Interim report for 1 January – 30 September 2014

21% sales growth in Q3
Third quarter

  · Net sales, excluding divested operations, were up 21%, amounting to SEK
1,121.2 (928.8) million. Including divested operations, net sales rose by 18%,
amounting to SEK 1,121.2 (949.6) million.
  · Operating profit, excluding divested operations and non-recurring items,
totalled SEK 1.5 (-17.2) million. Including divested operations and non
-recurring items, operating profit totalled SEK 1.6 (-17.9) million
  · Net income totalled SEK -4.7 (-21.1) million
  · Earnings per share amounted to SEK -0.05 (-0.21)
  · Cash flow from operations amounted to SEK -97.7 (14.6) million
  · After end of the quarter, the board resolved on a preferential rights issue
of approximately SEK 650 million

First nine months

  · Net sales, excluding divested operations, increased by 15%, amounting to SEK
3,317.2 (2,888.1) million. Including divested operations, net sales rose by 13%,
amounting to SEK 3,365.2 (2,969.9) million.
  · Operating profit, excluding divested operations and non-recurring items,
totalled SEK 0.6 (-25.3) million. Including divested operations and non
-recurring items, operating profit totalled SEK 36.6 (-74.6) million
  · Net income amounted to SEK 13.3 (-83.1) million
  · Earnings per share amounted to SEK 0.11 (-1.03)
  · Cash flow from operations was SEK -193.1 (-276.6) million

CEO statement
Paul Fischbein, President and CEO of CDON Group comments: “CDON Group’s sales
continued to display momentum in the third quarter. The Group saw total growth
of 21%, with healthy sales figures in all segments, particularly within Nelly,
which grew by 30%.

Group result also continued to show improvement, partly owing to the initiatives
launched over the past two years. For example, the Swedish operations of Nelly
reported a 5 percent operating margin for Q3 and 4 percent for the nine-month
period, compared with a loss in the previous year.

Lekmer and Tretti continues to show healthy growth, with 58% and 29%
respectively. The transformation of CDON.com continued as planned, with rising
revenues and growth within Marketplace.

Following successful pilot tests, our in-house developed payment service, Qliro
Payment Solution is now in the process of being rolled out to the Group’s
Swedish stores at the end of this year and in 2015. It is an important next step
in the launch of Qliro Payment Solution and something we are very much looking
forward to.

As part of our efforts to provide additional relevant information around the
development of the individual segments, we are expanding the segment reporting
from the third quarter. We are also splitting the Entertainment segment into
CDON.com and Lekmer. As a result of this all our larger operating companies or
sub-Groups will be reported separately. See page 6 for further details.

In order to launch Qliro Payment Solution in full scale, facilitate the
expansion of subsidiaries, especially within Nelly, and to strengthen the
balance sheet by early redemption of the convertible bond, the Board has
resolved to execute a preferential rights issue of approximately 650 MSEK.”

***

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. Since the start
in 1999, the Group has expanded and broadened its product portfolio and is now a
leading e‐commerce player in consumer goods and lifestyle products through
CDON.com, Lekmer, Nelly (Nelly.com, NLYman.com, Members.com), Gymgrossisten
(Gymgrossisten.com/Gymsector.com, Bodystore.com, Milebreaker.com) and Tretti.
The group also comprises the payment solution Qliro. In 2013, the group
generated SEK 4.5 billion in revenue. CDON Group’s shares are listed on
Stockholm’s Nasdaq Mid-cap list under short name “CDON”.

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 22 October 2014.