Interim report for 1 January – 31 March 2016

First Quarter

  · Net sales amounted to SEK 1,171.3 (1,196.5) million
  · EBITDA excluding non-recurring items amounted to SEK -20.0 (-7.4) million
  · Operating earnings excluding non-recurring items amounted to SEK -34.3 (
-16.4) million. Operating earnings including non-recurring items amounted to SEK
-49.7 (-34.3) million
  · Net income after tax amounted to SEK -40.5 (-29.4) million
  · Earnings per share amounted to SEK -0.27 (-0.20)
  · Cash flow from operations amounted to SEK -220.6 (-218.3) million
  · Including changes in Qliro Financial Services’ consumer lending, cash flow
from operations amounted to SEK -169.0 (-219.9) million

CEO statement
Paul Fischbein, CEO comments: ”During the first quarter, Qliro Financial
Services continued to develop in line with our high expectations. The business
volume increased by 52% while operating income increased by a full 161% to SEK
47 million. Operating earnings (EBT) increased significantly and amounted to SEK
-4.9 million compared to SEK -13.3 million last year. We expect that Qliro
Financial Services soon will receive approval to become a credit market company,
and the company has continued preparations for the launch on the Norwegian
market. This, together with the introduction of additional financial services,
will be the next big step in the company’s development.

For our retail businesses the quarter in general was affected by the, calendar
wise, early Easter and the weakened Norwegian krone. Additionally, the mild
weather has led to campaign-driven sales and a lower gross margin, not least for
Nelly. At the same time we see positive signs that are expected to lead to
substantial earnings effects during the year.

Nelly’s focus on reducing cost and profitable growth has started to show results
and the operating margin increased during the quarter. Nelly’s sales increase
was mainly driven by strong growth in Sweden, amounting to 17%. The margin
improvement was achieved even though the company has conducted extensive
campaigns as a result of the mild winter and a clearance-driven fashion market
in the Nordics. Focus going forward will be on improving the product margin,
something which will be supported by the fact the company has a sound inventory
after the campaigns during the quarter. Nelly has also, in April, given notice
to approximately 35 employees at the offices in Borås and Stockholm. This is
never an easy decision, but necessary and important in order to strengthen the
company and create an organization and cost structure suited to the continued
implementation of the company’s Nordic strategy.

At Lekmer, we see that the quality of the warehouse operations in Arlandastad
has increased substantially, with improvements in both delivery times and
delivery quality. The delivery quality is now in line with where it should be
and the fact that Lekmer once again reports increased visits and orders during
the quarter is an important sign that our customers believe in Lekmer. Costs at
the warehouse are however still high, but we hope to soon reach a solution which
will reduce the cost level significantly.

Within CDON Marketplace, sales generated for external merchants (Marketplace)
grew by around 20% in the quarter. This is an important development for the
company and, as part of this development, we are of course very pleased that
CDON has been able to add Adlibris as a merchant on CDON Marketplace. The next
exciting initiative from CDON will be the launch of Green Friday, the Black
Friday of the Spring, at the end of April.

Lastly, we can now see that the actions taken at Gymgrossisten in 2015 to secure
continued strong profitability are starting to show results and the margins in
the first quarter are at a satisfactory level.

The Groups financial position remains sound with cash and cash equivalents of
over SEK 130 million. Moreover, we have also, with own funding, financed Qliro’s
loans to the public with around SEK 150 million.”

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

Press, investor and analyst enquiries:
Erik Löfgren, Head of Communications
Tel: +46 (0) 700 80 75 06
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 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 19 April 2016.