Nelly Group Ab · OMXSTO:NELLY

Nelly Group Ab — CDON Group — Investor Day (February 2011)

14 slides from Nelly Group Ab's investor day presentation, Feb 23, 2011

  1. Slide 1: Kinnevik Capital Markets Day

    Kinnevik!Capital!Markets!Day 23!February!2011 Mikael!Olander,!President!&!CEO CDON!Group!AB!(NASDAQ!OMX!Stockholm:!CDON)!

  2. Slide 2: CDON Group at a Glance

    CDON!Group!at!a!Glance Market!leader!in!fast!growing!Nordic!e"commerce!market Entertainment Fashion Sports!&!Health ! CDON!Group!is!the!leading!Nordic!B2C!e"commerce!group!with!SEK!2.2!billion!of! sales!and!industry!leading!profit!margins ! CDON!Group!operates!9!internet!stores!in!the!Entertainment,

  3. Slide 3: Business Development Strategy

    Business!Development!Strategy + Acquisitions!and Start"ups ! Relentless!pace!&!proven!expertise – 3!companies!acquired!in!2007 + Geographical Expansion ! Pan"Nordic!roll"out!of!current!stores – 1!company!acquired!in!2008 – 2!companies!acquired!&!1! started!up!in!2010 – 1!company!acquired!in!2011 ! T

  4. Slide 4: Timeline of Key Events

    Timeline!of!Key!Events Acquisition!of Launch!of 2011 2,400 Acquisition!of Acquisition!of Acquisition!of First!Nordic Mobile!phones! 2,000 music!e"store and!!consumer Computer! electronics! DVDs games Listing!at Sales!(SEKm)!!! 1,600 Swedish! Mp3!bookstore! book!store Roll"out Integration!of!BookPlus

  5. Slide 5: Expanding Geographical Footprint

    Expanding!Geographical!Footprint Nordic!roll"outs!with!test!launches!in!other!European!markets Sweden Norway Finland Denmark Germany Netherlands Launch Launch Launch Launch 1999 1999 2000 1999 Test! Test! Launch Launch Launch Launch Launch Launch! 2004 2008 2008 2008 2010 2010 Launch Launch Launch L

  6. Slide 6: Track Record of Sustained Growth

    Track!Record!of!Sustained!Growth 2!400 Sales!(SEK!millions) 2!000 1!600 1!200 800 400 0 2006 2007 2008 2009 2010 Entertainment Fashion Sports!&!Health Sales!by!segment Sales!by!geography FY!2009 FY!2010 FY!2009 FY!2010 6

  7. Slide 7: Full Year 2010 Financial Performance

    Full!Year!2010!Financial!Performance Sales!of!over!SEK!2!billion!for!the!first!time Operating!Development Website!visits!(’000) Orders!(’000) 120!000 5!000 +30!% 4!500 +20!% 100!000 4!000 80!000 3!500 3!000 60!000 2!500 2!000 40!000 1!500 20!000 1!000 500 0 0 FY!2009 FY!2010 FY!2009 FY!2010 Entertai

  8. Slide 8: Market Opportunity

    Market!Opportunity Migration!of!retail!from!traditional!high!street!outlets!to! innovative!online!stores The!US!Retail!Market The!US!Online!Retail!Market Source:!US!Census!Bureau Source:!US!Census!Bureau The!Swedish!Retail!Market The!Swedish!Online!Retail!Market Source:!HUI Source:!HUI 8

  9. Slide 9: Consumer Behavior is Changing

    Consumer!Behavior!is!Changing Convenience!and!broad!assortment!increasing!in!importance Reasons!for!Distance!Shopping!in!Sweden 31% 25% 24% 18% 19% 12% 9% 9% 2005 2009 2005 2009 2005 2009 2005 2009 More!convenient Cheaper Wider!product!range Save!time Source:!Posten!Norden!(“Distanshandeln!idag”) No

  10. Slide 10: The Platform for Growth

    The!Platform!for!Growth Growth!platform!has!been! developed!over!12!years!to!enable! rapid!scaling!of!newly!acquired!or! established!brands!– Heppo.com,! Lekmer.com!and!RUM21.se!to! follow!success!of!CDON.COM,! Nelly.com!and!Gymgrossisten.com CDON.COM!central!warehouse!in!Borås,!Sweden 10

  11. Slide 11: Seizing the Market Opportunity

    Seizing!the!Market!Opportunity ! Market!development!is!accelerating!!with!Europe! gradually!catching!up!with!the!US! ! CDON!Group!has!the!required!platform,!financial! resources,!market!knowledge!&!skills! ! Need!to!be!number!1!or!2!in!each!segment!in! each!geography!to!have!scale!to!maximize!return

  12. Slide 12: Growing the Brand Portfolio

    Growing!the!Brand!Portfolio Major!Brands Low!risk!and!high! return!investments!in! expansion!of!major! current!brands!" CDON,!Nelly!and! Gymgrossisten Emerging!brands Ramping!up!invest" ments!in!second!tier! of!emerging!new! brands!expected!!to! be!major!brands!of! the!future!" Lekmer,! Heppo!and!Ru

  13. Slide 13: Summary

    Summary Objectives ! Generate!sustainable!and!long!term!shareholder!value ! Continue!to!grow!organically!at!least!in!line!with!the!growth!of!each!of!the!Group’s! operating!market!segments!in!each!operating!territory ! Generate!margins!that!are!in!line!or!above!the!average!of!the!Group’s!competitors!

  14. Slide 14: For further information, please visit www.cdongroup.com

    For!further!information,!please!visit www.cdongroup.com!or!contact: CDON!Group!Investor!Relations +46!(0)!70!080!76!68! ir@cdongroup.com

CDON Group — Investor Day (February 2011) on 6ix