Slide 1: Third Quarter and First Nine Months 2014
Third Quarter and First Nine Months 2014 The following presentation is not a prospectus. Its purpose is to serve as information regarding the announced rights issue in CDON Group AB (publ) ("CDON Group"). This presentation must not be made public, published or distributed, in whole or in part, direc
Slide 2: Change of Group name
Change of Group name Qliro Group cdongroup# 2
Slide 3: Rights issue of SEK 650 million to capture growth opportunities
Rights issue of SEK 650 million1 to capture growth opportunities 1 • Launch and roll-out of Qliro Payment Solution ~300 MSEK 2 • Expansion of subsidiaries, especially Nelly ~100 MSEK 3 • Strengthen balance sheet by early redemption of convertible bond ~250 MSEK Total: 650 MSEK • New transparent fina
Slide 4: Highlights
Highlights • Sales growth of 21% and a positive operating profit in Q3 • All segments showed sales growth • Strong growth of 30% within Nelly in Q3 • Launch of Qliro pilot test on Tretti.se • Launch of Gymsector.com EU-site 4
Slide 5: Financials
FINANCIALS cdongroup 5
Slide 6: Income Statement
Income Statement Excluding divested entities 2014 2013 2014 2013 • Net sales, excluding divested operations (SEK million) Q3 Q3 Jan-Sep Jan-Sep were up 21%. Net Sales 1,121.2 928.8 3,317.2 2,888.1 Gross profit 151.5 117.0 502.6 413.4 • Gross margin amounted to 13.5% (12.6%). Gross margin (%) 13.5% 1
Slide 7: Cash Flow
Cash Flow 2014 2013 2014 2013 • Cash flow from operating activities (SEK million) Q3 Q3 Jan-Sep Jan-Sep improved to SEK 4.3 (-15.2) million. Cash flow from operating activities 4.3 -15.2 9.6 -83.6 • Cash flow from operations decreased to Changes in working capital -102.0 29.8 -202.7 -193.0 SEK -97.7
Slide 8: Financial Position
Financial Position • Inventory levels increased by around 21% 2014 2013 (SEK million) 30-Sep 30-Sep to SEK 689.3 (569.5) million Total non-current assets 767.8 723.2 Inventories 689.3 569.5 • Cash and cash equivalents decreased by SEK 128.4 million in Q3, from SEK 230.1 Total receivables 189.4 170.9
Slide 9: New financial reporting and segments
New financial reporting and segments • In order to improve disclosure in the reporting, a number of new key ratios will be reported from the third quarter. • Additionally, the segment reporting is changed due to the new strategy. Segment sales distribution 9% • CDON.com and Lekmer will from now on b
Slide 10: Business Segments
BUSINESS SEGMENTS cdongroup 10
Slide 11: Nelly
Nelly • Sales increased by 30% in the third Q3 14 Q3 13 Growth YTD 14 YTD 13 Growth quarter. Net sales (SEK million) 244.2 187.8 30% 758.3 632.1 20% • Product margin of 47%. EBITDA (SEK million) -4.0 -6.6 -9.2 -18.6 EBITDA margin (%) -1.6% -3.5% -1.2% -2.9% • Sales of private label products EBIT (SE
Slide 12: Gymgrossisten
Gymgrossisten Q3 14 Q3 13 Growth YTD 14 YTD 13 Growth • Sales increased by 20% in the third Net sales (SEK million) 203.6 169.0 20% 630.9 502.1 26% quarter. EBITDA (SEK million) 17.0 15.9 54.1 49.0 • Sales of private label products EBITDA margin (%) 8.3% 9.4% 8.6% 9.8% accounted for 42% of total sal
Slide 13: Tretti
Tretti Q3 14 Q3 13 Growth YTD 14 YTD 13 Growth • Sales increased by 29% in the third Net sales (SEK million) 160.3 124.6 29% 475.1 389.3 22% quarter. EBITDA (SEK million) 1.5 0.8 4.3 1.6 • Home & Garden category continues EBITDA margin (%) 1.0% 0.6% 0.9% 0.4% to grow. EBIT (SEK million) 0.8 -0.1 1.9
Slide 14: CDON.com
CDON.com Q3 14 Q3 13 Growth YTD 14 YTD 13 Growth • Sales increased by 8% in the third Net sales (SEK million) 418.7 386.8 8% 1,215.2 1,222.9 -1% quarter. EBITDA (SEK million) 1.3 -7.3 -3.9 4.0 • Reported an operating result (EBIT) EBITDA margin (%) 0.3% -1.9% -0.3% 0.3% close to break even. EBIT (SE
Slide 15: Lekmer
Lekmer Q3 14 Q3 13 Growth YTD 14 YTD 13 Growth • Sales increased by 58% in the third Net sales (SEK million) 95.6 60.6 58% 240.7 147.8 63% quarter. EBITDA (SEK million) -1.0 -3.4 -8.4 -7.1 • Preparations for Decembers sales EBITDA margin (%) -1.1% -5.7% -3.5% -4.8% including inventory build-up. EBIT
Slide 16: Forward looking statement
Forward looking statement • Deliver balanced sales growth and increased market shares, especially in Nelly and Gymgrossisten. • Qliro Payment Solution will be reported in the new segment Qliro Financial Services as of Q4 2014. Due to the large volumes during the fourth quarter Qliro Financial Servic
Slide 17: Thank you!
THANK YOU! Next report: 28 January 2015 For further information, please visit cdongroup.com Follow us on Twitter at or contact ir@cdongroup.com, +46 (0) 10 703 20 00 twitter.com/cdongroup
Slide 18: Important Information
IMPORTANT INFORMATION This presentation does not contain or constitute an invitation or an offer to acquire, sell, subscribe for or otherwise trade in shares, subscription rights or other securities in CDON Group. This document has not been approved by any regulatory authority. This document is not