SEGMENT INFORMATION FOR THE GROUP

Business segments

In terms of the primary segment, all the Group’s brands operate in sales of “fashionwear” and, in Management’s opinion, in all material respects all brands have similar risk profiles and similar prerequisites in terms of long-term financial performance. On this basis, the Group does not disclose separate segment information for the individual brands, which is considered to be in compliance with the provisions of IAS 14.

Geographical segments

The Group’s activities are primarily based in Scandinavia (Denmark, Sweden and Norway) and the rest of Europe.

The below table specifies the Group’s sale of goods, broken down by geographic markets, and the allocation of carrying amounts and the additions for the year of property, plant and equipment and intangible assets broken down by geographical areas based on physical location.

DKK million

Scandi-

navia Other Europe Other world Group total

Revenue 1,475.0 1,404.3 142.7 3,022.0 Total segment assets 1,231.8 380.7 52.5 1,665.0 Investments in intangible assets and

property, plant and equipment 210.8 64.1 3.1 278.0

DKK million

Scandi-

navia Other Europe Other world Group total

Revenue 1,336.3 1,332.7 151.6 2,820.6 Total segment assets 1,030.6 394.2 44.8 1,469.6 Investments in intangible assets and

property, plant and equipment 94.4 24.7 4.7 123.8 2004/05 4. REVENUE DKK million 2005/06 2004/05 Own brands 2,975.0 2,761.9 External brands 35.4 50.4 Licence fee 11.6 8.3 Total 3,022.0 2,820.6 GROUP 5. STAFF COSTS DKK million 2005/06 2004/05

Salaries, wages, remuneration, etc. can be specified as follows:

Remuneration to the Board of Directors 1.6 1.3 Salaries, wages and emoluments 592.6 547.8 Defined contribution plans, cf. note 21 21.8 18.7 Defined benefit plans, cf. note 21 (0.5) 3.8 Other social security costs 59.6 58.2

Share-based payment 4.6 24.5

Other staff costs 31.4 21.9

Total 711.1 676.2

Average number of employees 1,989 2,019

Of the total remuneration paid to the Parent Company Executive Board in 2004/05, DKK 3.8 million was paid to an executive who have left the Company.

The members of the Executive Board and a number of other executives are included in a bonus plan whose payments are related to the financial performance of the employee’s own area of responsibility. The bonus potential is in the range of 20-30% of annual salary. The bonus plan is based on profits achieved in the individual financial year, which helps ensure that the Group’s growth targets are met.

The remuneration paid to the members of the Executive Board consists of a cash salary, a 10% pension, an annual bonus, a company car, option and warrant plans, and the usual other benefits.

If a member of the Executive Board is terminated by the Company before reaching retirement age, the Company must pay his salary during the period of notice, which is 12 months, as well as salary for a further 24 months, against which any new salary may be offset.

Stock option programme

No stock options have been granted in 2005/06.

In the spring of 2005, IC Companys granted stock options to the Executive Board (two persons). At 30 June 2006, the stock option plan comprised 200.000 stock options. Each stock option entitles the holder to acquire one existing share of DKK 10 nominal value in the Company. The stock option plan entitles the holders to buy 1.06% of the share capital if all stock options are exercised.

Under the plan, each of the two members of the Executive Board is entitled to buy up to 20,000 shares in the Company in each of the years 2006, 2007, 2008, 2009 and 2010 after the release of the Company’s Annual Report. Exercise of the options is subject to the holder being in continuing employment at the exercise date. No other vesting conditions apply.

The options were issued at an exercise price corresponding to 154.50, and 5% per annum is added to the exercise price calculated from 15 April 2005. Unexercised options from one year cannot be transferred to a subsequent year, and if a member of the Executive Board leaves the Company, all unexercised options will lapse.

The options may only be settled in shares. A part of the Company’s holding of treasury shares is reserved for settlement of the options granted.

In case of major changes in the Company’s owners, the option plan may be settled in its entirety.

Warrant program

In the spring of 2006, the Company granted warrants to seven executive employees who took up their positions since the latest grant in April 2005. The granted warrants provide access to subscribing for a total of 65,000 shares with up to 1/3 in the autumn of 2007, 2008 and 2009 after the release of the Annual Report. The subscription price amounts to 382.7 plus 5% per annum calculated from 19 May 2006. Unexercised warrants from one year may be transferred to the subsequent year during the term of the plan.

In the spring of 2005, IC Companys also granted warrants to a number of key employees (45 persons). The warrants granted entitle the holders to subscribe up to 365,000 shares by up to one third in the autumn of 2006, 2007 and 2008 respectively, after the release of the Annual Report. The subscription price amounts to

In addition to the options and warrants granted in 2004/05, the Company had a stock option plan covering functional directors, functional managers and key employees. Under this plan, options were granted three times, the last of which was on 1 March 2002. The stock options were exercisable in a total of five periods between August 2002 and January 2006. Unexercised options could not be transferred to a subsequent period. The exercise price was calculated in such a way that the allotment price was increased by 5% annually, with the addition of the percentage development in the Copenhagen Stock Exchange all-share index up to the exercise of the options. The allotment price of the options was DKK 75 (June 2000), DKK 92 (February 2001) and DKK 51 (March 2002), respectively.

Exercise of the stock options was subject to the holder being in continuing employment at the exercise date. No other vesting conditions applied.

For the Executive Board, executive employees and key employees in the Parent Company and for executives in the subsidiaries, 717,500, 185,000 and 225,000 warrants were granted in the autumn of 2000, 2001 and 2002, respectively. The warrants granted in the autumn of 2000 each entitled the holder to subscribe for one share at a price of 97 over a three-year period from the autumn of 2003. The warrants granted in the autumn of 2001 each entitled the holder to subscribe for one share at a price of 46 plus 5% per annum over a three-year period from the autumn of 2002. The warrants granted in the autumn of 2002 each entitled the holder to subscribe for one share at a price of 35 plus 6% over a three-year period from the autumn of 2003.

Exercise of the stock options was subject to the holder being in continuing employment at the exercise date. No other vesting conditions applied.

Accordingly, in the period before 1 July 2004, IC Companys only had equity-settled stock option and warrant plans that were granted before 7 November 2002. In accordance with the transitional provisions in IFRS 1 and IFRS 2, the recognition and measurement provisions in IFRS 2 have not been applied to these share- based payment plans, which have all been settled at 30 June 2006.

Specification of outstanding stock options

Other Number of Average exer- Executive Board executives options cise price per (no. of options) (no. of options) in total option (DKK)

Outstanding at 1 July 2004 0 59,775 59,775 97.0 Exercised 0 (36,400) (36,400) 97.0 Issued in April 2005 200,000 0 200,000 156.1 Lapsed 0 (5,475) (5,475) 97.0 Outstanding at 30 June 2005 200,000 17,900 217,900 151.2 Exercised 0 (6,100) (6,100) 97.0 Lapsed 0 (11,800) (11,800) 97.0 Outstanding at 30 June 2006 200,000 0 200,000 163.85

Number of options that are

Company’s Annual Report from the autumn of 2006 to the autumn of 2010. The overall plan can be exercised with 1/5 in each of the years.

In none of the stock option plans has it been possible to settle the options by paying the difference in cash.

Specification of outstanding warrants:

Other Number of Average exer- Executive Board executives options cise price per (no. of warrants) (no. of warrants) in total warrant (DKK)

Outstanding at 1 July 2004 11,400 529,344 540,744 68.1 Reclassification 21,133 (21,133) 0 76.5 Exercised (12,800) (62,000) (74,800) 39.5 Lapsed (6,667) (195,583) (202,250) 74.0 Issued 0 365,000 365,000 156.1 Outstanding at 30 June 2005 13,066 615,628 628,694 120.4 Exercised (13,066) (250,628) (263,694) 71.1

Lapsed regarding program of April 2005 0 (30,000) (30,000) 156.1

Issued in May 2006 0 65,000 65,000 384.3

Outstanding at 30 June 2006 0 400,000 400,000 199.1

Number of warrants that are

exercisable at 30 June 2006 0 0 0

Year of Value Exercise price Exercise

issue Outstanding DKK million per warrant (DKK) period Other executives 2005 335,000 57.3 154,5 + 5% pa. 01.10.06 - 31.10.08

Other executives 2006 65,000 2.7 382,7 + 5% pa. 01.10.07 - 31.10.09

Total warrants 400,000 60.0

The average market price of options exercised in 2005/06 was DKK 265.7.

In 2005/06, the fair value of the warrants recognised in the consolidated income statement amounted to DKK 3.0 million (2004/05: DKK 0.6 million). In 2005/06, the fair value of the warrants recognised in the Parent Company income statement amounted to DKK 1.9 million (2004/05: DKK 0.5 million).

The computation of fair values is based on the Black & Scholes model. The applied assumptions, which are based on actual market conditions, are as follows:

2005/06 2004/05

Expected volatility 30.7% 25%

Expected dividend per share 1.09% -

Risk-free interest rate (based on danish government bonds with similar maturity) 3,6% - 3,8% 2,6% - 2,8%

In the fair value calculation, the terms used are average expected terms.

The expected volatility is based on the volatility over the past year for the IC Companys share, compared with Management’s expectations.

of the market price at the grant date.

The fair value per share was DKK 144, and the total fair value of the discount of exercised warrants was DKK 23.5 million. The fair value has been recognised as an expense in staff costs in the consolidated income statement for 2004/05. In the Parent Company financial statements for 2004/05, the recognised expense amounted to DKK 13.2 million.