Slide 1: Financial Results Second Quarter 2018
Financial Results Second Quarter 2018 Marcus Lindqvist, CEO July 13
Slide 2: New strategic direction to focus on three independent companies
New strategic direction to focus on three independent companies Growing market and favorable trends driven by online retail shift 7% Extend offering of financial services Transform to a leading Nordic Drive profitable growth as a leading to consumers and merchants online marketplace online Nordic fa
Slide 3: Qliro Financial Services increased profitability
Qliro Financial Services increased profitability Proven scalability and low acquisition costs • Total operating income increased 36%, SEKm Q2 18 Q2 17 Δ Total operating income 71.2 52.5 36% driven by increased lending to the public • Total operating expense increased 27%, +36% 4.7 Total operating Mi
Slide 4: Loan book beyond one billion SEK
Loan book beyond one billion SEK Ready for continued cost-efficient expansion • Machine learning applied to internal and external data for real-time credit scoring Net lending, SEKm Loans to the public, Sales financing • Personal loans nearly doubled to SEK 187m Loans to the public, Personal loans 1
Slide 5: Leveraging e-commerce to build personal loan book
Leveraging e-commerce to build personal loan book End of period consumer loans loan book (SEKm) • Brand building and customer interaction through proprietary 187 channels and touchpoints 109 61 • Low-cost acquisition engine utilizing machine learning to increase customer targeting accuracy Accumulat
Slide 6: CDON Marketplace accelerated transformation
CDON Marketplace accelerated transformation Double digit external merchant sales growth • Proven model with over 1500 merchants SEKm Δ 1.8 Q2 18 Q2 17 GMV external 124.8 108.6 15% e.g. Adlibris, VidaXL, Furniturebox, Ellos, Cervera and Trademax ~20 Million Million Total GMV 448.1 484.6 -8% • Externa
Slide 7: Transformation to higher scalability and lower risk
Transformation to higher scalability and lower risk Marketplace model enables growth with less capital SEKm 827 753 Traditional Drop shipment Marketplace 253 298 CDON 468 118 Sales 500 529 182 196 350 71 71 111 125 Platform 2016 2017 LTM Q1 18’ Q2 18’ Pricing Merchant 6% 11% 13% 15% 16% Logistics Me
Slide 8: Nelly achieves strong profitable growth
Nelly achieves strong profitable growth Back on track towards financial plan • Growth initiatives increased number of visits with 8%, number of orders with SEKm Q2 18 Q2 17 Δ 14% and number of customer with 11% Net Sales 403.1 364.8 11% • Net sales increased 11%, resulting in highest growth in three
Slide 9: Increased share of own brands with higher product margins
Increased share of own brands with higher product margins Geared for profitable growth Product margin, % LTM 55 Share, private label sales LTM 100 50% 51% 51% 50% 50 48% 80 45% 44% 44% 45% 46% 45% 46% 60 • Own brands key driver for product margin 45 44% 42% 43% 42% 40% 40% 40 improvements since Q3 2
Slide 10: Financials
Financials Mathias Pedersen, CFO 10 10
Slide 11: Consolidated income statement
Consolidated income statement Q2 results affected by events SEKm Q2 18 Q2 17 • Net sales increased to SEK 807m (SEK 805m) in the quarter, slightly boosted by exchange rate Net sales 807.0 805.3 fluctuations Gross profit 202.1 194.4 • Tax and interest cost for CDON Alandia for the fiscal year 2012 of
Slide 12: E-commerce cash flow positive in Q2 as working capital decreased
E-commerce cash flow positive in Q2 as working capital decreased -8 38 639 -40 • CDON Alandia Tax loss was pre-paid -12 19 34 and therefore cash-flow neutral • Inventory decreased in both Nelly (SEK -37m) and CDON (SEK -14m) 574 52 during the quarter -18 • Capex of SEK 8m mainly related to CDON’s co
Slide 13: E-commerce balance sheet
E-commerce balance sheet Financial flexibility Balance sheet, June 2018 SEKm 1,439 1,439 • E-commerce had SEK 389m in net cash (SEK 222 Accounts payable 639m in liquid funds and SEK 250m in outstanding bonds) Cash 639 362 Other operating debt • Net working capital was low and amounted to SEK -65m 4
Slide 14: Qliro Financial Services balance sheet
Qliro Financial Services balance sheet Well positioned for further expansion Balance sheet, June 2018 SEKm 1,552 1,552 • Sales finance credits grew to SEK 1,025m and personal 11 8 7 Cash 93 Accounts payable loans to SEK 187m Other receivables Other operating debt • SEK 165m held in Swedish municipal
Slide 15: Summary
Summary Marcus Lindqvist, CEO 15 15
Slide 16: Value creation in three fully independent operations
Value creation in three fully independent operations Second quarter Focus LOAN BOOK ✓ New strategic direction EXPANSION Qliro Financial Services is ready for loan book announced – focus on three expansion using leverage on e-commerce volumes fully independent companies GEOGRAPHICAL and scalability R
Slide 17: THANK YOU
THANK YOU Next report released October 19 Nasdaq symbol QLRO follow us on twitter @qlirogroup Qliro Group AB (publ.) Box 195 25 SE-104 32 Stockholm +46 (0)10 703 20 00 office@qlirogroup.com