Interim report for 1 January – 30 September 2015


Third quarter

  · Net sales were in line with last year, amounting to SEK 1,116.8 (1,121.2)
million
  · Operating profit excluding divested operations during 2014 and non-recurring
items amounted to SEK -28.2 (1.5) million
  · Including divested operations during 2014 and non-recurring items operating
profit totalled SEK -41.1 (1.6) million
  · Currency effects have negatively affected operating profit by over SEK 20
million.
  · Net income amounted to SEK -32.0 (-4.7) million
  · Basic earnings per share amounted to SEK -0.21 (-0.04)
  · Cash flow from operations, excluding changes in Qliro Financial Services’
lending to the public, amounted to SEK -72.1 (-87.4) million

First nine months

  · Net sales increased by 5%, amounting to SEK 3,488.7 (3,317.2) million.
Including divested operations, net sales increased by 4%
  · Operating profit excluding divested operations during 2014 and non-recurring
items amounted to SEK -59.8 (0.6) million
  · Including divested operations during 2014 and non-recurring items the
operating profit totalled SEK -90.8 (36.6) million
  · Currency effects have negatively affected operating profit by over SEK 45
million.
  · Net income amounted to SEK -72.2 (12.3) million
  · Basic earnings per share amounted to SEK -0.48 (0.09)
  · Cash flow from operations, excluding changes in Qliro Financial Services’
lending to the public, amounted to SEK -216.2 (-181.7) million

Comments by the CEO
Paul Fischbein, President and CEO comments: “The third quarter was characterised
by significant operational changes and market related challenges such as
negative currency effects and lower consumer demand in Finland and Norway. Sales
in Sweden remain strong. We have finalised several key operational initiatives
and investments which create the right conditions to reach our long term
profitability targets. Our strong balance sheet, including healthy inventory
levels and a net cash position, provides an overall stable financial position.
In combination with the completed projects, this gives us a stronger platform
that can facilitate increased volumes and future profitability.

To accelerate the development of CDON Marketplace, we have strengthened the
management team including a new CEO, CFO, Head of Marketplace and a Head of
Operations. Additionally, the warehouse consolidation has been completed, in
line with cost estimates. All warehouse operations are now carried out in a new
and modern central warehouse, enabling coordinated deliveries and an improved
customer experience.

Lekmer has, during the quarter, focused on deploying its new highly automated
warehouse. The deployment of the warehouse took longer than planned and
operational disturbances had a larger impact on sales than expected. As a
result, sales and earnings in the third quarter were below our expectations.
Warehouse operations have now returned to normal levels and so far in October
sales are growing again.

Nelly continues to show strong growth on the Swedish market, amounting to 22
percent in the third quarter. The Nordic focus has led to declining sales
outside the Nordics. This was expected but nevertheless had a negative effect on
growth in the quarter. An important part of Nelly’s strategy is to increase the
share of private label sales. It was therefore important that the share of
private label sales continued to grow and amounted to 32% of Nelly’s turnover
during the quarter. Nelly’s underlying earnings improvements were overshadowed
by substantial negative currency effects, in comparison to the third quarter
last year, mainly attributable to more costly purchases in USD and GBP.

To secure continued strong sales and profitability within Gymgrossisten, we have
completed a reorganisation which will result in a sequential cost saving which
on an annual basis amounts to approximately SEK 8 million. Tretti continued to
show impressive and steady growth, which amounted to 18% in the third quarter.

We are also pleased to see that Qliro Financial Services continues to develop at
a high pace, both in Sweden and in Finland. During October, the payment solution
was also launched in Denmark and when we receive approval to become a credit
market company we expect to launch the payment solution in Norway as well. In
addition to the payment solution, Qliro Financial Services is working on
launching additional financial services and we are, for example, planning to
introduce deposits from the public after approval to become a credit market
company has been received. Since the launch, in December 2014, the company has
handled over 2.4 million transactions from over 1 million unique customers and
business volumes exceeding SEK 1.9 billion. These are impressive volumes
generated in a short period of time, showing the future potential of Qliro
Financial Services. Clearly, this is very exciting.

To summarise, we now have a stronger platform in place and we look forward to
the important fourth quarter.”

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

Paul Fischbein, President and Chief Executive Officer
Tel: +46 (0) 10 703 20 00

Nicolas Adlercreutz, CFO
Tel: +46 (0) 70 587 44 88

Questions from media, investors and research analysts:
Erik Löfgren, Head of
Communications
Tel: +46 (0) 700 80 75 06
E-mail: press@qlirogroup.com, ir@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 revenue of SEK 5.0 billion. Qliro Group’s shares are 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 21 October 2015.

Attachments

10201213.pdf