Interim report for 1 January

First Quarter

  · Net sales were up 10%, amounting to SEK 1,133.2 million. Previous year sales
totalled SEK 1,032.4 million excluding divested operations and SEK 1,051.1
million including divested operations
  · Gross margin of 14.9% compared with 14.1% previous year, excluding divested
operations
  · Operating profit amounted to SEK 0.1 million. Previous year operating profit
was SEK -4.2 million excluding divested operations and SEK -7.8 million
including divested operations
  · Net income totalled SEK -4.2 (-17.3) million
  · Basic earnings per share of SEK -0.04 (-0.21)
  · Cash flow from operations improved by SEK 159.4 million and amounted to SEK
-167.7 (-327.1) million

CEO statement
Paul Fischbein, President and CEO, commented: “CDON Group has seen a promising
start to 2014; we are delivering a growth of 10 percent, a positive operating
profit in this seasonally weak first quarter and an improvement in cash flow of
almost SEK 159 million year-on-year. Sports & Health continues to display a high
growth rate at 30 percent, as well as stable margins. Home & Garden enjoyed
strong sales during the quarter, with an increase of 26 percent.

The transformation of CDON.com into a leading online department store is
continuing. Sales volumes for CDON.com Marketplace displayed good growth in the
first quarter, and CDON.com’s operating profit, which is included in the
Entertainment segment, was slightly above break-even.

Within Nelly.com, the previous quarter’s launch in France was followed up by
launches in Belgium and Poland (after the end of the interim reporting period).
NLYman.com, an online boutique devoted exclusively to the fashion-conscious man,
was also launched.

After the first quarter we disclosed a pilot test of an in-house payment
solution for two of the Group’s Swedish sites. Testing will start in the coming
months. We see the pilot test as an important step to further improve the
shopping experience while CDON Group can a take a greater responsibility for the
value chain.

All in all, CDON Group is in a good position to be able to gradually increase
investments in 2014 to fuel growth, mainly within the Fashion and Sports &
Health segments.”

For further information, please visit www.cdongroup.com, or contact:
Paul Fischbein, President and Chief Executive Officer
Phone: +46 (0) 10 703 20 00

Investor and analyst enquiries:
Nicolas Adlercreutz, CFO
Phone: +46 (0) 70 587 44 88

Press enquiries:
Fredrik Bengtsson, Head of Communications
Phone: +46 (0) 70 080 75 04
E-mail: press@cdongroup.com, ir@cdongroup.com

About CDON Group
CDON Group is the leading e-commerce group in the Nordic region. Established in
1999, the Group has expanded its product portfolio and is now a leading e
-commerce player in the Entertainment (CDON.com, Lekmer.com), Fashion
(Nelly.com, NLYman.com, Members.com), Sports & Health (Gymgrossisten.com,
Bodystore.com, Milebreaker.com) and Home & Garden (Tretti.com and Room21.se)
segments. In 2013, the Group generated earnings of SEK 4.5 billion. CDON Group’s
share is traded on the NASDAQ OMX Stockholm MidCap list under the CDON ticker
symbol.

The information in this interim report is that which CDON Group AB is required
to disclose under the Securities Markets Act. This information was released for
publication at 08:00 CET on 24 April 2014.
Interim report for 1 January – 31 March 2014

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