Slide 1: Qliro Group – Q4 Report
Qliro Group – Q4 Report Marcus Lindqvist, CEO February 5, 2019
Slide 2: Establishment of three independent listable companies
Establishment of three independent listable companies Financial services to A leading Nordic A leading online Nordic consumers and merchants online marketplace fashion brand Focus on external Focus on accelerating Focus on own brands and merchants and scalability transformation profitable growth Sep
Slide 3: Qliro Financial Services continues to grow
Qliro Financial Services continues to grow Loan book expansion with low acquisition costs SEKm Q4 18 Q4 17 Δ Total operating income increased 26%, driven by increased lending to the public Total operating income 81.8 64.9 26% Total operating expense increased 31%, following expansion of Total op
Slide 4: Loan book above SEK 1.5 billion
Loan book above SEK 1.5 billion Focus on expansion Machine learning applied to internal and external data for real-time credit scoring Continued ramp-up of personal loans to Net lending, SEKm SEK 317m Loans to the public, Sales financing Loans to the public, Personal loans 1,530 Interest cost
Slide 5: CDON Marketplace benefits from transformation
CDON Marketplace benefits from transformation Focus on external merchants SEKm Q4 18 Q4 17 Δ Proven model with over 1,500 External GMV development 228.5 190.8 20% merchants e.g. Adlibris, VidaXL, CAGR 15’-18’ GMV external Furniturebox, Ellos, Cervera and Total GMV 760.6 903.7 -16% Trademax Net sal
Slide 6: Transformation to higher scalability and lower risk
Transformation to higher scalability and lower risk Marketplace and drop shipment model enables growth with less capital Total gross merchandize value Traditional CDON Drop shipment Marketplace SEKm +36% SALES 865 753 276 468 253 PLATFORM 118 298 309 500 589 107 80 350 229 191 PRICING Merchant 6% 11
Slide 7: Nelly reports lower growth in challenging market
Nelly reports lower growth in challenging market High campaign activity Growth initiatives increased number of customer with 11% and SEKm Q4 18 Q4 17 average order with 10% Net Sales 402.9 400.3 Weaker demand with generally high campaign activity EBITDA 19.2 39.5 Strong Singles’ Day, but weake
Slide 8: Qliro Financial Services
Qliro Financial Services Carolina Brandtman, CEO 8
Slide 9: Qliro – a payment company founded for retailers by retailers
Qliro – a payment company founded for retailers by retailers HISTORY PAYMENT VOLUMES (SEK MILLION) 2014 Launched in Sweden +23% 4 940 3 182 3 962 2 630 Building the business, including expansion 2015 to Finland and Denmark 2015 2016 2017 2018 Preparation for KMB license 2016 LOAN BOOK VOLUMES (SEK M
Slide 10: Payment offering – turn payments from cost to revenue for retailers
Payment offering – turn payments from cost to revenue for retailers PRODUCT COMPETITIVE EDGE Full checkout solution or integration of Offering. A superior commercial proposition, selected Pay After Delivery methods allowing merchants to turn payments from (Invoice, Account, Part Payment Campaign
Slide 11: A growing consumer footprint in the Nordic payment space
A growing consumer footprint in the Nordic payment space Country, Number of unique customers (all time) Pay After Delivery (PAD) Qliro App Savings accounts 28% >40% 195k of Swedish online of Swedish online Swedish customers Consumer loans consumers are familiar population already in active users of
Slide 12: First step: Leveraging e-commerce to build personal loan book
First step: Leveraging e-commerce to build personal loan book END OF PERIOD CONSUMER LOANS LOAN BOOK, SEK MILLION Brand building and customer interaction through proprietary channels and touchpoints 317 245 187 Low-cost acquisition engine utilizing machine learning to increase customer targeting
Slide 13: Priorities
Priorities Grow base of merchants Grow loan book Leverage scalable position Attractive model that turns Loan book is the key driver to On the verge of proving payments into a revenue growth and profitability scalable business model with stream for merchants the right foundation to grow Grows
Slide 14: Anna Ullman Sersé, CEO
Anna Ullman Sersé, CEO qlirogroup.com
Slide 15: Nelly – the online fashion thought leader of Scandinavia
Nelly – the online fashion thought leader of Scandinavia Net Sales and EBITDA (SEKm) → A number one inspiration position among online NET SALES EBITDA retailers 1.197 1.244 1.310 1.391 60 121 57 2018 → A leading driver of fashion trends among young -12 2015 2016 2017 2018 women in Scandinavia Share
Slide 16: Our customer loves us because we inspire and engage them with an attractive assortment
Our customer loves us because we inspire and engage them with an attractive assortment Value proposition for our inspiration platform Why CUSTOMERS choose us No 1 online store for inspiration Young customers use online stores for inspiration We are the most popular online store for inspirations
Slide 17: The customers comes to us for inspiration and to find out what to buy
The customers comes to us for inspiration and to find out what to buy Online stores the go-to channel for inspiration We are the most popular destination for inspiration for our target group Where customers search for shopping inspiration* Top brands visited on weekly basis for those who use online
Slide 18: We enable and inspire our customers to shop from a curated assortment
We enable and inspire our customers to shop from a curated assortment Inspiration platform around the latest trends 3 Nelly’s high market penetration and broad reach using all Early and precise The Nelly inspiration platform relevant channels makes it trend catchers has created the success of enabli
Slide 19: In 4 out of 5 markets Nelly has above 50% of the target group
In 4 out of 5 markets Nelly has above 50% of the target group in the data base UP TO 80% OF POPULATION UP TO 90% OF POPULATION UP TO 60% OF POPULATION UP TO 60% OF POPULATION UP TO 20% OF POPULATION IN DATABASE IN DATABASE IN DATABASE IN DATABASE IN DATABASE CUSTOMERS CUSTOMERS CUSTOMERS CUSTOMERS C
Slide 20: Nelly.com continue to innovate in campaigns and create customer engagement
Nelly.com continue to innovate in campaigns and create customer engagement Our strength is to secure inspiring content with wide spread and high engagement for our campaigns Innovation in brand building • Nelly continuously innovate brand building and campaigns • 46 campaigns during the year and wit
Slide 21: Priorities
Priorities CURATED ASSORTMENT PROFITABLE GROWTH Best in class selection of products Profitable growth by reaching new and latest commercial trends for customers and new channels young people CUSTOMER EXPERIENCE OPERATIONAL EXCELLENCE Excellent customer experience and Operational excellence with ongo
Slide 22: Financials
Financials Mathias Pedersen, CFO 22 22
Slide 23: Consolidated income statement
Consolidated income statement Decrease in net sales, increase in gross margin SEKm Q4 18 Q4 17 • Net sales decreased to SEK 1,038m (SEK 1,200m) in the quarter Net sales 1 037.7 1 199.8 • Transformation in CDON had a negative impact on Gross profit 238.2 261.8 net sales and a positive effect on gross
Slide 24: E-commerce cash flow
E-commerce cash flow Seasonally strong quarter -18 -10 -30 670 • Profitable quarter with positive Ebitda 102 • Inventory decreased during the peak season 37 • Accounts payables increased, with 38 551 invoices due in January 2019 • Capex of SEK 10m mainly related to CDON’s continued investment in aut
Slide 25: E-commerce balance sheet
E-commerce balance sheet Bond redemption reduce debt with SEK 250m SEKm 1,508 1,508 • E-commerce had SEK 420m in net cash (SEK 670m in liquid funds 355 Accounts payable and SEK 250m in outstanding bonds) Cash 670 • Early redemption of bond to reduce debt and cut interest cost with SEK 12m annually (
Slide 26: Qliro Financial Services balance sheet
Qliro Financial Services balance sheet Well positioned for further expansion SEKm 1,935 1,935 19 22 6 • Sales finance loan book grew to SEK 1,213m and personal Cash 89 Accounts payable Other receivables 172 Other liabilities loans to SEK 317m Current investments • SEK 197m held as liquidity reserve,
Slide 27: Questions and Answers
Questions and Answers Marcus Lindqvist, CEO 27 27
Slide 28: THANK YOU
THANK YOU Next report released April 17 Nasdaq symbol QLRO Qliro Group AB (publ.) Box 195 25 SE-104 32 Stockholm +46 (0)10 703 20 00 office@qlirogroup.com