Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — DNB Online Trend Luncheon (May 2022)
12 slides from Nelly Group Ab's conference presentation, May 23, 2022
Slide 1: Nelly Group AB Investor Presentation
Nelly Group AB INVESTOR PRESENTATION DNB Online Trend Luncheon 23 May 2022
Slide 2: An integral part of the young woman's everyday life
An integral part of the young woman’s everyday life Founded in 2004 in Borås Built through influencer marketing Online only 2.1M 1.2M A community of Nordic consumers MEMBERS ON NELLY.COM ACTIVE Making 1.2 million customers CUSTOMERS look & feel fab 1.3M ~20% FOLLOWERS ON OF TARGET SOCIAL MEDIA GROUP
Slide 3: Our core target group is represented by "Denise"
Hair Beauty Our core target group is Jewelry represented by “Denise” Fashion She shops 18 times a year for her appearance Fashion Bag Fashion Intimate Nails Phone case
Slide 4: Nelly has exited non-Nordic markets and prioritises improving profitability before growth
Nelly has exited non-Nordic markets and prioritises improving profitability before growth Nelly Group Net Revenue & sessions -1% Nordic focus 1.5 +5% 1.5 150 • Non-Nordic markets exited in 1.4 1.4 1.4 1.4 early 2020 1.3 1.2 121 • Focus on a narrower 15-25 year 1.2 116 117 old Nordic customer 108 110
Slide 5: Nelly focuses on improving gross margin by increasing own brand sales
Nelly focuses on improving gross margin by increasing own brand sales and disciplined purchasing to avoid clearance sales Nelly Group Gross margin and own brand sales [%] >50% Fashion players 52 with high share of own brands 51 50 49 • Clear focus on increasing own 48 brand share of sales should be
Slide 6: Automated warehouse expected to decrease fulfilment & distribution cost share of sales
Automated warehouse expected to decrease fulfilment & distribution cost share of sales vs previous manual warehouse Nelly Group fulfilment & distribution cost as a share of Net Revenue [%] • Successful warehouse 20 automation project concluded in Q3 2021, annual cost-saving of SEK 35m targeted (2020
Slide 7: Marketing cost share of sales has increased; Nelly seeking to maximise organic traffic
Marketing cost share of sales has increased compared to pre-pandemic levels and Nelly is seeking to maximise organic traffic Nelly Group marketing cost as a share of Net Revenue [%] 13 12 • Invest in a community powered 11 brand by growing upper funnel share of marketing investment 10 • Innovate and
Slide 8: Nelly focuses on reducing admin and other operating cost
Nelly focuses on reducing admin and other operating cost to improve operating margin Nelly Group Administrative and other operating expenses [SEK million] 77 74 71 67 • During 2020 Nelly executed 66 62 65 64 two redundancy notices 59 • Cost reduction after integrating previous central functions in N
Slide 9: Nelly focuses on improving operating margin by improving gross margin and lowering costs
Nelly focuses on improving operating margin by improving gross margin and lowering operating costs Q1 22 Nelly Group [SEKm] 2020 2021 LTM Net revenue 1 394 1 428 1405 Focus on improving gross margin by driving own brand sales Gross profit 612 639 746 Gross margin 43.9% 44.7% 44.8% Fulfilment and dis
Slide 10: Thanks!
Thanks!
Slide 11: Shaping a sound and sustainable Nelly, with her
Shaping a sound and sustainable Nelly, with her Empower Respect Fair & femininity the planet Equal Fortify self-esteem among Go circular Be responsible young women We want to reduce our climate We want to create a safe We want to create a community impact and manage our and sound environment where t
Slide 12: Our overall sustainability goals
OUR OVERALL SUSTAINABILITY GOALS Sustainable targets 2021 reached 2022 2023 2025 2030 Nelly’s own brand Nelly will achieve 50% of textile Emissions of products will only be net zero in its own products will be greenhouse gases in made by externally operations made of more the value chain will inspec