Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Qliro Group — Q1 2018 Earnings Presentation
20 slides from Nelly Group Ab's earnings presentation, Apr 20, 2018
Slide 1: Financial Results First Quarter 2018
Financial Results First Quarter 2018 Marcus Lindqvist, CEO April 20
Slide 2: Value creation in three well-positioned business areas
Value creation in three well-positioned business areas 51% 7% Transform into a leading Nordic online marketplace Extend offering of financial 3.0 6.4 services to new Million Million customers orders consumers and merchants 1,500 200 Drive profitable growth as a Merchants Million visits leading onlin
Slide 3: Transformation and returns affected result
Transformation and returns affected result Satisfied with Qliro and transformation in CDON while Nelly is below expectations • Net sales increased 2 percent to SEK 716m for the quarter Reorganization to achieve efficiency • Gross profit amounted to SEK 135m (SEK140m) Ramp-up of marketplace and launc
Slide 4: Business Update
Business Update Marcus Lindqvist, CEO 4 4
Slide 5: Qliro Financial Services continued to grow
Qliro Financial Services continued to grow Building a digital financial offering with low customer acquisition costs • Total operating income increased 38% 189 Q1 18 Q1 17 Change Total operating income 68.1 49.2 38% • Total operating expense increased 29%, Employees 4.4 indicating scalability in bus
Slide 6: Loan book beyond one billion SEK
Loan book beyond one billion SEK Ready for continued cost-efficient expansion • Internal and external data used in real-time for prudent credit checks, identifying consumers with a reliable credit history Net lending, SEKm Loans to the public, Sales financing 1,055 • Nearly doubled personal loans to
Slide 7: Qliro Financial Services leverages e-commerce
Qliro Financial Services leverages e-commerce Increased revenues through extended customer relationships • The underlying e-commerce volumes increases Index with the growth in CDON Marketplace, Nelly, our external merchants and with new external merchants • However, the loan book increases even fast
Slide 8: CDON Marketplace in transformation
CDON Marketplace in transformation Initiatives impacted profitability Q1 18 Q1 17 Change • Proven model with over 1500 merchants e.g. GMV external 111.2 98.6 13% Adlibris, VidaXL, Furniturebox and recently additions like Ellos, Cervera and Trademax 8% 1.8 Million Total GMV 476.9 479.6 -1% • External
Slide 9: CDON launched tailor-made offering to businesses
CDON launched tailor-made offering to businesses Tapping into a substantial new market opportunity • Tailor-made offering of IT and office supplies to companies • CDON Marketplace leverages its already 9300 active SME customers • First launch of new automated IT- platform, later to be used also for
Slide 10: Transformation to higher scalability and lower risk
Transformation to higher scalability and lower risk Marketplace model enables growth with less capital Traditional Dropshipment Marketplace SEKm CDON 639 +64% p.a. 139 Sales 382 32 224 500 Platform 146 152 350 41 111 Pricing Merchant 2014 2015 2016 2017 Q1 18’ Logistics Merchant Merchant 7% 2% 6% 9%
Slide 11: Growing customer base
Growing customer base Adding new customers generates profit over time New customers (‘000) Active customers LTM (‘000) Profit contribution development per new customer Accumulated profit after fulfillment, distribution and marketing contribution to CDON +12% +7% 113 1 800 101 1 683 Year 1 Year 2 Yea
Slide 12: Accelerated marketing increased orders
Accelerated marketing increased orders Sales and profitability below expectations Q1 18 Q1 17 Change • Acceleration of marketing increased the number of visits with Net Sales 276.0 267.1 3% 15%, the number of orders with 18% and the order value with 15% Ebitda -14.9 12.3 • Net sales growth limited t
Slide 13: Nelly has a strong brand and promising unit economics
Nelly has a strong brand and promising unit economics Innovative use of digital marketing creates a loyal fan base • Strong position with own brands and a well-curated portfolio of complementary external brands 46% 28.2 • One of the Nordics top brand in fashion online among young consumers Share of
Slide 14: Financials
Financials Mathias Pedersen, CFO 14 14
Slide 15: E-commerce cash flow mainly a consequence of fourth quarter peak
E-commerce cash flow mainly a consequence of fourth quarter peak SEKm 574 554 • Accounts payable decreased as suppliers -52 43 were paid following the Q4 peak -1 • In addition, other current liabilities -213 decreased as VAT, mainly related to Q4, 374 was paid • Inventory largely unchanged, as the i
Slide 16: E-commerce balance sheet
E-commerce balance sheet Solid financial position Balance sheet, March 2018 SEKm 1,531 1,531 • E-commerce had SEK 324m in net cash (SEK 574m in liquid funds and SEK 250m in 239 Accounts payable outstanding bonds) Cash 574 • Net working capital amounted to SEK 136m 303 Other operating debt • CDON tra
Slide 17: Qliro Financial Services balance sheet
Qliro Financial Services balance sheet Well positioned for further growth Balance sheet, March 2018 SEKm • Loans to the public of SEK 1,019m incl. SEK 109m of 1,346 1,346 personal loans Cash 28 Operating debt 8 72 Receivables 4 • Liquidity reserve of SEK 169m, incl. SEK 140m held in Other liabilitie
Slide 18: Summary
Summary Marcus Lindqvist, CEO 18 18
Slide 19: Value creation in three business areas
Value creation in three business areas Positioned to reach financial targets First Quarter Focus • Transformation and returns affected result • Qliro Financial Services is ready for loan book expansion using leverage on e-commerce • Divestment of HSNG led to inflow of SEK volumes and scalability in
Slide 20: THANK YOU
THANK YOU Next report released July 13 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