Year-End Report 2015

Fourth Quarter

  · Net sales increased by 2%, amounting to SEK 1,685.5 (1,649.7) million
  · EBITDA excluding divested operations during 2014 and non-recurring items
totalled SEK 7.0 (15.2) million
  · Operating profit excluding divested operations during 2014 and non-recurring
items amounted to SEK -5.7 (8.0) million
  · Including divested operations during 2014 and non-recurring items operating
profit amounted to SEK -31.9 (-3.6) million
  · Net income amounted to SEK -29.4 (-7.0) million
  · Basic earnings per share amounted to SEK -0.20 (-0.06)
  · Cash flow from operations, excluding changes in Qliro Financial Services’
lending to the public, amounted to SEK 142.8 (256.4) million
  · Operating profit is affected by non-recurring items of SEK 26.2 million
related to Lekmer

Full year 2015

  · Net sales increased by 4%, coming in at SEK 5,174.1 (4,966.7) million.
Including divested operations, net sales increased by 3%
  · EBITDA excluding divested operations during 2014 and non-recurring items
totalled SEK -23.6 (34.8) million
  · Operating profit excluding operations divested in 2014 and non-recurring
items amounted to SEK -65.6 (8.6) million
  · Operating profit including operations divested in 2014 and non-recurring
items and amounted to SEK -122.7 (33.0) million
  · Net income amounted to SEK -101.6 (5.4) million
  · Basic earnings per share amounted to SEK -0.68 (0.02)
  · Cash flow from operations, excluding changes in Qliro Financial Services’
lending to the public, amounted to SEK -73.4 (74.7) million


Comments by the CEO
Paul Fischbein, President and CEO comments: “The fourth quarter held many
positives but was also challenging. The Groups largest segment, CDON
Marketplace, delivered both strong sales and a significant earnings improvement.
During the year, we have implemented many important changes within CDON which
now are starting to bear fruit. CDON is undergoing major changes and the result
in the fourth quarter is a confirmation that we are heading in the right
direction even if key measures remains, including a larger reorganization which
we are working on now.

Our newly established subsidiary Qliro Financial Services continued to develop
in line with our high expectations. The large order volumes in the Group during
the quarter also contributed to large business volumes for the Qliro payment
solution and, one year after the launch, Qliro Financial Services reported
positive earnings in the fourth quarter. Loans to the public amounted to
approximately SEK 530 million at the end of the year, financed by around SEK 200
million by own funding. It has of course been pleasing to follow the development
of Qliro Financial Services during the first year of operations and this result
also gives an indication of the future potential in the segment. Next important
steps include, among other things, the continued roll out of Qliro Financial
Services, not least through a launch in Norway and the introduction of
additional financial services after the expected approval to become a credit
market company has been received from Finansinspektionen (the Swedish Financial
Supervisory Authority).

On the negative side we find Lekmer, where operational disturbances at the
warehouse once again had a large impact on the company’s and the Group´s sales
and earnings. The warehouse move and the deployment of the new warehouse system
has been more complex than expected, which resulted in major operational
consequences when volumes gradually increased during the quarter. At the end of
November, the company decided to minimize its marketing and other sales
promotion activities and to focus solely on delivering the orders which had
already been made. As a result of the disturbances, Lekmer has in conjunction
with the year-end closing expensed SEK 26 million related to inventory valuation
which is presented under non-recurring items in the fourth quarter. 2015 was a
turbulent year for Lekmer and the challenges in 2015 are fully related to
Lekmer’s new warehouse. However, we estimate that the major operational problems
are now behind us, even though it is expected to take another one to two
quarters before Lekmer is back to the same good standing it was a year ago. We
believe that Lekmer´s future high potential remains.

Overall, the fourth quarter was a challenging quarter affected by external
factors such as weather and currency effects at the same time as Lekmer’s
warehouse experienced large operational disturbances. However, we see that our
companies have strong market positions and, during 2015, the amount of active
customers continued to increase and now amount to a bit over 4 million consumers
in the Nordics. This creates very good conditions for an exciting future.”

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
Email: 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 2015, the Group
generated revenue of SEK 5.2 billion. Qliro Group’s shares are listed on the
Nasdaq Stockholm MidCap list under the ticker symbol “QLRO”.

The information in this Year-End 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 27 January 2016.