Interim report for 1 January – 30 June 2015

Continued sales growth

Second quarter

  · Net sales increased by 8% to SEK 1,175.4 (1,091.0) million Including
divested operations, net sales increased by 6%
  · Operating profit from the current operating segments amounted to SEK -3.7 (
-0.5) million
  · Including Qliro Financial Services, divested operations and non-recurring
items, operating profit amounted to SEK -15.3 (35.0) million
  · Net income amounted to SEK -10.8 (21.2) million
  · Basic earnings per share amounted to SEK -0.07 (0.17)
  · Cash flow from operations, excluding changes in Qliro Financial Services’
lending portfolio, amounted to SEK 74.1 (73.4) million

First six months

  · Net sales increased by 8%, amounting to SEK 2,371.9 (2,196.0) million
Including divested operations net sales increased by 6%
  · Operating profit from current operating segments amounted to SEK -5.0 (-1.0)
million
  · Including Qliro Financial Services, divested operations and non-recurring
items, operating profit totalled SEK -49.6 (35.0) million
  · Net income amounted to SEK -40.2 (17.1) million
  · Basic earnings per share amounted to SEK -0.26 (0.13)
  · Cash flow from operations, excluding changes in Qliro Financial Services’
lending portfolio, amounted to SEK -144.2 (-94.2) million

Comments by the CEO
Paul Fischbein, President and CEO comments: “During the second quarter of 2015
we continued to execute on our growth strategy.  The majority of our
subsidiaries delivered stable sales growth and at the same time the roll out of
Qliro Financial Services continued at a high speed.

During the quarter Nelly was, for the first time,  the largest company in the
Group in terms of sales. The positive effects from Nelly’s focus on the Nordics
is beginning to pay off and the Nordic growth was approximately 25%, driven by
strong sales in Sweden. An important part of Nelly’s growth strategy is to
increase the share of private label sales. It was therefore encouraging that the
share of private label sales accelerated and amounted to 35% of Nelly’s turnover
during the second quarter. This success will be central to Nelly’s future
profitability. In all, Nelly continues to show positive momentum even though
important purchasing currencies, such as USD and GBP, have appreciated against
the Swedish Krona. During the quarter that currency effect had a negative impact
on Nelly’s result but excluding this,  Nelly is showing underlying improvements
in profit compared to last year.

The development of CDON Marketplace is also very positive and the transformation
of the business into an online marketplace in the Nordics continues. Sales
generated to external merchants increased by 75% during the second quarter. The
rapid transformation has been positive for CDON’s profitability, which improved
compared to last year. CDON’s important warehouse consolidation project will
also be completed shortly.

Tretti has during the past quarters shown stable and high growth, 17% during the
second quarter, coupled with positive earnings. The relocation of Tretti’s
offices and the new organization have started to show results. Lekmer has during
the quarter been focusing on deploying the new automated warehouse. It is
important that the new warehouse is fully tuned for the important fourth quarter
and the efforts will continue during the third quarter. Despite the deployment
of the new warehouse Lekmer recorded sales growth of 22% during the second
quarter. When the new infrastructure is fully operational it is expected to have
a positive impact both on customer satisfaction and efficiency.

Gymgrossisten delivered sales growth of 5% and even though the Nordic market has
matured the growth fell short of our expectations. The lower growth combined
with the fact that purchasing currencies have appreciated against the Swedish
Krona has, in the short term, affected the product margin and profitability
negatively. We are continuously working to secure continued strong  sales and
profitability going forward.

Qliro Financial Services was launched during the fourth quarter of last year. In
less than a year we have handled over 1,5 million orders and a business volume
exceeding SEK 1 billion. During the quarter the roll-out of the payment solution
in Finland continued and all the Group’s sites now offer Qliro as a payment
option. Furthermore, the demand from external merchants is high and the
affiliation of external clients and partnerships with platform providers have
continued. We applied for a license to become a credit market company earlier
during the year and, when approved, that license will create interesting
opportunities for us to launch new initiatives and launch the payment solution
in new markets. After these initial months of operations we are clearly very
enthusiastic about Qliro Financial Services’ future development.

To summarize, we have continued to strengthen our market positions. We have
healthy and satisfactory inventory levels, a good momentum and we are looking
forward to the important second half of the year.”

***

For additional information, please visit www.qlirogroup.com or contact:

Paul Fischbein, President and Chief Executive Officer
Phone: +46 10 703 20 00

Investor and analyst enquiries:
Nicolas Adlercreutz, CFO
Phone: +46 70 587 44 88
Email: ir@qlirogroup.com

Press enquiries:
Fredrik Bengtsson, Head of Communications
Phone: +46 70 080 75 04
Email: press@qlirogroup.com

About Qliro Group
Qliro Group is a 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 within 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 payment service solution Qliro is also part of the Group. In 2014, the Group
generated earnings of SEK 5.0 billion. Qliro Group’s share is listed on the
Nasdaq Stockholm MidCap list under the ticker symbol “QLRO”.

The information in this interim report is that which Qliro Group AB is required
to disclose under the Securities Markets Act. This information was released for
publication at 08.00 CET on 16 July 2015.