Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Qliro Group — Q4 2019 Earnings Presentation
17 slides from Nelly Group Ab's earnings presentation, Feb 5, 2020
Slide 1: Qliro Group – Q4 Report
Qliro Group – Q4 Report Marcus Lindqvist, CEO February 5, 2020
Slide 2: Split up of the group to be completed first half 2020
Split up of the group to be completed first half 2020 • To be listed on Nasdaq • Listing on First North • Focus on Nordic market • New targets set • Leading Nordic marketplace • Actions to reduce inventory • New share issue at listing • Profitable and scalable • Organizational adjustment • Qliro Gro
Slide 3: Qliro Financial Services – a tech company in financial services
Qliro Financial Services – a tech company in financial services Products provided by Partners IPO in the first half of 2020 Products provided by Qliro via Qliro’s Banking platform ➔ Payment solutions with strong merchant and consumer value on a truly modern Personal Other savings products platform l
Slide 4: Prepared for listing on the Nasdaq Stockholm main market
Prepared for listing on the Nasdaq Stockholm main market Strong growth in loan book ➔ Loan book grew 39%, driven by both PAD and personal SEKm loans Q4 19 Q4 18 Δ Total operating income 87.5 80.8 8% ➔ Business volume grew 2%, affected partly by CDON’s transformation and onboarding of new signed merc
Slide 5: Loan book reached SEK ~2.1 billion
Loan book reached SEK ~2.1 billion Grown an average 42 percent per annum during last four years ➔ Continued ramp-up of personal loans to SEK 727m ➔ Interest cost for loan book amounted to SEK 8.5m ➔ Interest revenue from loan book amounted to SEK 57m, reflecting a large interest rate spread ➔ An e-c
Slide 6: Qliro AB’s new financial targets
Qliro AB’s new financial targets Financial targets Assessment 2020 Growth Credit Quality In the medium term, Qliro AB:s target is to achieve an income Qliro AB shall maintain a strong asset quality as the business continues to growth of 20-25 percent on average per annum grow Cost For the financial
Slide 7: Marketplaces increasingly dominate global e-commerce - CDON being #1 of the Nordics
Marketplaces increasingly dominate global e-commerce - CDON being #1 of the Nordics Growing quickly with healthy profitability ➔ Marketplaces have over +50% of global online sales, but Nordic ➔ Unique technology infrastructure with high degree of automation market still untapped enabler of profitabl
Slide 8: CDON showed significant growth and profitability
CDON showed significant growth and profitability Profitable before depreciations for Q4 and full year SEKm Q4 19 Q4 18 Δ ➔ External merchants increased sales 75% and commission income 39% External GMV development External merchants 399.5 228.5 75% CAGR 15’-19’ ➔ Gross margin increased with 4.5 Total
Slide 9: CDON’s has great momentum
CDON’s has great momentum External sales, SEKm Share external & drop ship Number of visits, ’000 +63% +18 p.p. +1% 958 59% 95 640 96 194 589 41% 2018 2019 2018 2019 2018 2019 Inventory, SEKm Gross margin, percentage EBITDA, SEKm -41% +6 p.p. +33 177 18.8% 15 13.2% 104 -19 2018 2019 2018 2019 2018 20
Slide 10: Nelly well positioned to take advantage of
Nelly well positioned to take advantage of The most popular fashion brand in target group in Sweden and Norway No 1 online store for inspiration ✓ The most popular online store for inspirations ✓ Strong Nordic reach as ~20 % of 15-19 year old visit us weekly ✓ Nelly has the power to create the trend
Slide 11: Nelly – focus on the Nordics
Nelly – focus on the Nordics Action program to improve profitability SEKm Q4 19 Q4 18 Δ ➔ Actions reduced inventory by 20% but impacted product margin Net Sales 399.4 402.9 -1% ➔ Digitalized return process is successful and the return ratio Gross profit 75.0 107.3 -30% decreased with 1 percentage po
Slide 12: Financials
Financials Mathias Pedersen, CFO 12 12
Slide 13: Consolidated income statement (including IFRS 16)
Consolidated income statement (including IFRS 16) Decrease in net sales and gross margin • Net sales decreased to SEK 919m (SEK 1,047m) in the quarter as growth in Qliro was SEKm Q4 19 Q4 18 offset by the effects of CDON’s continued phaseout of own inventory-based sales Net sales 919.2 1047.0 • Exch
Slide 14: E-commerce cash flow
E-commerce cash flow Seasonally strong cash flow -19 • Net inventory decreased with SEK 45m -9 during the quarter as Nelly actively -43 314 reduced its inventory during Q4, while CDON’s increased slightly 205 • Other operating net working capital decreased SEK 205m, following the seasonal pattern wh
Slide 15: E-commerce balance sheet
E-commerce balance sheet SEKm All equity financed 1,084 1,084 Cash 314 304 Accounts payable • E-commerce net cash amounted to SEK 314 • CDON’s continued transformation within the Accounts receivables 41 marketplace model decreased its need for Other receivables 121 inventory with 41% compared to las
Slide 16: Qliro AB balance sheet
Qliro AB balance sheet Focus on further expansion SEKm 2,881 2,881 13 128 Accounts payable • Sales finance loan book amounted to SEK 1,343m Cash 240 Other receivables 81 Other liabilities and personal loans to SEK 727m Current investments 255 • Public deposits increased with 88% to SEK 1,819m • SEK
Slide 17: THANK YOU
THANK YOU Next report released April 21 Nasdaq symbol QLRO Qliro Group AB (publ.) Box 195 25 SE-104 32 Stockholm +46 (0)10 703 20 00 ir@qlirogroup.com