5.0)
Disposals - 0.2 - - - 0.2
Amortisation 31.12. - (14.1) - (0.8) - (14.9)
Carrying amount 31.12. 12.5 27.9 1.1 14.6 1.2 57.3
2013
Cost 01.01. 12.5 27.3 - - - 39.8
Exchange rate adjustment - (0.7) - - - (0.7)
Additions - 9.6 - - - 9.6
Disposals - (2.4) - - - (2.4)
Cost 31.12. 12.5 33.8 - - - 46.3
Amortisation 01.01. - (8.1) - - - (8.1)

Exchange rate adjustment - - - - - -
Amortisation - (3.4) - - - (3.4)
Disposals - 1.1 - - - 1.1
Amortisation 31.12. - (10.4) - - - (10.4)
Carrying amount 31.12. 12.5 23.4 - - - 35.9
No impairment losses on intangible assets have been recognised in 2014 (2013: No impairment losses recognised).
55
3.2 Property, plant and equipment
Accounting policies Accounting estimates and judgments

Property, plant and equipment is measured at cost less If there is any indication that an asset may be impaired,
accumulated depreciation and impairment losses. the value in use of the asset is estimated and compared
with the current value. The value in use calculation is
Cost comprises the acquisition price, costs directly at- based on the discounted cash flow method using esti-
tributable to the acquisition, and preparation costs of mates of future cash flows from the continuing use of the
the asset until the time when it is ready to be put into asset. The key parameters are expected utilisation of the
operation. asset, expected growth in sales of products produced by
the asset, expected growth in cash flow in the terminal
The basis of depreciation is cost less estimated residual period etc. All these parameters are based on estimates
value after the end of useful life. Straight-line depreci- of the future and may give rise to changes in future
ation is made on the basis of the following estimated accounting periods.
useful lives of the assets:
• Leasehold improvements 6 years

• Store furniture 4 years
• Other fixtures and equipment 3-4 years
Profits and losses from the sale of property, plant and

equipment are calculated as the difference between
selling price minus selling costs and carrying amount at
the time of sale.
56
3.2 Property, plant and equipment (continued)
Leasehold Store Other

DKKm improvements furniture equipment Total
2014
Cost 01.01. 123.1 134.5 52.6 310.2
Exchange rate adjustment 1.4 (1.9) 0.8 0.3
Additions 71.2 65.4 23.1 159.7
Disposals (5.1) (5.1) (2.2) (12.4)
Cost 31.12. 190.6 192.9 74.3 457.8
Depreciation 01.01. (36.7) (38.9) (25.1) (100.7)

Exchange rate adjustment (0.2) 0.3 0.4 0.5
Depreciation (23.4) (35.6) (12.6) (71.6)
Disposals 4.1 4.0 2.1 10.2
Depreciation 31.12. (56.2) (70.2) (35.2) (161.6)
Carrying amount 31.12. 134.4 122.7 39.1 296.2
2013
Cost 01.01. 78.4 76.3 34.0 188.7
Exchange rate adjustment 0.2 (1.8) (2.0) (3.6)
Additions 49.1 61.9 21.3 132.3
Disposals (4.6) (1.9) (0.7) (7.2)
Cost 31.12. 123.1 134.5 52.6 310.2
Depreciation 01.01. (25.8) (21.3) (17.5) (64.6)

Exchange rate adjustment - 0.3 0.2 0.5
Depreciation (14.1) (19.1) (8.1) (41.3)
Disposals 3.2 1.2 0.3 4.7
Depreciation 31.12. (36.7) (38.9) (25.1) (100.7)
Carrying amount 31.12. 86.4 95.6 27.5 209.5
Gains and (losses) on property, plant and equipment amounts to DKK 1.1m (2013: DKK 3.2m).
57
3.3 Investments in joint ventures
Accounting policies Critical accounting estimates and judgments

Investments in joint ventures are accounted for using the The carrying amount of the investment (including good-
equity method of accounting. Under the equity method, will) is tested for impairment on an annually basis. Any
the investment in joint ventures is initially recognised at impairment loss recognised forms part of the carrying
cost, and the carrying amount is increased or decreased amount of the investment. The estimate of the future
to recognise Zebra´s share of profit or loss of the investee free cash flows is based on business plans, budget for
after the date of acquisition. The Group´s investment in 2015 and projections for subsequent years. The discount
joint ventures includes goodwill identified on acquisition. rate used to calculate recoverable amounts is the weight-
ed average cost of capital before tax.
When a group entity transacts with a joint venture of the
Group, profits and losses resulting from the transactions The Group discontinues the use of the equity method
with the joint ventures are recognised in the Group´s con- from the date when the investment ceases to be a joint
solidated financial statements only to the extent of inter- venture, or when the investment is classified as held for
ests in the joint venture that are not related to the Group. sale.
Investments
in joint
DKKm ventures
2014
Cost 01.01. 40.2
Additions -
Cost 31.12. 40.2
Adjustment 01.01. 0.5

Exchange rate adjustment (0.2)
Share of profit for the year after tax 5.0
Carrying amount 31.12. 45.5
2013
Cost 01.01.2013 -
Additions 40.2
Cost 31.12.2013 40.2
Adjustment 01.01. -
Share of profit for the year after tax 0.5
Carrying amount 31.12. 40.7
No impairment losses on goodwill have been recognised in 2014 (2013: No impairment losses recognised).
58
3.3 Investments in joint ventures (continued)
Summarised financial information in respect of the in the joint venture´s financial statements prepared in ac-
Group´s joint venture is set out below. The summarised cordance with the IFRS adjusted by the Group for equity
financial information below represents amounts shown accounting purposes:
DKKm 2014 20132
Revnue1 98.6 24.1

Profit for the period1 5.0 0.5
Other comprehensive income 5.0 0.5

Current assets 128.9 72.8
Equity 48.1 38.4
Net working capital 71.9 24.3

Number of stores 13 2
1
Share of profit and loss in joint venture using the equity method.
2
The Group´s portion of the profit in Zebra Japan K.K. from the establishment of the joint venture in 1 June 2013.
3.4 Inventories
Accounting policies
Inventories are measured at the lower of cost using the The net realisable value of inventories is calculated as the
FIFO method and net realisable value. Cost of goods sold estimated selling price less costs incurred to execute sale.
consists of purchase price plus delivery costs as well as
freight and handling costs.
DKKm 2014 2013
Finished goods 725.5 372.5

Write-down to net realizable value (6.4) (3.8)
Total 719.1 368.7
3.5 Working capital changes
DKKm 2014 2013
Change in inventories (350.4) (115.8)

Change in other receivables 7.0 (2.8)
Change in prepayments (24.5) 2.8
Change in trade payables 105.5 58.3
Change in other payables 47.0 52.1
Total (215.4) (5.4)

59
3.6 Guarantee commitments and contingent liabilities
Accounting policies The aggregate benefit of any lease incentives is recognised

Operating lease payments are recognised as an expense as a reduction of rental expense on a straight-line basis
on a straight-line basis over the lease term. Contingent over the lease term.
rentals arising under operating leases are recognised as
an expense in the period in which they are incurred.
DKKm 2014 2013
Non-cancellable operating lease commitments

Not later than 1 year 343.6 206.0
1-5 years 681.8 454.4
Later than 5 years 165.8 59.9
Total 1,191.2 720.3
Operating leases relate to leases of stores and equipment with lease terms of between 1 and 10 years. The majority of
leases contain no contingent rents.
Litigation Bank debt is secured by a mortgage of DKK 25m nominal

A few legal proceedings are pending which are not esti- deposited by the Parent on assets, including the Parent’s
mated to inflict losses on the Group other than what has goodwill, leasehold rights, furniture, including store fur-
been provided for in the financial statements. niture, in the Parent’s stores (2013: DKK 25m).
Other guarantees The foreign-owned companies’ bank debt is secured by

The Group has provided a bank guarantee to HRMC, mortgages on their movable property and inventory of a
UK which amounts to DKK 29m. The Group has provided total nominal amount of DKK 38m (2013: DKK 21m).
a bank guarantee to the Japanese joint venture´s bank
which amounts to DKK 54m. The carrying amount of the above-mentioned pledged
assets is stated below:
Pledged assets
A letter of indemnity (company charge) of DKK 30m
nominal (2013: DKK 30m) has been deposited
by the parent as security for the parent’s bank debt.
DKKm 2014 2013
Pledged assets
Leasehold rights 11.7 12.5
Goodwill 12.5 12.7
Leasehold improvements 22.6 37.6
Other equipment 10.1 9.9
Store furniture 17.5 24.4
Inventories 547.5 274.5
Total 627.0 378.4

60
4.1 Share capital
The share capital consists of shares at DKK 0.1 or multiples thereof.

The shares have been divided into classes:
Class A 3,361,220
Class B 894,920
Class C 894,920
Class D 0
Special economical rights and special voting rights apply to the different share classes.
Changes in share capital in the past five financial years:

DKK'000
Share capital at 1 January 2009 550

Capital reduction 2012 (45)
Capital increase 2013 10
Share capital at 31 December 2014 515

61
4.2 Financial assets and liabilities
Accounting policies Other debt is recognised at amortised costs. However,

Loans and receivables derivative financial instruments are recognised as other
Loans and receivables are measured at amortised cost receivables/payables and measured at fair value. Refer,
using the effective interest method, less any impairment. note 4.3.
Loans and receivables are assessed for indicators of im- Accounting estimates and judgments
pairment at the end of each reporting period. The maturity analysis is based on all undiscounted cash
flows, including estimated interest payments, which are
Bank debt and other financial liabilities estimated based on the current market conditions. The
Bank debt and other financial liabilities are initially undiscounted cash flows from derivative financial instru-
recognised at fair value less transaction costs and subse- ments are presented in gross amounts. The contractual
quently measured at amortised cost using the effective cash flows for the acquisition of non-controlling interests
interest method. The difference between proceeds and are based on estimated redemption amounts, as set out
the nominal value is recognised as a financial expense in note 4.4.
over the term of the loan.
Due
Due between Due Total
within 1 1 and 5 after contractual Carrying
DKKm year year 5 year cash flows amount
2014
Financial assets
Other receivables 67.2 - - 67.2 67.2
Cash and cash equivalents 262.4 - - 262.4 262.4
Total 329.6 - - 329.6 329.6
Financial liabilities
Bank debt 239.2 152.1 - 391.3 389.2
Loans provided by shareholders of non-controlling
interests 28.4 - - 28.4 28.4
Trade payables 232.7 - - 232.7 232.7
Other payables 232.4 - - 232.4 232.4
interests 74.3 755.6 - 829.9 704.8
Total 807.0 907.7 - 1,714.7 1,587.5

62
4.2 Financial assets and liabilities (continued)
Due
Due between Due Total
within 1 1 and 5 after contractual Carrying
DKKm year year 5 year cash flows amount
2013
Financial assets
Other receivables 21.8 - - 21.8 21.8
Cash and cash equivalents 198.0 - - 198.0 198.0
Total 219.8 - - 219.8 219.8
Financial liabilities
Bank debt 187.9 6.4 - 194.3 193.7
Loans provided by shareholders of non-controlling
interests 16.5 - - 16.5 16.5
Trade payables 127.2 - - 127.2 127.2
Other payables - - - - -
interests - 431.3 - 431.3 363.5
Total 331.6 437.7 - 769.3 700.9
Financial risk management The Group’s general policy with respect to financial risks
The nature of the Group’s operations, investment and is that they should be ad-dressed in order to exclude the
financing exposes the Group to market risks in the form risk of material impacts to the financial situation of the
of changes in foreign exchange rates and interest levels Group, which could negatively influence the operations.
as well as credit risks and liquidity risks. It is the Group’s policy not to engage in active speculation
in financial risks.
63
4.3 Financial instruments
Accounting policies Derivatives not fulfilling the conditions for treatment as

It is the Group´s policy to manage currency and inter- hedging instruments are considered trading portfolios
est rate risks. Derivative financial instruments are not and measured at their fair values, with fair value ad-
used speculatively. On initial recognition, derivatives are justments being recognised, on an ongoing basis, in the
measured at their fair values at the settlement date. After income statement.
initial recognition, derivatives are measured at their fair
values at the balance sheet date. The positive or negative Foreign currency risk
fair values of derivatives are recognised as separate items At 31 December 2014 and 31 December 2013, the Group
in the balance sheet. Forward exchange contracts and in- had not entered into financial instruments to hedge risk
terest swaps are measured based on current market data of financial assets or liabilities.
and by use of commonly recognised valuation methods.
It is the Group’s policy to hedge foreign currency risk
Any changes in fair values of derivatives classified as and regarding 80% of expected procurement. Open foreign
satisfying the conditions for effective hedging of future exchange contracts at 31 December 2014 can be seen as
transactions are recognised in other comprehensive in- follows (the remaining maturities reflect the period for
come. The ineffective portion is recognised directly in the which the hedged cash flows are expected to be realised):
income statement. On realisation of the hedged transac-
tions, the accumulated changes are recognised together
with the particular transactions.
Fair value
adjustment
recognised
in other
Fair compre-
Contract value hensive
DKKm Remaining maturity value adjustment income
2014
Forward exchange contracts - USD 0-12 months 727.3 54.1 54.1
Total 727.3 54.1 54.1
Fair value
adjustment
recognised
in other
Fair compre-
Contract value hensive
DKKm Remaining maturity value adjustment income
2013
Forward exchange contracts - USD 0-12 months 469.4 (9.4) (9.4)
Foreign exchange options - USD 0-6 months 163.7 (3.3) (3.1)
Total 633.1 (12.7) (12.5)

64
4.3 Financial instruments (continued)
The Group’s most material exchange rate risk is the expo- ings, and by the use of interest rate swap contracts and
sure to USD purchases. The Group’s foreign subsidiaries’ forward interest rate contracts. Hedging activities are
exposure to currency fluctuations are to some extent evaluated regularly to align with interest rate views and
mitigated by the fact that both revenue and administra- defined risk appetite, ensuring that the most cost-effec-
tive costs of the individual subsidiaries are denominated tive hedging strategies are applied.
in the same currencies.
The income statement is affected to a minor extent by The Group’s interest-bearing financial assets are limited
changes in exchange rates, as the profit of foreign sub- to cash holdings.
sidiaries is translated into Danish kroner using average
exchange rates. Interest-bearing financial liabilities relate to bank loans
and borrowings, as set out in notes 4.2.
Interest rate risk
The Group is exposed to interest rate risk because entities Interest rate swaps are used for cash flow hedging, where
in the Group borrow funds at variable interest rates. The the underlying floating interest rates are hedged. At 31
risk is monitored by the Group in order to maintain an December 2014, the outstanding interest swaps had the
appropriate mix between fixed and floating rate borrow- following market value:
Gain/(loss) Recognised
Contract at 31 in fair value
DKKm amount December reserve
2014
Interest rate swaps, expiry December 2016 150.0 (1.7) (1.7)
Total 150.0 (1.7) (1.7)
At 31 December 2013, there were no outstanding interest rate swaps.
The sensitivity analysis below has been determined based The Group’s liquid reserves consist of cash holdings and
on the exposure to interest rates for financial instruments undrawn credit facilities. The availability of cash and
at the end of the reporting period. For floating rate liabil- cash equivalents held in subsidiaries that are less than
ities, the analysis is prepared assuming that the amount 100% owned by the Group is restricted to the extent that
of the outstanding liability at the end of the reporting non-controlling interests in the respective subsidiaries
period was outstanding for the whole year. hold dividend rights over available liquidity.
A change in interest levels will impact the Group’s cash Credit risk
holdings, bank debt and borrowings that are subject to The Group’s sales to customers are mainly cash sales,
variable interest rates. An increase in interest levels of 1 which limits the credit risk in the Group.
percentage point annually compared to the interest rates
at 31 December 2014 would have a negative impact of Optimising the capital structure
DKK 2.7m on the Group’s profit for the year and equity The Group manages its capital to ensure that entities
(2013: DKK 2.1m). A corresponding decrease in interest in the Group will be able to continue as going concern
levels would mean a correspondingly positive impact on while maximising the return to stakeholders through the
profit for the year and equity. optimisation of the debt and equity balance.
Liquidity risk The capital structure of the Group consists of net inter-
It is the Group’s policy in connection with securing financ- est-bearing debt and equity of the Group, comprising
ing to ensure the maximum flexibility via use of bank issued capital, reserves and retained earnings.
deposits with banks with the highest credit rating and
treasury bills. The Group is not subject to any externally imposed capital
requirements.

65
4.4 Provisions for the acquisition of non-controlling

interests
Accounting policies ed on realised financial figures for two financial years.

Provisions for the acquisition of non-controlling interests The calculation of the provisions for the put options are
are stated at fair value. The value is determined by means based on the general assumption that the local partners
of the estimated present value of the expected cash out- all exercise their put options at year-end in the current
flows to settle the put option liability, based on projected financial year (31 December 2014) with the contractually
results and agreed EBITDA multiples and assuming that determined notice period of 12 months. None of the local
the put options are exercised by the non-controlling in- partners has at year-end 2014 exercised their put options
terests at 31 December 2014. It should however be noted and it should also be noted that Zebra for certain of the
that at 31 December 2014, Zebra A/S has not received local partners under the terms of these put options under
notice of exercise of any put options. normal circumstances has the opportunity to limit the
number of these partners allowed to exercise their put
In line with the nature of the put option, the liability is options to one every financial calendar year.
classified as long term except for called options to be paid
within a year, which are classified as short term liabilities. In accordance with IFRS, the put option over sharehold-
Changes in the value of these liabilities as well as differ- ings held by non-controlling interest is included as a pro-
ences upon settlement between the actual cash outflow vision in the financial statements, reflecting the estimated
and the expected cash outflows, are accounted for as a present value of the expected cash outflows to settle the
transaction directly in equity. liability based on projected results and based on the men-
tioned general assumption on collective exercise at 31
Subsidiaries whose non-controlling shareholdings are December 2014. As such, the actual cash outflows in the
subject to put options are fully consolidated, with no regard might materially vary from the valuation of the
recognition of a non-controlling interest. provisions for the acquisition of non-controlling interests
if the timing of the actual acquisition of the non-con-
Critical accounting estimates and judgments trolling shareholders differs from the assumptions
The Group has entered into put and call options with applied, if the additional ownership interest is acquired
non-controlling interests of certain Group entities. via exercise of the aforementioned call option rather than
The put option gives the non-controlling shareholder the non-controlling shareholders´ respective put option or
the right to sell its non-controlling interest to the Group if the results of the respective subsidiary companies vary
at a defined exercise price that reflects EBITDA multi- from the Executive Management´s projections.
ples. At the same time, Zebra A/S has call options over
the non-controlling shareholdings with defined exercise The discount rate of 12% applied in discounting the
prices reflecting EBITDA multiples that differ from those expected cash outflows is based on an interest rate that
relevant for the aforementioned put options. reflects the current market assessment of the time value
of money, taking into account the expected settlement of
The exercise prices are determined by contractually these liabilities.
defined EBITDA multiples for the put options calculat-
DKKm 2014 2013
Balance 01.01. 363.5 234.0

New provision 7.1 33.4
Reduction of provisions due to acquisition of non-controlling interests (0.7) (6.8)
Changes in value 332.3 113.3
Foreign exchange adjustment 2.6 (10.4)
Balance 31.12. 704.8 363.5

66
5.1 Audit fee
DKKm 2014 2013
EY (2013: Deloitte)
Statutory audit of financial statements 2.1 1.3
Other assurance engagements 0.1 0.1
Tax advisory services 1.0 0.1
Other services 1.7 2.5
Total 4.9 4.0
5.2 Related parties
Zebra A/S is subject to controlling influence by Zebra Lux Management

Holding S.à.r.l., 23 rue Aldringen, L-1118, Luxembourg, Related parties in Zebra A/S with significant influence
which holds 67% of the share capital. include the Group’s Executive Management and Board
of Directors and their close relatives. Related parties
Zebra A/S has registered the following shareholders who also comprise companies in which these individuals have
hold 5% or more of the share capital: material interests.
- Zebra Lux Holding S.à.r.l., 23 rue Aldringen, L-1118 Other than remuneration as set out in note 2.1, there
Luxembourg has been no trading with members of key management
- Mitco ApS, c/o Piaster Revisorerne, Abildgårdsparken 8A, personnel or their close relatives.
3460 Birkerød.
Joint Ventures
During 2014 and 2013 there were no transactions with The related parties of Zebra A/S also include the joint ven-
these related parties. ture in which the company participates, Zebra Japan K.K.
Balances and transactions between the Company and During the year, the Group received royalty and service
its subsidiaries, which are related parties of the Compa- fee in the amount of DKK 13.7m from joint venture com-
ny, have been eliminated on consolidation and are not panies (2013: DKK 3.4m).
disclosed in this note. Details of transactions between the
Group and other related parties are disclosed below. At 31 December 2014, joint venture companies owed the
Group DKK 1.8m (2013: DKK 0.8m). All amounts outstand-
ing are unsecured and will be settled in cash.
5.3 Events after the balance sheet date
No events have occurred after the balance sheet date

that have a material impact on the financial position of
the Group.
67
5.4 List of group companies
Investment in subsidiary companies comprise the following at 31 December 2014 and 31 December 2013, unless
otherwise indicated.
Year of Ownership
Name Home establisment interest
Tiger Ísland ehf. Reykjavík, Iceland 2001 100%

Tiger Retail Ltd. London, England 2005 50%
Tiger Deutschland GmbH Flensburg, Germany 2007 50%
Tiger Stores Nederland B.V. Utrecht, the Netherlands 2008 50%
Tiger Stores Spain, S.L. Madrid, Spain 2008 50%
TZ-shops South Sweden AB Malmö Sweden 2008 50%
SIA Tiger Shop Riga, Latvia 2009 50%
Tiger Shop UAB Vilnius, Lithuania 2010 50%
Tiger Hellas S.A. Thessaloniki, Greece 2010 50%
TP Stores AB Segelstorp, Sweden 2011 50%
Tiger Italia 1, S.r.l. Turin, Italy 2011 50%
Tiger Warsaw Sp. Z.o.o. Warszawa, Poland 2011 50%
Tiger Retail Ireland Ltd. Dublin, Ireland 2011 50%
TGR Norge AS Oslo, Norway 2011 50%
TZ Stores Ltd. Dunblane, Scotland 2011 100%
Tiger Stores OY Espoo, Finland 2011 100%1
Zebra Japan K.K. Tokyo, Japan 2011 50%2
Tiger Trading GmbH Berlin, Germany 2012 50%
HK China Trading Holding Ltd. Hong Kong 2012 100%
HK Beijiang Retail Holding Ltd. Hong Kong 2012 100%
HK Japan Holding Ltd. Hong Kong 2012 100%
Tiger Forum ApS Copenhagen, Denmark 2012 100%
Tiger Italy 2, S.r.l. Rome Italy 2012 50%
Tiger Stores (NI) Ltd. Newry, Northern Ireland 2012 50%
Tiger Portugal S.A. Carneca, Portugal 2012 50%
Tiger Carnarias, S.L. Las Palmas, Spain 2013 50%
Tiger South Spain, S.L. Malaga, Spain 2013 50%
Tiger Italy 3, S.r.l. Mascalucia, Italy 2013 50%
Tiger Stores North West Spain, S.L. La Coruña, Spain 2013 50%
Tiger Cardiff Ltd. Newport, Wales 2013 50%
Tiger Stores Spain 6, S.L. Madrid, Spain 2013 50%
Tiger U.K. (Midlands) Ltd. Glostershire, England 2013 50%
Tiger Stores Belgium, BVBA Antwerp, Belgium 2013 50%
Sp/f Tiger Førorar Saltangará, Faroe Islands 2013 100%
Zebra (Beijing) Trading Co., Ltd. Beijing, China 2013 100%
Tiger Stores Austria GmbH Wien, Austria 2014 50%
Tiger Stores Belgium 2 SPRL Chénée, Belgium 2014 50%
Tiger Stores Cyprus Limited Nicosia, Cyprus 2014 50%
Tiger Czech Republic s.r.o. Prague, Czech Republic 2014 50%
Tiger Stores OU Estonia Tallinn, Estonia 2014 50%
Tiger Stores Spain 5, S.L. Bilbao, Spain 2014 50%
Tiger Stores France SAS Nice, France 2014 50%
Tiger Poland 2 Sp. z. o. o. Poznan, Poland 2014 50%
Tiger Magazacilik Ticaret Anonim Sirketi Istanbul, Turkey 2014 100%
Tiger Retail Germany 03 GmbH Munich, Germany 2014 100%
Tiger Stores Spain 7, S.L. Barcelona, Spain 2014 100%
Tiger Stores France 2 SAS Paris, France 2014 100%
Tiger Stores France 3 SAS Paris, France 2014 100%
Zebra US Holding, Inc. Delaware, United States 2014 100%
Tiger Retail East Coast, LLC New York, United States 2014 100%
Tiger Stores Slovakia S.R.O. Bratislava, Slovakia 2014 50%
1
(75% until 31.12.2013)
2
(100% until 31.05.2013)
The voting interest correspond to ownership interests. Please refer to note 1.2 regarding consolidation of 50% owner-
ship interests.
READING GLASSES
DKK 30
Zebra A/S – Annual Report 2014 Financial Statements – Parent Company
69
Financial statements
– Parent Company
70 Income statement
72 Balance sheet
74 Statement of changes in equity
75 Cash flow statement

Basis of preparation Section 1
76 General accounting policies Note 1.1
77 Critical accounting estimates and judgments Note 1.2

Results for the year Section 2
78 Revenue Note 2.1
78 Staff costs Note 2.2
79 Special items Note 2.3
79 Financial expenses Note 2.4
80 Income taxes and deferred tax Note 2.5

Operating assets and liabilities Section 3
81 Intangible assets Note 3.1
82 Property, plant and equipment Note 3.2
83 Investments in subsidiaries and joint ventures Note 3.3
84 Receivables from subsidiaries Note 3.4
84 Working capital changes Note 3.5
85 Guarantee commitments and contingent liabilities Note 3.6

Capital structure and financing Section 4
86 Share capital Note 4.1
86 Bank debt Note 4.2
86 Financial instruments Note 4.3

Other disclosures Section 5
87 Audit fee Note 5.1
87 Related parties Note 5.2
88 Events after the balance sheet date Note 5.3
Financial Statements – Parent Company Zebra A/S Annual Report 2014
70
Income statement – Parent

1 January - 31 December
DKKm Note 2014 2013
Revenue 2.1 1,455.0 1,068.1

Cost of sales (968.0) (659.8)
Gross profit 487.0 408.3
Other external expenses (165.0) (147.0)

Staff costs 2.2 (225.9) (175.1)
EBITDA before special items 96.1 86.2
Amortisation and depreciation (15.8) (15.4)
Operating profit (EBIT) before special items 80.3 70.8
Special items 2.3 - 31.7
Income from investments in subsidiaries 8.5 4.6

Financial income 2.3 2.7
Financial expenses 2.4 (20.6) (28.4)
Profit before tax 70.5 81.4
Tax on profit for the year 2.5 (17.4) (9.4)
Profit for the year 53.1 72.0
Proposed appropriation of profit for the year:

Retained earnings 53.1 72.0
53.1 72.0
71
Statement of other comprehensive income – Parent
DKKm Note 2014 2013
Profit for the year (brought forward) 53.1 72.0
Items that may be reclassified subsequently to profit or loss:

Value adjustment of hedging instruments for the year 52.4 (12.5)
Tax relating to items that may be reclassified subsequently (12.5) 3.0
Other comprehensive income 39.9 (9.5)
Total comprehensive income for the year 93.0 62.5

Financial Statements – Parent Company Zebra A/S – Annual Report 2014
72
Balance sheet – Parent

31 December
Assets
DKKm Note 2014 2013
Intangible assets 3.1 40.4 24.9

Property, plant and equipment 3.2 35.3 35.2
Investment in subsidiaries and joint ventures 3.3 72.6 71.7
Receivables from subsidiaries 3.4 60.6 44.8
Leasehold deposits 8.6 8.1
Deferred tax 2.5 - 3.7

Receivables from subsidiaries 118.5 101.8
Receivables from joint ventures 1.8 0.8
Prepayments 10.1 3.1
Cash and cash equivalents 8.2 25.1
Current ssets 741.0 405.0
Assets 958.5 593.4

73
Balance sheet – Parent

31 December
Equity and liabilities

DKKm Note 2014 2013
Share capital 4.1 0.5 0.5

Reserves 30.4 (9.5)
Retained earnings 340.0 286.9
Equity 370.9 277.9
Bank debt 4.2 150.0 -

Deferred tax 2.5 13.6 -
Non-current liabilities 163.6 -
Bank debt 4.2 177.5 161.7

Trade payables 180.3 77.4
Amounts payable to subsidiaries 4.2 -
Other payables 51.3 68.8
Income tax payable 10.7 7.6
Liabilities 587.6 315.5
Equity and liabilities 958.5 593.4

74
Statement of changes in Equity – Parent
Share Retained
DKKm capital Reserves earnings Total
2014
Equity at 01.01. 0.5 (9.5) 286.9 277.9
Other comprehensive income for the year, net of tax - 39.9 - 39.9
Equity at 31.12. 0.5 30.4 340.0 370.9
2013
Equity at 01.01. 0.5 - 187.0 187.5
Other comprehensive income for the year, net of tax - (9.5) - (9.5)
Adjustment - - (0.4) (0.4)
Share capital increase 0.0 - 28.3 28.3
Equity at 31.12. 0.5 (9.5) 286.9 277.9

75
Cash flow statement – Parent
DKKm Note 2014 2013

Gain related to the partial sale of the Japanese business - (39.8)
Depreciation, amortisation and losses from disposal of assets 15.8 15.5
Working capital changes 3.5 (210.9) (71.6)
Interest income received 2.3 2.7
Interest expenses paid (20.6) (28.4)
Income taxes, including surcharge paid (9.5) (28.5)
Cash flows from operating activities (142.6) (47.6)
Investment in intangible assets (16.2) (2.5)

Investment in property, plant and equipment (15.2) (20.7)
Investment in other non-current assets (1.4) (9.7)
Loans to subsidiaries (18.3) (4.1)
Income from investments in subsidiaries 11.0 4.6
Cash flow from investing activities (40.1) (32.4)
Free cash flow (182.7) (80.0)
Share capital increase - 28.4

Proceeds from borrowings 165.8 58.1
Cash flows from financing activities 165.8 86.5
Increase in cash and cash equivalents (16.9) 6.5
Cash and cash equivalents at 1 January 25.1 18.6
Cash and cash equivalents at 31 December 8.2 25.1

76
1.1 General accounting policies
Accounting policies Income tax

The consolidated financial statements for Zebra A/S have The Parent is jointly taxed with all Danish subsidiaries and
been prepared in accordance with International Financial serves as the administration company in the joint taxation
Reporting Standards as adopted by the EU and Danish arrangement. The current Danish income tax is allocated
disclosure requirements applying to companies of report- among the jointly taxed entities proportionally to their
ing class C (large). Please see the Danish Executive Order taxable income.
on IFRS adoption issued in accordance with the Danish
Financial Statements Act. Zebra A/S is a public limited Balances calculated pursuant to the rule on interest de-
company registered in Denmark. duction limitation of the Danish Corporation Tax Act have
been allocated among the jointly taxed entities under the
The Parent generally applies the same accounting policies joint taxation arrangement entered into. Deferred tax li-
for recognition and measurement as the Group. Cases in abilities in respect of these balances are recognised in the
which the Parent´s accounting policies differ from those balance sheet, whereas deferred tax assets are recognised
of the Group are described below. For a detailed specifi- only if they qualify for recognition as deferred tax assets.
cation of the Parent´s accounting policies, please see note
1.1 to the consolidated financial statements. Investment in subsidiaries and joint ventures in the
parent financial statements
Cases in which the Parent´s accounting polices Investments in subsidiaries and joint ventures are mea-
differ from those of the Group sured at cost in the parent financial statements. If cost
Foreign currency translation exceeds the recoverable amount of the investments, the
Currency adjustments of receivables from or payables investments are written down to such lower amount.
to subsidiaries which are considered part of the Parent´s
total investment in the relevant subsidiary are recognised In connection with sale of investments in subsidiaries and
in profit or loss in financial income or financial expenses. joint ventures, profits or losses are calculated as the dif-
In the consolidated financial statements, the currency ference between the carrying amount of the investments
adjustment is recognised in other comprehensive income. sold and the fair value of the sales proceeds.
Options held to acquire non-controlling interests in Effect of new and revised accounting standards not
subsidiaries yet effective
Put and call options held for the acquisition of non-con- Please refer to note 1.1 to the consolidated financial
trolling interests in subsidiaries are accounted for as statements.
derivatives over the Company at fair value through profit
and loss.
77
1.2 Critical accounting estimates and judgments
The Executive Management regards the following as the If dividends distributed exceed the comprehensive income
key accounting estimates and assumptions used in the of the relevant entity in the period for which dividend
preparation of the parent financial statements: is distributed, this is considered an indication of impair-
ment. If, in the consolidated financial statements, write-
Options on non-controlling interests in certain down of goodwill attributable to a subsidiary or a joint
subsidiaries venture is recognised, this is also considered an indication
The parent company holds call options and the non-con- of impairment. At the balance sheet date, it has been
trolling interests (the local partners) hold put options assessed that there are no indicators of impairment and
over the remaining ownership interests in certain local no impairment losses have been recognised.
subsidiaries. These options are measured at fair value
through profit or loss unless the fair value cannot be de- Other significant accounting estimates, assump-
termined reliably. As the call options and the put options tions and uncertainties
are based on equity instruments for subsidiaries that do For a description of other material accounting estimates,
not have a quoted price in an active market and due to assumptions and uncertainties, please refer to note 1.2 to
the impact of the contractual arrangements between the the consolidated financial statements.
parent company and the subsidiaries, it is believed that
the fair value of these options cannot be determined
reliably. Consequently, the options are measured at cost
which based on the initial assessment at conclusion of the
options amounts to a net amount of DKK 0.
Recoverable amount of investments in subsidiaries

and joint ventures
All subsidiaries and joint ventures of the Group are con-
sidered independent cash-generating entities. If there is
any indication of the carrying amount (cost) of invest-
ments in subsidiaries or joint ventures being impaired,
any impairment loss is determined based on the calcula-
tion of the value-in-use of the relevant entity.
78
2.1 Revenue
DKKm 2014 2013
Retail sale 546.2 525.9

Wholesale, mainly foreign subsidiaries 908.8 542.2
Total 1,455.0 1,068.1
2.2 Staff costs
DKKm 2014 2013

Pension contributions 15.7 9.8
Other social security costs 1.2 2.8
Other staff costs 6.6 4.5
Total 225.9 175.1

Total remuneration, Executive Management 12.9 10.7
Total remuneration, Board of Directors 1.2 1.0
Total 14.1 11.7

Pension expenses 0.3 1.0
Total 14.1 11.7
Average number of employees 505 420

79
2.3 Special items
DKKm 2014 2013
Gain related to the partial sale of the Japanese business - 35.8

Costs associated with establishment of new management team - (4.1)
Total - 31.7
2.4 Financial expenses
DKKm 2014 2013
Bank charges 5.6 17.0

Interests 14.0 8.0
Exchange rate adjustments 1.0 3.4
Total 20.6 28.4

80
2.5 Income taxes and deferred tax
DKKm 2014 2013
Current tax 11.9 13.1

Adjustment to current tax concerning previous years 0.7 -
Change in deferred tax 4.8 (3.7)
Total 17.4 9.4
Reconciliation of tax rates:

Percentage 2014 2013
Danish income tax rate 24.5 25.0

Permanent differences, disposal of subsidiary and non-taxable dividends (1.0) (13.4)
Other items, including prior-year adjustments 1.2 -
Average effective tax rate 24.7 11.6
Deferred tax
DKKm 2014 2013
Deferred tax assets - 3.7

Deferred tax liabilities (13.6) -
Total (13.6) 3.7
Realised
in other Realised
Deferred Realised compre- directly Deferred
tax in profit hensive within tax
2014, DKKm 01.01 and loss income equity 31.12
Intangible assets (2.4) (3.6) - - (6.0)

Property, plant and equipment (0.7) 0.5 - - (0.2)
Provisions 3.7 (1.7) - - 2.0
Cash flow hedging 3.1 - (12.5) - (9.4)
Temporary differences 3.7 (4.8) (12.5) - (13.6)
Realised
in other Realised
Deferred Realised compre- directly Deferred
tax in profit hensive within tax
2013, DKKm 01.01 and loss income equity 31.12
Intangible assets (1.9) - - (0.5) (2.4)

Property, plant and equipment (0.7) - - - (0.7)
Provisions - 3.7 - - 3.7
Cash flow hedging - - 3.1 - 3.1
Temporary differences (2.6) 3.7 3.1 (0.5) 3.7

81
3.1 Intangible assets
Intangible
Licenses and assets in
DKKm Goodwill Leasehold Trademarks software progress Total
2014
Cost 01.01. 12.5 18.1 - - - 30.6
Additions - - 1.1 5.4 9.7 16.2
Transfer - - - 8.5 (8.5) -
Disposals - - - - - -
Cost 31.12. 12.5 18.1 1.1 13.9 1.2 46.8
Amortisation 01.01. - (5.7) - - - (5.7)

Amortisation - (0.7) - - - (0.7)
Disposals - - - - - -
Amortisation 31.12. - (6.4) - - - (6.4)
Carrying amount 31.12. 12.5 11.7 1.1 13.9 1.2 40.4
2013
Cost 01.01. 12.5 16.7 - - - 29.2
Additions - 3.9 - - - 3.9
Disposals - (2.5) - - - (2.5)
Cost 31.12. 12.5 18.1 - - - 30.6
Amortisation 01.01. - (5.9) - - - (5.9)

Amortisation - (1.0) - - - (1.0)
Disposals - 1.2 - - - 1.2
Amortisation 31.12. - (5.7) - - - (5.7)
Carrying amount 31.12. 12.5 12.4 - - - 24.9

82
3.2 Property, plant and equipment
Leasehold Other
improve- Store equip-
DKKm ments funiture ment Total
2014
Cost 01.01. 36.1 24.6 22.0 82.7
Additions 4.9 6.3 4.0 15.2
Disposals (4.1) (2.6) (0.4) (7.1)
Cost 31.12. 36.9 28.3 25.6 90.8
Depreciation 01.01. (19.1) (13.3) (15.1) (47.5)

Depreciation (5.1) (5.3) (4.4) (14.8)
Disposals 3.8 2.6 0.4 6.8
Depreciation 31.12. (20.4) (16.0) (19.1) (55.5)
Carrying amount 31.12. 16.5 12.3 6.5 35.3
2013
Cost 01.01. 33.5 18.2 16.9 68.6
Additions 6.5 8.1 5.3 19.9
Disposals (3.9) (1.7) (0.2) (5.8)
Cost 31.12. 36.1 24.6 22.0 82.7
Depreciation 01.01. (17.6) (10.3) (11.7) (39.6)

Depreciation (4.6) (4.1) (3.5) (12.2)
Disposals 3.1 1.1 0.1 4.3
Depreciation 31.12. (19.1) (13.3) (15.1) (47.5)
Carrying amount 31.12. 17.0 11.3 6.9 35.2
Gains and (losses) on property, plant and equipment comprises to DKK 0.3m (2013: DKK 1.5m).
83
3.3 Investments in subsidiaries and joint ventures
Invest-
Investments ments in
in joint
DKKm subsidiaries ventures Total
2014
Cost 01.01. 31.6 40.1 71.7
Additions 3.5 - 3.5
Disposals (0.1) - (0.1)
Cost 31.12. 35.0 40.1 75.1
Impairment losses 01.01. - - -

Impairment losses (2.5) - (2.5)
Impairment losses 31.12. (2.5) - (2.5)
Carrying amount 31.12. 32.5 40.1 72.6
2013
Cost 01.01. 22.8 - 22.8
Additions 9.1 40.1 49.2
Disposals (0.3) - (0.3)
Cost 31.12. 31.6 40.1 71.7
See note 5.4 to the consolidated Financial Statements for a list of Group companies.
84
3.4 Receivables from subsidiaries
DKKm 2014 2013
Due between 1 and 5 years

Loans to subsidiaries 60.6 44.8
Total 60.6 44.8
3.5 Working capital changes
DKKm 2014 2013
Change in inventories (286.4) (83.0)

Change in receivables from subsidiaries (16.7) -
Change in receivables from joint ventures (1.0) (44.3)
Change in other receivables 10.6 (1.5)
Change in prepayments (7.0) 5.0
Change in trade payables 102.9 36.2
Change in payable to subsidiaries 4.2 -
Change in other payables (17.5) 16.0
Total (210.9) (71.6)

85
3.6 Guarantee commitments and contingent liabilities
Operating lease arrangements

DKKm 2014 2013
Non-cancellable operating lease commitments

Not later than 1 year 36.5 32.8
1-5 years 39.1 40.3
Later than 5 years 8.3 1.2
Total 83.9 74.3
Operating leases relate to leases of stores and equipment with lease terms of between 1 and 10 years. The majority of
leases contain no contingent rents.
Litigation Group and is under an unlimited and joint liability regime

A few legal proceedings are pending which are not esti- for all Danish tax payments and withholding taxes on
mated to inflict losses on the Parent other than what has dividends, interests and royalties from the jointly taxed
been provided for in the financial statements. entities.
Other guarantees and contingent liabilities Pledged assets

The Parent has guaranteed or provided a bank guarantee A letter of indemnity (company charge) of DKK 30m nom-
for banking facilities, etc. for subsidiaries at a total of inal (2013: DKK 30m) has been deposited by the Parent as
DKK 44m (2013: DKK 52m). security for the parent’s bank debt.
The Parent has provided a bank guarantee to HRMC, Bank debt is secured by a mortgage of DKK 25m nominal
UK which amounts to DKK 29m. The Parent has provid- deposited by the Parent on assets, including the Parent’s
ed a bank guarantee to the joint venture´ bank which goodwill, leasehold rights, furniture, including store furni-
amounts to DKK 54m. ture, in the Parent’s stores (2013: DKK 25m).
With respect to a grant received from the Icelandic gov- The foreign entities’ bank debt is secured by mortgages on
ernment, the Parent has repayment obligations should the their movable property and inventory of a total nominal
Company dispose its investments in Iceland before 2017. amount of DKK 38m (2013: DKK 21m).
Zebra A/S is the administration company of the joint The carrying amount of the above-mentioned pledged
taxation arrangement with the Danish subsidiaries in the assets is stated below:
DKKm 2014 2013
Pledged assets
Leasehold rights 11.7 12.4
Goodwill 12.5 12.5
Leasehold improvements 16.5 17.0
Other equipment 6.5 6.9
Store furniture 12.3 11.3
Total 790.4 428.0

86
4.1 Share capital
The share capital consists of shares at DKK 0.1 or multiples thereof.

The shares have been divided into classes:
Class A 3,361,220
Class B 894,920
Class C 894,920
Class D 0
Special economical rights and special voting rights apply to the different share classes.
Changes in share capital in the past five financial years:
DKK'000
Share capital at 1 January 2009 550

Capital reduction 2012 (45)
Capital increase 2013 10
Share capital at 31 December 2014 515
4.2 Bank debt
Due
Due between Due
within 1 1 and 5 after
DKKm year year 5 year
2014
Bank debt 177.5 150.0 -
Total 177.5 150.0 -
4.3 Financial instruments
Options on non-controlling interests in certain tions are measured at cost which is a net amount of DKK
subsidiaries 0m (2013: DKK 0).
As further described in note 1.2, put and call options for
the acquisition of non-controlling interests in certain sub- Other derivative financial instruments and financial
sidiaries are accounted for at fair value. At the balance risks
sheet date, is assessed that the fair value of these options Please refer to note 4.3 in the consolidated financial
cannot be determined reliably and consequently the op- statements for more information regarding other deriva-
tive financial instruments and financial risks.
87
5.1 Audit fee
DKKm 2014 2013
EY (2013: Deloitte)
Statutory audit of financial statements 0.5 0.5
Other assurance engagements - -
Tax advisory services 0.6 0.1
Other services 1.4 2.5
Total 2.5 3.1
5.2 Related parties
Please refer to note 5.2 to the consolidated financial In addition to the payment of dividends, the Parent has
statements for information on related parties. had the following transactions with related parties:
Subsidiaries and associated companies

Refer to note 5.4 to the consolidated financial statements
for a list of subsidiaries and investments in joint ventures.
Joint
DKKm Subsidiaries ventures Total
2014
Sale of goods 895.1 - 895.1
Royalty and service fee - 13.7 13.7
Dividends received 11.0 - 11.0
2013
Sale of goods 536.6 - 536.6
Royalty and service fee - 3.4 3.4
Dividends received 4.6 - 4.6
There have been no transactions with the controlling

shareholder and companies owned or otherwise controlled
by EQT. Remuneration paid to key management personnel
are included in note 2.2.
88
5.2 Related parties (continued)
Amounts receivable/payable with related parties, parent
DKKm 2014 2013
Current loans:
Receivables from subsidiaries, long term 60.6 44.8
Receivables from subsidiaries, short term 118.5 101.8
Receivables from joint ventures 1.8 0.8
Total 180.9 147.4
The amounts outstanding are unsecured and will be set-

tled in cash. No guarantees have been given or received.
No expense has been recognised in the current or prior
years for bad or doubtful debts in respect of the amounts
owed by related parties.
5.3 Events after the balance sheet date
No events have occurred after the balance sheet date

that have a material impact on the financial position of
the parent company.
HANGER
DKK 10
PARTY PROPS
DKK 20
Zebra A/S – Annual Report 2014 Management statement
91
Management
statement
The Board of Directors and the Executive Management have today discussed and approved the annual report of
Zebra A/S for the financial year 2014.
The annual report has been prepared in accordance with International Financial Reporting Standards as adopted
by the European Union and further disclosure requirements required according to the Danish Financial
Statements Act.
It is our opinion that the consolidated financial statements and the parent company financial statements give
a true and fair view of the Group’s and the Parent Company’s financial position at 31 December 2014, the
results of the Group and Parent Company’s operations and cash flows for the financial year 1 January –
31 December 2014.
In our opinion, the Management review includes a fair review of the development in the Group’s and the
Parent Company’s operations and financial conditions, the results for the year, cash flows and financial position
as well as a description of the most significant risks and uncertainty factors that the Group and the Parent
Company face.
We recommend that the annual report be approved at the annual general meeting.
Copenhagen, 29 April 2015
Executive Management
Xavier Vidal Henrik Skov Tahir Hussain

CEO CFO International Director
Board of Directors
Ole Andersen Michael Hauge Sørensen Manel Adell Domingo Rolf Eriksen
Chairman
Morten Hummelmose Lennart Lajboschitz Jacob Bier

Independent Auditors’ opinion Zebra A/S – Annual Report 2014
92
Independent
Auditors’
opinion
To the shareholders of Zebra A/S
Report on the consolidated financial statements and

the parent company financial statements
We have audited the consolidated financial statements and the parent company financial statements of Zebra
A/S for the financial year 1 January – 31 December 2014. The consolidated financial statements and the parent
company financial statements comprise income statement, statement of comprehensive income, balance sheet,
statement of changes in equity, cash flow statement and notes, including a summary of significant accounting
policies for the Group as well as for the parent company. The consolidated financial statements and the parent
company financial statements are prepared in accordance with International Financial Reporting Standards as
adopted by the EU and additional disclosure requirements in the Danish Financial Statements Act.
Management’s responsibility for the consolidated financial statements

and the parent company financial statements
Management is responsible for the preparation of consolidated financial statements and parent company finan-
cial statements that give a true and fair view in accordance with International Financial Reporting Standards as
adopted by the EU and additional disclosure requirements in the Danish Financial Statements Act and for such
internal control that Management determines is necessary to enable the preparation of consolidated financial
statements and parent company financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on the consolidated financial statements and the parent company
financial statements based on our audit. We conducted our audit in accordance with International Standards on
Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance as to whether the consolidated
financial statements and the parent company financial statements are free from material misstatement.
Zebra A/S – Annual Report 2014 Independent Auditors’ opinion
93
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements and the parent company financial statements. The procedures selected depend
on the auditors’ judgement, including the assessment of the risks of material misstatement of the consolidated
financial statements and the parent company financial statements, whether due to fraud or error. In making
those risk assessments, the auditors consider internal control relevant to the Company’s preparation of consol-
idated financial statements and parent company financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropri-
ateness of accounting policies used and the reasonableness of accounting estimates made by Management, as
well as evaluating the overall presentation of the consolidated financial statements and the parent company
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Our audit has not resulted in any qualification.
Opinion
In our opinion, the consolidated financial statements and the parent company financial statements give a true
and fair view of the Group’s and the parent company’s financial position at 31 December 2014 and of the results
of the Group’s and the parent company’s operations and cash flows for the financial year 1 January – 31 Decem-
ber 2014 in accordance with International Financial Reporting Standards as adopted by the EU and additional
disclosure requirements in the Danish Financial Statements Act.
Statement on the Management’s review

Pursuant to the Danish Financial Statements Act, we have read the Management’s review. We have not per-
formed any further procedures in addition to the audit of the consolidated financial statements and the parent
company financial statements. On this basis, it is our opinion that the information provided in the Manage-
ment’s review is consistent with the consolidated financial statements and the parent company financial state-
ments.
Copenhagen, 29 April 2015

ERNST & YOUNG
Godkendt Revisionspartnerselskab
Torben Bender Thomas Bruun Kofoed

State Authorised State Authorised
Public Accountant Public Accountant
BALLOONS
DKK 10
Zebra A/S
Raadhuspladsen 59, 3 floor
DK-1550 Copenhagen V
Denmark
Central Business Registration
No: 15 69 04 88
www.tiger-stores.com

Tiger

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Zebra A/S – Annual Report 2014 Management Commentary

09 Operating and financial review 2014

23 Corporate social responsibility

39 Consolidated financial statements

69 Financial statements – Parent Company

92 Independent Auditors’ opinion

The evolution of Tiger

Danish “one dollar” Stylish international

Multi round price points

Brand The name of a store a growing

Existing markets 2013

Total number of stores 2014 (Net new stores 2014)

ENGLAND 69 (+5) LITHUANIA

IRELAND 36 (+11) 6 (+0)

4 (+3) 23 (+7) CZECH REPUBLIC

Revenue 2,464.2 1,710.9 1,100.2 710.1 519.8

Financial position at 31 December

Total assets 1,555.9 929.7 580.6 309.0 203.2

Cash flow and investments

Revenue growth 44.0% 55.5% 54.9% 36.6% 29.0%

Proforma consolidated financial information4

Proforma revenue 2,562.8 1,735.0 - - -

Management launched a number of initiatives to mitigate the negative

EBITDA Development in earnings

Free cash flow and net interest-bearing debt

To improve inventory turnover Management is strengthening process-

Provisions for the acquisition of non-controlling

Equity under IFRS amounted to DKK (100)m at 31 December 2014, com-

Japanese joint venture

The Japanese joint venture reported strong growth in 2014. Revenue

Proforma consolidated financial information

revenue ed in key figures.

Organisation and Management

Brand and retail concept up to

Partners are typically individuals or a small group of people with an en-

It is part of Zebra’s strategy to take full ownership of the local operating

Financial and operating model

Supply chain model

A large part of the logistics is outsourced to external operators facilitat-

Increasing comparable store sales growth

Increase store penetration in existing markets

Geographical expansion into new markets

Increase operating margin from scale advantages

Activities and results

Responsible supply chain management

Collaboration with suppliers and continuous improvements are central to

Apart from serving the important purpose of providing valuable informa-

The audit programme will be scaled-up in 2015 with the employment of

Product health and safety

In 2014, Zebra focused on building in-house capacity, including strength-

Inside the Group’s own facilities, focus is currently on environmental

The content of the Board meetings is determined by the Board’s meeting

Board activities in 2014

Internal control system

Ownership and capital structure

The Board of Directors of Zebra is composed of 100% male members. It

The exposure to exchange rate fluctuations of Zebra’s foreign subsidiaries

To mitigate competition from other retailers, Zebra continues to invest

Infrastructure and people

To mitigate such potentially negative impact from supply chain disrup-

With regards to the implementation of the new logistics arrangements

In 2014, Zebra established a group HR function for the purpose of sup-

EBITDA margin EBITDA margin before special items