Nelly Group Ab · OMXSTO:NELLY
Nelly Group Ab — Qliro Group — Q3 2018 Earnings Presentation
18 slides from Nelly Group Ab's earnings presentation, Oct 19, 2018
Slide 1: Qliro Group - Q3 Interim Report
Qliro Group - Q3 Interim Report Marcus Lindqvist, CEO October 19, 2018
Slide 2: Progress in building three independent companies
Progress in building three independent companies Financial services to A leading Nordic A leading online Nordic consumers and merchants online marketplace fashion brand Successful profitable Focus on external Accelerating transformation growth merchants, existing offering Evaluating structural Evalu
Slide 3: Updated financial targets
Updated financial targets Focus on external merchants (CDON Transformation to Successful profitable decreased volumes) marketplace model growth strategy • Growth in external • Organic growth in net sales • Operating income before merchandize value above 20 above 10 per cent per year depreciation and
Slide 4: Qliro Financial Services continues to grow
Qliro Financial Services continues to grow Proven scalability and low acquisition costs SEKm Q3 18 Q3 17 Δ Total operating income increased 36%, driven by increased lending to the public Total operating income 76.7 56.3 36% Total operating expense increased 32%, indicating scalability in Total o
Slide 5: Loan book above SEK 1.2 billion
Loan book above SEK 1.2 billion Focus on cost-efficient expansion Machine learning applied to internal and external data for real-time credit scoring Continued ramp-up of personal loans to Net lending, SEKm SEK 245m Loans to the public, Sales financing Loans to the public, Personal loans 1,246 1
Slide 6: CDON Marketplace accelerates transformation
CDON Marketplace accelerates transformation Focus on external sales growth SEKm Q3 18 Q3 17 Δ Proven model with over 1,500 External GMV development 124.7 101.9 22% merchants e.g. Adlibris, VidaXL, CAGR 14’-18’ GMV external Furniturebox, Ellos, Cervera and Total GMV 396.4 445.4 -11% Trademax Net sa
Slide 7: 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 +61% SALES 853 753 302 253 468 PLATFORM 118 500 552 152 178 350 50 53 102 125 PRICING Merchant 6% 11%
Slide 8: Nelly delivers strong profitable growth
Nelly delivers strong profitable growth Two quarters in a row with 11 percent growth SEKm Q3 18 Q3 17 Δ Growth initiatives increased numbers of visit with 7%, number Net Sales 308.9 277.5 11% of orders with 12%, number of customer with 15% and average order with 5% EBITDA 23.9 23.7 Net sales inc
Slide 9: Nelly – A Leader in Online Fashion
NELLY – A LEADER IN ONLINE FASHION Anna Ullman Sersé, CEO October 2018 qlirogroup.com
Slide 10: Nelly – a top online fashion brand for clothes and accessories
Nelly – a top online fashion brand for clothes and accessories Fast growth with high margin 44% 1.4 ➜ The fashion inspiration destination for the latest trends and must-haves for young people SHARE OF BRANDS MILLION ACTIVE ➜ Excellent brand position in the Nordics, and CUSTOMERS trusted for its fash
Slide 11: A well-established brand and company
A well-established brand and company Own brands and strong customer loyalty resulting in profitable growth Sales SEKm H ISTORY 1500 1388 1400 1310 1300 1244 1197 2003 Launch in Sweden 1200 1100 2015 2016 2017 Q3 LTM 2007 Acquisition and further investments by Qliro Group EBITDA SEKm 150 121 100 77 6
Slide 12: An excellent brand position in attractive segment
An excellent brand position in attractive segment Trusted by trendy women and men aged of 18 to 35 ➜ Young women go to Nelly.com for fashion Top brands visited weekly for Swedes who use online clothing stores for inspiration* 15-19 y/o 50 Brand preference per age group advice, as Nelly is trusted to
Slide 13: Nelly's circle of inspiration around the latest trends
Nelly’s circle of inspiration around the latest trends Early and precis trend catchers enabling customers to shop from inspiration To be a confident young To provide that bit of extra woman’s best friend, who glam to every outfit and she looks to for inspiration occasion. At an affordable and glam p
Slide 14: Data-driven decision and strong inhouse fashion capabilities
Data-driven decision and strong inhouse fashion capabilities Capability circle Data driven customer interaction Digital enabled trend watching and short product lead time Data driven sales and efficient logistics B I G D ATA CUSTOMER Nearly half of target group in database MACHINE LEARNING Short pro
Slide 15: New financial targets to reflect growth strategy
New financial targets to reflect growth strategy Two quarters in a row with profitable double digits growth New financial targets for higher growth same margin: 10 percent organic growth per year CURATED ASSORTMENT PROFITABLE GROWTH 6 percent EBITDA per year Best in class selection of products Profi
Slide 16: Summary
Summary Marcus Lindqvist, CEO 16 16
Slide 17: Value creation in three fully independent operations
Value creation in three fully independent operations Third quarter Focus MERCHANT Strategic direction RECRUITMENT Qliro Financial Services continues its loan book implemented – three expansion leveraging e-commerce volumes and independent companies GEOGRAPHICAL organizational scalability REACH O
Slide 18: Thank you
THANK YOU Next report released February 5 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