Slide 1: Qliro Group – Q1 Report
Qliro Group – Q1 Report Marcus Lindqvist, CEO April 17, 2019
Slide 2: All companies improved results
All companies improved results Financial services to The leading Nordic A leading online Nordic consumers and merchants online marketplace fashion brand Inflow of new merchants Growth for external sales Strong growth in net sales and and and expansion of loan book improved efficiency improved margin
Slide 3: Qliro Financial Services attracted new merchants
Qliro Financial Services attracted new merchants Profit improved substantially SEKm Total operating income increased 26%, driven by increased Q1 19 Q1 18 Δ lending to the public Total operating income 86.0 68.1 26% Total operating expense increased 17%, proving the scalability Total operating ex
Slide 4: Loan book above SEK 1.5 billion
Loan book above SEK 1.5 billion Grown 70 percent per annum last four years Machine learning applied to internal and external data for real-time credit scoring Continued ramp-up of personal loans to Net lending, SEKm 1,530 SEK 423m Loans to the public, Sales financing 1,514 Loans to the public, P
Slide 5: Qliro Financial Services on the right track
Qliro Financial Services on the right track Total loan book, SEKm Sales financing, SEKm Personal loans, SEKm +49% +20% +289% 1 514 1 091 423 910 1 019 109 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Total income, SEKm Total opex, SEKm EBTDA, SEKm +26% +17% +295% 86 70 14 68 59 4 Q1 2018 Q1 2019
Slide 6: CDON Marketplace benefits from transformation
CDON Marketplace benefits from transformation Growth in external merchants and higher gross profit SEKm Q1 19 Q1 18 Δ Proven model with over 1,500 External GMV development merchants e.g. Adlibris, VidaXL, CAGR 15’-19’ External merchants 150.8 111.2 36% Furniturebox, Ellos, Cervera, Carpet Vista an
Slide 7: CDON Marketplace on the right track
CDON Marketplace on the right track External sales, SEKm Share external & drop ship Number of visits, ’000 +36% +14 +3% 151 52% 21 951 22 574 111 38% Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Inventory, SEKm Gross margin, percentage EBITDA, SEKm -31% +6 191 16.8% +14 132 10.5% -7 -21 Q1 2018 Q
Slide 8: Nelly shows growth and improved gross profit
Nelly shows growth and improved gross profit Digitalized return process SEKm Q1 19 Q1 18 Δ Growth initiatives increased net sales 10%, number of Net Sales 302.4 276.0 10% customer 7% and average order 11% Gross profit 68.8 58.0 19% Return ratio amounted to 39%, same as Q4 2018, but higher level
Slide 9: Nelly on the right track
Nelly on the right track Number of customers, ’000 Net Sales, SEKm Product margin, percentage +7% +10% +2 1 265 1 351 302 46% 48% 276 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Gross margin, percentage Return ratio, percentage EBITDA, SEKm +2 23% 38% 39% 39% +8 21% 37% 34% 35% 36% -7 -15 Q3 Q4
Slide 10: CDON Marketplace
CDON Marketplace CEO Kristoffer Väliharju 04/17/2019
Slide 11: The Nordic’s largest marketplace
The Nordic’s largest marketplace Company overview Selected merchants Founded in 1999, as one of the first 2013 extended assortment by opening up for external e-commerce players at scale in the Nordics merchants Since inception, CDON has accumulated an 2018 accelerated transformation to exter
Slide 12: Built for future shopping behavior
Built for future shopping behavior First mover advantage in untapped regional market 1 2 3 4 Marketplaces have A proven model Built for future Enters new phase over 40% of global with external shopping behavior, with increased online sales, but merchants selling lower operational efficiency thanks t
Slide 13: 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 PLATFORM 253 468 118 589 182 205 500 350 111 71 151 54 PRICING Merchant 6% 11%
Slide 14: Category leaders as well as long-tail merchants
Category leaders as well as long-tail merchants Building their sales reach and competitiveness 14
Slide 15: Priorities
Priorities The best buying and selling experience online Assortment & Customer Commercial Operational Merchants Retention Offer Excellence • Accelerate onboarding • New CRM – capitalize • Capitalize on traffic • Increase automation for on customer data volumes with scalability and • Focus on categor
Slide 16: Financials
Financials Mathias Pedersen, CFO 16 16
Slide 17: Consolidated income statement
Consolidated income statement Decrease in net sales, increase in gross margin • Net sales decreased to SEK 640m (SEK 716m) in the quarter, as growth in Nelly and Qliro Financial SEKm Q1 19 Q1 18 Services was offset by CDON’s transformation Net sales 639.8 716.1 • While the transformation in CDON had
Slide 18: E-commerce cash flow
E-commerce cash flow 670 Seasonal negative cash flow -29 -1 • Seasonally weak quarter with negative -100 result -32 -14 • Inventory remained flat as the SEK 45m -35 decrease (-31%) in CDON offset the SEK 46m increase (+12%) in Nelly • Accounts payables decreased as -256 invoices for products sold in
Slide 19: E-commerce balance sheet
E-commerce balance sheet Bond redemption reduced debt with SEK 250m SEKm 1,024 1,024 • E-commerce net cash amounted to SEK 205m Cash 205 255 Accounts payable • Bond repaid to reduce debt and cut interest cost Accounts receivables 54 with SEK 12m annually (early redemption cost of Other receivables 7
Slide 20: Qliro Financial Services balance sheet
Qliro Financial Services balance sheet Well positioned for further expansion SEKm 1,929 1,929 20 27 5 Cash Accounts payable • Sales finance loan book amounted to SEK 1,091m and 168 Other receivables Other liabilities personal loans to SEK 423m Current investments • SEK 193m held as liquidity reserve
Slide 21: Thank you
THANK YOU Next report released July 12 Nasdaq symbol QLRO Qliro Group AB (publ.) Box 195 25 SE-104 32 Stockholm +46 (0)10 703 20 00 office@qlirogroup.com