Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Qliro Group — Q3 2019 Earnings Presentation
16 slides from Nelly Group Ab's earnings presentation, Oct 22, 2019
Slide 1: Qliro Group – Q3 Report
Qliro Group – Q3 Report Marcus Lindqvist, CEO October 22, 2019
Slide 2: Third quarter progress
Third quarter progress Financial services to The leading Nordic A leading online Nordic consumers and merchants online marketplace fashion brand Expansion of loan book, Growth in sales Marketplace model increased profitability and but lower margins proven successful connected merchants on weak marke
Slide 3: Qliro improved profitability
Qliro improved profitability Profit improved SEKm ➔ Loan book grew 49% Q3 19 Q3 18 Δ ➔ Total operating income increased 12% Total operating income 85.7 76.7 12% ➔ Total operating expense excluding depreciations and Total operating expenses -73.6 -62.1 18% amortization increased 8%, following new ini
Slide 4: Loan book above SEK 1.9 billion
Loan book above SEK 1.9 billion Grown an average 55 percent per annum during last four years ➔ Continued ramp-up of personal loans to SEK 653m 1,852 ➔ Interest cost for loan book amounted to Loans to the public, Sales financing 1,777 1,710 Loans to the public, Personal loans SEK 7.6m Externally fina
Slide 5: Qliro on the right track
Qliro on the right track Total loan book, SEKm Sales financing, SEKm Personal loans, SEKm +49% +20% +167% 1 852 1 199 653 1 001 1 246 245 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Total income, SEKm Total opex1, SEKm EBTDA, SEKm +12% +8% +85% 86 52 56 19 77 10 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q
Slide 6: Separate listing of subsidiary Qliro in the first half of 2020
Separate listing of subsidiary Qliro in the first half of 2020 • Qliro Group starts process to list • Listing rationale: subsidiary Qliro on Nasdaq Stockholm – Provide best conditions for growth and main market during first half 2020 profitability, and thereby shareholder • Qliro is operationally an
Slide 7: CDON’s transformation successful
CDON’s transformation successful Strong growth in external merchant sales and profitable last 12 months SEKm Q3 19 Q3 18 Δ ➔ External merchants increased sales 66% and commission External GMV development External merchants 207.5 124.7 66% income 39% CAGR 15’-19’ Total GMV 399.1 396.4 1% ➔ Own sales
Slide 8: Transformation to higher scalability and lower risk
Transformation to higher scalability and lower risk Marketplace and drop shipment model enables growth with less capital Total gross merchandize value Traditional CDON Drop shipment Marketplace SEKm +36% SALES 865 753 276 468 253 +38% PLATFORM 118 247 500 589 179 39 350 54 208 125 PRICING Merchant 6
Slide 9: CDON’s marketplace model proven successful
CDON’s marketplace model proven successful External sales, SEKm Share external & drop ship Number of visits, ’000 +43% +13 p.p. +3% 787 51% 94 495 97 431 552 38% 2018 LTM 2019 LTM 2018 LTM 2019 LTM 2018 LTM 2019 LTM Inventory, SEKm Gross margin, percentage EBITDA, SEKm -46% +5 p.p. +40 159 16.9% 11
Slide 10: Nelly continues growth in weak market
Nelly continues growth in weak market Stabilized return levels ➔ Sales grew 7% in a weak market, returned to growth in Sweden SEKm Q3 19 Q3 18 Δ ➔ Product margin impacted by weak Swedish krona and clearance Net Sales 329.9 308.9 7% campaigns. This is likely to continue in Q4 as inventory is not on G
Slide 11: Financials
Financials Mathias Pedersen, CFO 11 11
Slide 12: Consolidated income statement (including IFRS 16)
Consolidated income statement (including IFRS 16) Decrease in net sales, increase in gross margin • Net sales decreased to SEK 625m (SEK 665m) SEKm Q3 19 Q3 18 in the quarter as growth in Nelly and Qliro was offset by the effects of CDON’s continued Net sales 624.6 665.1 transformation Gross profit
Slide 13: E-commerce cash flow
E-commerce cash flow Seasonally weak cash flow 212 -6 • Net inventory increased with SEK 33m during the quarter as Nelly prepared for -33 Q4, while CDON continued to lower its dependence on inventory • Other operating new working capital -30 -8 19 increased SEK 30m, following the -15 139 seasonal pa
Slide 14: E-commerce balance sheet
E-commerce balance sheet SEKm Nelly and CDON secured own financing 920 920 Cash 139 221 Accounts payable • E-commerce net cash amounted to SEK Accounts receivables 54 119m, as Nelly utilized part of its overdraft Other receivables 57 facility with its bank 246 Other operating debt • CDON’s continued
Slide 15: Qliro balance sheet
Qliro balance sheet Focus on further expansion SEKm 2,503 2,503 6 Cash 175 107 Accounts payable • Sales finance loan book amounted to SEK 1,199m 26 Other receivables Other liabilities and personal loans to SEK 653m Current investments 250 • Public deposits increased with 80% to SEK 1,523m • SEK 255m
Slide 16: THANK YOU
THANK YOU Next report released February 5 Nasdaq symbol QLRO Qliro Group AB (publ.) Box 195 25 SE-104 32 Stockholm +46 (0)10 703 20 00 ir@qlirogroup.com