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CDON Group Q2 2012

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CDON Group financial results for the second quarter and first six months 2012

CDON Group financial results for the second quarter and first six months 2012

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CDON Group Q2 2012 CDON Group Q2 2012 Presentation Transcript

  • Financial Results for the Second Quarter and First Six Months 2012 18 July 2012
  • Second quarterYet another strong growth quarter with a sales increase of 38% year on year• Net sales up 38% y/y to SEK 952.1 (689.1) mn Operating development • Net sales up 38% at constant exchange rates 1200 952 10,0% 1000• Gross profit up 13% y/y to SEK 142.9 (126.4) mn & 800 689 6,0% SEK (million) gross margin of 15.0% excl. non-recurring items Margin 600 • Gross profit down 13.8% y/y to SEK 109.0 (126.4) mn 400 2,8% 2,0% with a gross margin of 11.4%, incl. non-recurring items 200 of SEK -33.9 mn 19 -44 -2,0% 0 -200 -4,6% -6,0%• Operating profit of SEK -5.8 (23.8) mn & operating Q2 2011 Q2 2012 margin of -0.6% excluding non recurring items Net Sales Operating profit Operating margin • Operating profit of SEK -43.5 (19.1) mn & operating margin of -4.6% including non-recurring items of SEK No. of website visits (’000) No. of orders (’000) -37.7 mn 60 000 1 600 +53% 1 400 +16%• Pre-tax profit of SEK -48.5 (15.1) mn & net income of 50 000 1 200 SEK -37.1 (10.4) mn 40 000 1 000 • Earnings per share of SEK -0.54 30 000 800 600 20 000 400 10 000 200 0 0 Q2 2011 Q2 2012 Q2 2011 Q2 2012 Entertainment Fashion Entertainment Fashion Sports & Health Home & Garden Sports & Health Home & Garden 2
  • Half yearSales growth of 51% YTD• Net sales up 51% y/y to SEK 1,906.4 (1,260.9) mn Operating development • Net sales up 51% at constant exchange rates 2500 12,0% 1906 2000• Gross profit up 24% y/y to SEK 292.5 (236.3) mn & gross 1500 1261 6,0% SEK (million) margin of 15.3% excl. non-recurring items Margin • Gross profit up 3.5% y/y to SEK 244.6 (236.3) mn & gross 1000 3,1% margin of 12.8% incl. non-recurring items of SEK -47.9 mn 500 0,0% 39 -2,9% 0 -56• Operating profit of SEK -3.9 (43.9) mn & operating -500 H1 2011 H1 2012 -6,0% margin of -0.2% excl. non-recurring items • Operating profit of SEK -55.6 (39.2) mn & -2.9% operating Net Sales Operating profit Operating margin margin incl. non-recurring items of SEK -51.7 mn related to Nelly.com’s warehouse relocation and adjusted offset No. of website visits (’000) No. of orders (’000) model for returned goods 120 000 3 500 +62% +21% 3 000• Pre-tax profit of SEK -66.0 (31.8) mn & net income of 100 000 2 500 SEK -50.1 (23.1) mn 80 000 2 000 60 000 1 500• Basic earnings per share of SEK -0.72 (0.35) and diluted 40 000 1 000 earnings per share of SEK -0.72 (0.35)* 20 000 500 *Basic earnings per share for all periods has been calculated on the average number of outstanding shares for the periods, amounting to 66,342,124. Diluted earnings per share for all 0 0 periods has been calculated on the average number outstanding shares after dilution for the H1 2011 H1 2012 H1 2011 H1 2012 periods, amounting to 72,921,071. Entertainment Fashion Entertainment Fashion Sports & Health Home & Garden Sports & Health Home & Garden 3
  • Group Summary Entertainment Fashion Sports & Health Home & Garden Q2-12 H1-12 Q2-12 H1-12 Q2-12 H1-12 Q2-12 H1-12 Q2-12 H1-12 Net sales 464.1 948.3 225.9 422.3 116.4 244.0 146.1 292.4 952.1 1,906.4Growth yoy 27% 30% 23% 43% 29% 31% 199% 469% 38% 51%Sales share 49% 50% 24% 22% 12% 13% 15% 15% 100% 100% EBIT 11.8 36.0 -57.5 -96.1 10.9 24.3 -3.4 -9.3 -43.5 -55.6EBIT margin 2.6% 3.8% -25.5% -22.8% 9.4% 9.9% -2.3% -3.2% -4.6% -2.9% Visits 19.6 41.9 29.3 59.6 3.0 6.5 2.7 5.3 54.5 113.2 Orders 0.9 1.9 0.4 0.7 0.2 0.3 0.1 0.1 1.4 3.0 4
  • Business Profile & Performance 5
  • EntertainmentContinued strong growth within the consumer electronics category Operating development• Sales up 27% y/y in Q2 and 30% y/y YTD 1000 948 10,0% • The product category consumer electronics continued to grow at a high rate and constituted a larger share of 800 727 8,0% sales than previously SEK (million) Margin 600 6,0% 464• Represented 49% (53%) of total Group sales in Q2 366 400 3,9% 3,8% 4,0% and 50% (58%) YTD 2,6% 200 2,7% 2,0% 28 36• Operating profits of SEK 11.8 (9.9) mn in Q2 and SEK 10 12 0 0,0% 36.0 (28.1) mn YTD Q2 2011 Q2 2012 H1 2011 H1 2012 • Operating margin of 2.6% (2.7%) in Q2 and 3.8% Net Sales Operating profit Operating margin (3.9%) YTD No. of website visits (’000) No. of orders (’000) 25 000 880 +22% +6% 870 20 000 860 850 15 000 840 830 10 000 820 5 000 810 800 0 790 Q2 2011 Q2 2012 Q2 2011 Q2 2012 6
  • Fashion23% year on year revenue growth in Q2 following geographical expansions andmarket share gains on the Nordic market Operating development• Sales increased by 23% y/y in Q2 and by 43% y/y YTD • Growth is a combination of increased market shares in 600 12,0% the Nordic markets and geographical expansion 422 outside the Nordics 400 4,0% 4,5% 296 1,3% SEK (million) • In the second quarter a local version of Nelly.com was Margin 184 226 launched in the UK and Heppo.com was launched in -4,0% 200 the Netherlands 4 -12,0% • Nelly .com completed the warehouse transfer, which is 0 8 crucial for its continued expansion -22,8% -20,0% -58 -25,5% -96 -200 -28,0%• Represented 24% (27%) of total Group sales in Q2 Q2 2011 Q2 2012 H1 2011 H1 2012 and 22% (24%) of total Group sales YTD Net Sales Operating profit Operating margin No. of website visits (’000) No. of orders (’000)• Operating profits of SEK -19.8 (8.3) mn in Q2 35 000 400 excluding non recurring items and SEK -57.5 (8.3) mn +74% +31% including non recurring items of SEK -37.7 mn 30 000 350 • Operating margin of –25.5% (4.5%) including non 25 000 300 recurring items 250 20 000 • Relocation of warehouse for Nelly.com contributed 200 largely to the non-recurring items 15 000 150 • The increased growth also contributed to a negative 10 000 100 impact on earnings in the quarter 5 000 50 0 0 Q2 2011 Q2 2012 Q2 2011 Q2 2012 7
  • Sports & Health29% year on year revenue growth in Q2 with continued geographical expansion Operating development• Sales up 29% y/y in Q2 and 31% y/y in H1 • Strong sales growth in the second quarter 400 14,0% • The launch on the German market has gone according 12,0% 11,0% to plan and the product line has expanded daily 10,7% 9,9% 10,0% 9,4% SEK (million) 244 Margin 187 8,0% 200• Sports & Health segment represented 12% (13%) of 6,0% 90 116 Group sales in the second quarter and 13% (15%) in 4,0% the first half of the year 20 24 2,0% 10 11 0 0,0%• Operating profits of SEK 10.9 (9.6) mn in Q2 and SEK Q2 2011 Q2 2012 H1 2011 H1 2012 24.3 (20.4) mn YTD Net Sales Operating profit Operating margin • Operating margins of 9.4% (10.7%) in Q2 and margins of 9.9% (11.0%) YTD No. of website visits (’000) No. of orders (’000) 3 500 160 +46% +20% 155 3 000 150 2 500 145 2 000 140 1 500 135 130 1 000 125 500 120 0 115 Q2 2011 Q2 2012 Q2 2011 Q2 2012 8
  • Home & GardenIncreasing market shares in respective categories Operating development• The YTD 2011 figures for the Home & Garden 292 segment includes Rum21 from Feb 2011 and 300 7,0% Tretti.com from June 2011 250 5,0% 200 SEK (million) 146 3,0% Margin• The segment’s sales amounted to SEK 146.1 (48.9) 150 1,3% 1,5% 1,0% mn in Q2 and to SEK 292.4 (51.4) mn YTD 100 49 51 • The segment continued with investments in all 50 -1,0% markets and continued to gain market shares in their 1 -2,3% 1 -3,2% 0 -3,0% respective categories -3 -50 -9 -5,0% Q2 2011 Q2 2012 H1 2011 H1 2012• Home & Garden accounted for 15% of total Group Net Sales Operating profit Operating margin sales in Q2 and 15% YTD No. of website visits (’000) No. of orders (’000)• Operating profit of SEK -3.4 (0.6) mn in Q2 and of SEK 3 000 +286% 60 +288% -9.3 (0.7) mn YTD 2 500 50 • Operating margins of -2.3% (1.3%) in Q2 and of -3.2% (1.5%) YTD 2 000 40 • The segment’s operating margin was affected by the 1 500 30 Nordic expansion and broadening of the assortment in both companies, but also by strong pressure on price 1 000 20 in the white goods category 500 10 0 0 Q2 2011 Q2 2012 Q2 2011 Q2 2012 9
  • Financial Performance & Position 10
  • Income Statement• Net interest & other financial items of 2012 2011 2012 2011 SEK -5.0 (-4.0) mn in Q2 reflected: (SEK million) Apr-Jun Apr-Jun Jan-Jun Jan-Jun • The Group’s revolving credit facility and Net Sales 952.1 689.1 1,906.4 1,260.9 interests costs related to it Gross profit 109.0 126.4 244.6 236.3 Gross margin (%) 11.4% 18.3% 12.8% 18.7% • Interest costs related to the convertible Operating profit excl non-recurring bond issued in December 2010 -5.8 23.8 -3.9 43.9 items Operating margin% -0.6% 3.5% -0.2% 3.5%• Positive income tax effect of SEK 11.4 Operating profit incl non-recurring -43.5 19.1 -55.6 39.2 (-4.7) mn in the quarter as a result of items Operating margin% -4.6% 2.8% -2.9% 3.1% activated capitalized loss carryforwards Income before tax -48.5 15.1 -66.0 31.8 Net income -37.1 10.4 -50.1 23.1 Basic earnings per share (SEK) -0.54 0.16 -0.72 0.35 Diluted earnings per share -0.54 0.16 -0.72 0.35 11
  • Cash Flow• Cash flow from operating activities before 2012 2011 2012 2011 (SEK million) Apr-Jun Apr-Jun Jan-Jun Jan-Jun changes in working capital of SEK -50.0 Cash flow from operating (18.0) mn in Q2 activities -50.0 18.0 -82.8 20.2 Changes in working capital 4.1 62.3 -197.7 -101.7• SEK 4.1 (62.3) million change in working Cash flow from operations -46.0 80.4 -280.5 -81.6 capital in Q2 Cash flow from/to investing -14.7 -318.6 -26.7 -326.0 activities• Cash flow to investing activities of SEK Cash flow from/to financing 0.0 185.5 0.0 185.5 14.7 (318.6) mn in Q2 activities • Primarily reflected investments in the Change and cash equivalents for -60.6 -52.8 -307.2 -222.0 Group’s web platforms the period Cash and cash equivalents at the 170.7 261.3 417.4 431.3 periods start Translation difference 0.3 0.8 0.2 0.0 Cash and cash equivalents at the 110.4 209.3 110.4 209.3 periods end 12
  • Financial Position• Capital employed decreased by SEK 35.2 mn 2012 2011 2011 y/y to SEK 750.6 mn in Q2 (SEK million) 30-jun 30-jun 31-Dec Total non-current assets 616.6 585.4 603.3• Return on capital employed declined y/y to Inventories 532.6 382.4 459.1 4.4% (20.6%) in Q2, which mainly is Total receivables 158.2 110.7 145.6 explained by the lower operating profit Cash and cash equivalents 110.4 209.3 417.4 comparing to last year, acquisition of Tretti Total assets 1,417.9 1,287.9 1,625.3 AB in June 2011 as well as higher inventory Total equity 366.8 376.5 417.3• Total long-term interest bearing borrowings Interest bearing liabilities 413.4 442.6 410.4 of SEK 368.8 (396.4) mn at the end of Q2 Non-interest bearing liabilites 637.7 468.8 797.6 Total equity and liabilities 1,417.9 1,287.9 1,625.3• Net debt position of SEK 258.4 (187.1) mn at the end of Q2, compared to SEK 196.1 at the end of Q1• Cash and cash equivalents decreased to SEK 110.4 (209.3) mn at the end of Q2, compared to SEK 170.7 mn at the end of Q1 13
  • Long-term Ambition and Strategic PrioritiesTo become a leading e-commerce player in each of the Group’s operating marketsegments & territories Market leading in every segment in which we choose to compete Ambition level Grow faster than competitors EBIT margin in line with peers Strategic Priorities Continue Establish Drive growth Secure Pursue M&A roll out Fashion CDON.com in verticals by Operational and Start-ups internationally shopping mall leveraging Excellence into new and existing segments Strategic Enabler Talent 14
  • For further information, please visit www.cdongroup.com orcontact:CDON Group Investor Relations+ 46 (0) 70 080 76 46ir@cdongroup.com Follow us on Twitter: http://twitter.com/#!/cdongroup