Nelly Group AB · OMXSTO:NELLY

Nelly Group AB — CDON Group — Q4 2013 Earnings Presentation

15 slides from Nelly Group AB's earnings presentation, February 2014

  1. Slide 1: CDON Group Fourth Quarter and Full Year 2013

    CDON GROUP FOURTH QUARTER AND FULL YEAR 2013 PAUL FISCHBEIN, PRESIDENT AND CEO NICOLAS ADLERCREUTZ, CFO

  2. Slide 2: Highlights

    Highlights • Posi%ve opera%ng results in all four segments and three of four segments showed sales growth • Con%nued strong growth within Sports & Health segment • Healthy inventories & stronger financial posi%on • Launch of CDON.com’s Marketplace • Launch of Nelly.com on new markets • New CEO for CD

  3. Slide 3: Financials

    FINANCIALS 3

  4. Slide 4: Summary of Q4

    Summary of Q4 Entertainment Fashion Sport & Health Home & Garden Q4 13 Q4 12 Q4 13 Q4 12 Q4 13 Q4 12 Q4 13 Q4 12 Q4 13 Q4 12 Net sales (mn) 784.5 912.7 300.4 296.1 175.3 128.9 211.3 197.5 1 470.6 1 541.5 Growth yoy -­‐14.0% 18.2% 1.5% 21.1% 36.0% 32.8% 7.0% 14.7% -­‐4.6% 19.9% Sales share 53.3% 59.2

  5. Slide 5: Income Statement

    Income Statement 2013 2012 2013 2012 Q4 Comments (SEK million) Oct-­‐Dec Oct-­‐Dec Jan-­‐Dec Jan-­‐Dec • Q4 net sales, excluding divested opera%ons 1 470.6 1 541.5 4 416.9 4 359.1 Net Sales * and currency effects, fell by 2.1% mainly Gross profit * 213.2 198.4 627.0 612.1 due to the decline within the

  6. Slide 6: Cash Flow

    Cash Flow 2013 2012 2013 2012 • Less %ed up capital in inventories and (SEK million) Oct-­‐Dec Oct-­‐Dec Jan-­‐Dec Jan-­‐Dec receivables Cash flow from opera%ng 29.1 -­‐15.8 -­‐54.5 -­‐97.5 ac%vi%es Changes in working capital 109.0 149.2 -­‐84.0 -­‐135.1 • Cash flow from opera%ons increased to SEK Cas

  7. Slide 7: Financial Position

    Financial PosiIon • Inventory levels dropped by SEK 44 mn during the 2013 2012 quarter to SEK 525.2 (609.7) mn (SEK million) 31-­‐Dec 31-­‐Dec Total non-­‐current assets 724.6 678.5 • Cash and cash equivalents increased to SEK 288.9 Inventories 525.2 609.7 (126.1) mn Total receivables 222.9 268.5 Ca

  8. Slide 8: Business Segments

    BUSINESS SEGMENTS 8

  9. Slide 9: Entertainment

    Entertainment • Segment sales down by 14.0% y/y in Q4 and by 9.7% y/y full year OperaIng development • Sales of media-­‐related products con%nued to decline 2500 2386 10,0% 2155 • Launch of CDON.com Marketplace in Q4 2000 8,0% SEK (million) • The segment’s result was affected by costs rela%ng to the

  10. Slide 10: Fashion

    Fashion • Sales increased by 1.5% y/y in Q4 and by 11.0% y/y full OperaIng development year, excluding divested en%%es • Excluding currency effects and divested business, sales 1000 933 2,0% 1,3% 840 increased by 3% y/y in Q4 and by 13% y/y full year 800 0,0% -­‐1,7% • Sales of private label products

  11. Slide 11: Sports & Health

    Sports & Health • Sales increased by 36.0% y/y in Q4 and by 36.5% y/y full OperaIng development year 1000 10,0% 9,6% 9,5% 8,9% • The segment con%nued to strengthen its posi%on in all 800 8,1% 8,0% markets 677 SEK (million) Margin 600 496 6,0% • The broadening of private label products con%nued 400 4

  12. Slide 12: Home & Garden

    Home & Garden • Sales increased by 7.0% y/y in Q4 and by 4.3% y/y full OperaIng development year 700 659 4,0% • The increase in sales in the segment was fuelled by sales 632 growth within both TreG and Room21 600 3,0% 2,5% SEK (million) 500 2,0% Margin • Opera%ng profit of SEK 5.3 (-­‐3.1) mn in Q4 a

  13. Slide 13: CDON Group Logistics

    CDON Group LogisIcs • Break even in Q4 OperaIng development • As of the third quarter 2013 the logis%cs company has 0 become an integral part of each en%ty where the 0 opera%onal responsibility now lies with each company -­‐5 SEK (million) • CDON Group Logis%cs’ result will not be reported -­‐10 sep

  14. Slide 14: Forward looking statement

    Forward looking statement • Deliver a balanced sales growth and increased market shares, especially in the in the segments Sports & Health and Fashion • Con%nue to focus on underlying earnings improvement • CDON.com will during 2014 con%nue to invest in the transforma%on to become the leading full-­

  15. Slide 15: Thank you!

    THANK YOU! Next report: 24 April 2014 For further information, please visit cdongroup.com Follow us on Twitter at or contact ir@cdongroup.com, +46 40 703 20 00 twitter.com/cdongroup

CDON Group — Q4 2013 Earnings Presentation on 6ix