Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — CDON Group — Q3 2011 Earnings Presentation
16 slides from Nelly Group Ab's earnings presentation, Oct 17, 2011
Slide 1: Financial Results for the Third Quarter and First Nine Months 2011
Financial Results for the Third Quarter and First Nine Months 2011 17 October 2011
Slide 2: 61% year on year third quarter sales growth
61% year on year third quarter sales growth 2 CDON Group’s strongest Q3 ever – with sales & EBIT reaching new record levels Operating development • Net sales up 61% y/y to SEK 826.4 (513.7) mn 900 826 10.0% • Net sales up 62% at constant exchange rates 800 700 8.0% • Gross profit up 46.7% y/y to SEK
Slide 3: First Nine Months highlights
First Nine Months highlights 3 Continued execution of strategy to develop our operations, acquire and launch new online stores and to expand into new markets, while maintaining profitability • Net sales up 45% y/y to SEK 2,087.3 mn (1,441.1) Operating development • Net sales up 49% at constant excha
Slide 4: Consistent revenue growth with healthy profitability levels
Consistent revenue growth with healthy profitability levels 4 200 2,800 180 2,400 160 Sales (SEK million) EBIT (SEK million) 140 2,000 120 1,600 100 1,200 80 60 800 40 400 20 0 0 2006 2007 2008 2009 2010 LTM Q3 Entertainment Fashion Sports & Health Home EBIT Third quarter sales by segment YTD sales
Slide 5: Business Profile & Performance
Business Profile & Performance 5
Slide 6: Entertainment
Entertainment 6 31% year on year sales growth in Q3 & 6% operating margin, with ongoing & accelerated shift towards more sustainable product categories • Sales up 31% y/y in Q3 & up 24% for YTD Operating development • Media products grew in the third quarter despite the fact that the market for thes
Slide 7: Fashion
Fashion 7 42% year on year revenue growth in Q3 with a new start-up launched during the quarter, intensified geographical expansion and broadened product offering Operating development • Sales increased by 42% y/y in Q3 & up 53% YTD • Launch of a new business - Members.com 500 456 10.0% • Launch of
Slide 8: Sports & Health
Sports & Health 8 28% year on year revenue growth with increased market shares Operating development • Sales up 28% y/y in Q3 & up 32% for YTD 300 280 15.0% • Market share gains for Gymgrossisten.com in all 280 260 12.7% 13.0% geographical markets during the third quarter 240 212 10.5% 11.0% 220 12.
Slide 9: Home & Garden
Home & Garden 9 Performing according to plan with increasing market shares • Home & Garden is a new business segment introduced in Q2 2011. It comprises internet stores Tretti.com & RUM21.com • The segment’s sales amounted to SEK 143.5 mn for Operating development Q3 & to SEK 194.9 mn for YTD • Pan-
Slide 10: Financial Performance & Position
Financial Performance & Position 10
Slide 11: Income statement
Income statement 11 • Net interest & other financial items of SEK -5.4 (-5.5) mn in Q3 & SEK -12.8 (-14.2) for YTD reflected: • The Group’s SEK 200 mn revolving credit facility and interests costs related to it • Interest costs related to the convertible bond issued in December 2010 • Tax expenses o
Slide 12: Cash Flow
Cash Flow 12 • Cash flow from operating activities before changes in working capital of SEK 30.9 (26.3) mn in Q3 & SEK 51.1 (81.9) mn for YTD • SEK 18.9 mn tax payment related to performance in 2010 • Cash flow to investing activities of SEK -10.3 (-1.6) mn in Q3 & SEK -336.3 (-8.6) mn for YTD • SEK
Slide 13: Financial Position
Financial Position 13 • Capital employed increased by SEK 371.5 mn y/y to SEK 766.9 mn as of 30 Sep 2011 • The acquisition of Tretti AB in June 2011 • Higher inventory levels due to increase of more inventory intensive Home & Garden and Fashion segments as proportions of total Group revenues as well
Slide 14: Strategy
Strategy 14 To become a leading e-commerce player in each of the Group’s operating market segments & territories + Acquisitions & Launches Rapid route to critical mass – 3 companies acquired in 2007 + Geographical Expansion Pan-Nordic roll-out of current stores – 1 company acquired in 2008 – 1 c
Slide 15: Summary
Summary 15 Objectives To generate sustainable and long term shareholder value To continue to grow organically at least in line with the growth of each of the Group’s operating market segments in each operating territory To continue to start-up or acquire new brands To generate margins that a
Slide 16: For further information, please visit www.cdongroup.com
16 For further information, please visit www.cdongroup.com or contact: CDON Group Investor Relations + 46 (0) 70 080 74 03 ir@cdongroup.com