Nelly Group — Interim / Quarterly Report 2012

Jul 18, 2012

38% YEAR ON YEAR SALES GROWTH IN THE SECOND QUARTER

CDON Group AB (NASDAQ OMX Stockholm's Mid Cap market: CDON) today announced its financial results for the second quarter and first half of the year, the period 1 January – 30 June 2012.

Second Quarter

• Net sales up 38% year on year to SEK 952.1 (689.1) million and organic growth of 25%*
• Gross profit of SEK 109.0 (126.4) million with a gross margin of 11.4%; when excluding non-recurring items of SEK -33,9 million the gross margin is 15.0%**
• Operating profit of SEK -43.5 (19.1) million and operating margin of -4.6%; when excluding non-recurring items of SEK -37.7 million the operating margin is -0.6%**
• Net income of SEK -37.1 (10.4) million
• Basic earnings per share of SEK -0.54 (0.16)

Half Year

• Net sales up 51% year on year to SEK 1,906.4 (1,260.9) million and organic growth of 33%*
• Gross profit of SEK 244.6 (236.3) million with a gross margin of 12.8%; when excluding non-recurring items of SEK -47.9 million the gross margin is 15.3%**
• Operating profit of SEK -55.6 (39.2) million and operating margin of -2.9%; when excluding non-recurring items of SEK -51.7 million the operating margin is -0.2%**
• Net income of SEK -50.1 (23.1) million
• Basic earnings per share of SEK -0.72 (0.35)

* Excluding Tretti AB for the period Jan-May 2012

** There are non-recurring items of SEK -37.7 million in the Group's result for the second quarter mainly attributed to the Nelly.com warehouse relocation, of which SEK -33.9 million affect the gross profit. The first half of the year also includes further non-recurring costs of SEK -14.0 million of which SEK 7.0 million was attributed to the Nelly.com warehouse relocation and SEK 7.0 million was attributed to Nelly.com's adjusted return offset model.

CEO's statement

Paul Fischbein, President and CEO of CDON Group commented: "The second quarter was another strong growth quarter for CDON Group with a sales increase of 38%. We continue to grow faster than both the traditional retail and online market, thereby strengthening our position in the e-commerce market."

"During the second quarter, we worked intensively to consolidate CDON.com as the leading internet shopping mall in the Nordic region. Tretti.com's assortment of white goods, household appliances and outdoor products were recently added to CDON.com, further strengthening our consumer offering. At the same time we are creating opportunities for other group companies to capitalize on CDON.com's leading market position in the Nordics."

"We performed one of our largest internal reorganisations ever in the period, as we moved the entire Nelly.com warehouse operations. This was a necessary measure that made a considerable impression on the Fashion segment's results in the quarter, both through higher than expected moving costs but also through a decreased growth rate in the period. We have now recruited a new management for the Group's Fashion segment which, combined with our new and more efficient warehouse, makes us a well positioned as we again accelerate our marketing efforts. At the same time we will continue to fine-tune our internal processes."

Forward looking statement

CDON Group operates in a sector with a high underlying market growth. The Group is in an intense growth phase and the strategy is to strengthen its market position through a retained high growth momentum. This includes substantial investments in expansion and in improving the infrastructure to ensure long-term growth,

earnings and customer satisfaction. The objective is to deliver a positive operating result, including nonrecurring items, for the full year. (The Group replaces its previous guidance, which was that "the underlying operating margin, adjusted for expansion, will continue to improve over the previous year").

Significant events during and after the second quarter 2012

Launch of Tretti.com's assortment on CDON.com

On 13 July 2012 CDON.com announced the launch of Tretti.com's assortment of white goods, household appliances and outdoor products on CDON.com. The launch strengthens CDON.com position as the leading internet shopping mall in the Nordic region, simultaneously increasing Tretti.com's reach on the market.

Management changes

The AGM appointed Lars-Johan Jarnheimer as Chairman of the Board of directors on 8 May 2012. On 16 July 2012 CDON Group announced the appointment of Magnus Månsson as new CEO of Nelly.com and head of the Group's Fashion segment.

Nelly.com warehouse relocation

To facilitate the Fashion segment's rapid expansion Nelly.com initiated a warehouse relocation from Borås to Falkenberg during the first quarter 2012. The relocation is now completed and the flow of goods within the fashion segment is integrated.

Launch of Heppo.com in the Netherlands

On 20 June 2012 Heppo.com announced the launch of Heppo.nl in the Netherlands. The launch is the company's first outside the Nordic home markets, where Heppo.com was established in Sweden, Norway, Denmark and Finland in August 2010.

Launch of Nelly.com in the United Kingdom

On 10 April 2012 Nelly.com announced the launch of a localised version of Nelly.com in the United Kingdom as a part of its continued international expansion.

Financial summary

(SEK Million)	2012 Apr-Jun	2011 Apr-Jun	Change (%)	2012 Jan-Jun	2011 Jan-Jun	Change (%)
Net sales	952.1	689.1	38.2%	1,906.4	1,260.9	51.2%
Gross profit	109.0	126.4	-13.8%	244.6	236,3	3.5%
Gross margin (%)	11.4%	18.3%		12.8%	18.7%
Operating profit	-43.5	19.1	-	-55.6	39.2	-
Operating margin (%)	-4.6%	2.8%		-2.9%	3.1%
Net interest & other
financial items	-5.0	-4.0		-10.4	-7.4
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 (SEK)	-0.54	0.16	-	-0.72	0.35	-
Total assets	1,417.9	1,287.9	10.1%	1,417.9	1,287.9	10.1%

Group summary

Group net sales were up 38% year on year in the second quarter and up 51% for the first half of the year. The Group's sites attracted 54.5 (35.6) million visits and generated 1.4 (1.2) million orders during the second quarter, and 113.2 (69.7) million visits and 3.0 (2.5) million orders for the first half of the year.

The Group's gross margin was 11.4% (18.3%) in the quarter and 12.8% (18.7%) for the first half of the year. The decrease in margin is a result of the ongoing shift within the Entertainment segment away from the sale of media products towards growth categories such as consumer electronics. Furthermore, margins were affected by the consolidation of Tretti.com from 3 June 2011, as the company's gross margins are somewhat lower than the Group's average, as well as by the non-recurring cost of SEK -33.9 million, mainly related to Nelly's warehouse relocation during the second quarter and SEK -47.9 million for the first half of the year.

Sales, general and administrative expenses increased by 39% year on year to SEK 150.6 (108.1) million in the quarter and by 50% to SEK 297.9 (198.3) million for the first half of the year, which mainly reflected the higher sales volumes from both existing and new segments.

The Group reported an operating profit of SEK -5.8 (23.8) million in the quarter with an operating margin of -0.6% (3.5%) excluding one-off items and an operating profit of SEK -43.5 (19.1) million including non-recurring items with an operating margin of -4.6% (2.8%). The operating profit for the first half of the year was SEK -3.9 (44.0) million with an operating margin of -0.2% (3.5%) excluding non-recurring items and an operating profit of SEK -55.6 (39.2) million including non-recurring items with an operating margin of -2.9% (3.1%).

The Group´s net interest and other financial items amounted to SEK -5.0 (-4.0) million in the second quarter and SEK -10.4 (-7.4) million for the first half of the year, which primarily reflected the interest costs related to the convertible bond, as well as the Group´s revolving credit facility.

Group pre-tax profits amounted to SEK -48.5 (15.1) million in the second quarter and SEK -66.0 (31.8) million for the first half of the year. The Group reported a positive income tax effect of SEK 11.4 (-4.7) million in the quarter and 15.9 (-8.8) million for the first half of the year, as a result of capitalised loss carry forwards. Group consolidated net income therefore totalled SEK -37.1 (10.4) million in the quarter and SEK -50.1 (23.1) million for the first half of the year.

Development per segment

Entertainment

(SEK Million)	2012 Apr-Jun	2011 Apr-Jun	Change (%)	2012 Jan-Jun	2011 Jan-Jun	Change (%)
Net sales	464.1	365.8	26.9%	948.3	727.0	30.4%
Operating profit	11.8	9.9	20.1%	36.0	28.1	28.2%
Operating margin (%)	2.6%	2.7%		3.8%	3.9%

The Entertainment segment comprises the online stores CDON.com, BookPlus.fi and Lekmer.com. The segment's sales were up 27% year on year in the quarter and up 30% year to date. The segment accounted for 49% (53%) of total Group sales in the second quarter and 50% (58%) of total Group sales for the first half of the year.

The consumer electronics category continued to grow at a high rate and constituted a larger share of the segment's sales than previously. The growth in the toys category was strong in the period while the development of media products has been somewhat slower than in the first quarter.

The assortment has continuously been expanded within the consumer electronics and toys categories, and in the second quarter CDON.com launched its own brand in the gaming PC category. After the reporting period CDON.com added Tretti.com's assortment of white goods, household appliances and outdoor products, thereby strengthening the position as the leading online shopping mall in the Nordic region.

The segment's operating profit improved by 20% in the second quarter and by 28% for the first half of the year. The shift from media to consumer electronics has been somewhat faster than expected during the quarter, which puts pressure on gross margin in the period. The fixed costs to sales ratio continued to decline on which the fall in gross margin only had a minor effect on the overall operating margin in the period.

Fashion

(SEK Million)	2012 Apr-Jun	2011 Apr-Jun	Change (%)	2012 Jan-Jun	2011 Jan-Jun	Change (%)
Net sales	225.9	184.4	22.5%	422.3	295.9	42.7%
Operating profit	-57.5	8.3	-	-96.1	3.9	-
Operating margin (%)	-25.5%	4.5%		-22.8%	1.3%

The Fashion segment comprises the online stores Nelly.com, Heppo.com and Members.com. The segment sales were up 23% year on year in the quarter and 43% year to date. The segment accounted for 24% (27%) of total Group sales in the quarter and 22% (24%) for the first half of the year.

The growth was a combination of increased market shares for Nelly.com in the Nordic markets, the geographical expansion of Nelly.com outside the Nordic countries and the growth of Members.com and Heppo.com. In the second quarter a local version of Nelly.com was launched in the United Kingdom and Heppo.com was launched in the Netherlands. In the second quarter Nelly.com completed the warehouse relocation which is crucial for its continued expansion. The relocation contributed to the slower growth in the period partly due to a large proportion of the assortment temporarily not being available for sale.

The warehouse relocation was the main reason to the non-recurring items of SEK 37.7 million that was charged to the Fashion segment's operating profit in the quarter. The decreased growth also contributed to a negative impact on earnings in the quarter. The move is now completed and Nelly.com is expected to reach full warehouse efficiency by the end of in the third quarter. The segment accrued costs of SEK 11.4 million in the second quarter related to the geographical expansion of Nelly.com and Heppo.com outside the Nordic region. Overall, the geographical expansion brought costs of SEK 31.9 million, while non-recurring items amounted to SEK 51.7 million during the first half of the year.

(SEK Million)	2012 Apr-Jun	2011 Apr-Jun	Change (%)	2012 Jan-Jun	2011 Jan-Jun	Change (%)
Net sales	116.4	90.0	29.3%	244.0	186.7	30.7%
Operating profit	10.9	9.6	13.7%	24.3	20.4	18.7%
Operating margin (%)	9.4%	10.7%		9.9%	11.0%

Sports & Health

The Sports & Health segment comprises the online stores Gymgrossisten.com (Fitnesstukku.fi in Finland, Bodystore.dk in Denmark and Bodystore.de in Germany) as well as the Swedish site Bodystore.com. The segment's sales were up 29% year on year in the quarter and 31% year to date. The segment accounted for 12% (13%) of total Group sales in the quarter and 13% (15%) for the first half of the year.

The strong sales growth continued in the second quarter and the assessment is now that the company has established itself as market leader also in Norway and Denmark. The launch on the German market has gone according to plan and the product assortment is expanding daily.

The segment's operating profit increased by 14% year on year in the quarter and by 19% during the first half of the year, despite investments in the new markets.

Home & Garden

(SEK Million)	2012 Apr-Jun	2011 Apr-Jun*	Change (%)	2012 Jan-Jun	2011 Jan-Jun*	Change (%)
Net sales	146.1	48.9	198.5%	292.4	51.4	469.1%
Operating profit	-3.4	0.6	-	-9.3	0.7	-
Operating margin (%)	-2.3%	1.3%		-3.2%	1.5%

* 2011 figures for the Home & Garden segment comprises Room21 from February 2011 and Tretti from June 2011

The Home & Garden segment comprises the online-stores Tretti.com and Room21.com. The segment sales accounted for 15% of total Group sales for the quarter and 15% for the first half of the year.

The segment continued to invest in all markets and gained market shares in their respective categories. The growth was primarily derived from markets outside Sweden as well as an expanded assortment. After the period Tretti.com launched its range of white goods, household appliances and outdoor products for sale through CDON.com, which further increases its visibility and reach on the Nordic e-commerce market.

The segment's operating margin was affected by the Nordic expansion and broadening of its assortment in both companies, but is also a result of strong pressure on prices in the white goods category.

Financial position

Group total assets grew by 10% year on year to SEK 1,417.9 (1,287.9) million. At the end of the first quarter 2012, the Groups total assets amounted to SEK 1,435.6 million.

Inventory levels increased year on year to SEK 532.6 (382.4) million in the period, compared to SEK 509.6 million at the end of the first quarter 2012. The increase reflected the higher proportion of Group sales generated from the Fashion segment which is more inventory intensive, the expansion of the Group's product categories and assortment, e.g. consumer electronics within the Entertainment segment.

The Group reported a SEK 4.1 (62.3) million change in working capital in the quarter and SEK -197.7 (-101.7) million for the six month period. Capital employed decreased by SEK 35.2 million, to SEK 750.6 million in the quarter. The Group's rolling twelve-month return on capital employed declined year on year to 4.4% (20.6%) in the quarter, which mainly is explained by the lower operating profit compared to last year, the acquisition of Tretti AB in June 2011 as well as higher inventory due to the fact that the more inventory intensive segments are increasing their share of total Group sales.

Group cash flow to investing activities amounted to SEK -14.7 (-318.6) million in the quarter and SEK -26.7 (-326.0) million for the first half of the year, which primarily reflected investments in the Group's web platforms. In June, the Group paid an agreed deferred payment of SEK 3.9 million and an additional payment of SEK 1.1 million for the acquisition of Rum21 AB.

Group cash flow from financing activities amounted to SEK 0.0 (185.5) million in the quarter and SEK 0.0 (185.5) million for the first half of the year.

The Group's total interest-bearing loans amounted to SEK 368.8 (396.4) million at the end of the period compared to SEK 366.8 million at the end of the first quarter 2012. The decrease is primarily related to a loan amortization in the third quarter 2011.

The Group has taken up an overdraft facility of SEK 100.0 million in the quarter of which SEK 0.0 million was used at the end of the period.

The Group's cash and cash equivalents decreased by SEK -60.3 (-52.0) million to SEK 110.4 (209.3) million at the end of the quarter, compared to SEK 170.7 million at the end of the first quarter 2012. The Group therefore had a net debt position (defined as long term interest-bearing liabilities and short term interest bearing loans less cash and cash equivalents) of SEK 258.4 (187.1) million at the end of the reporting period, compared to SEK 196.1 million at the end of the first quarter 2012.

Parent company

The CDON Group parent company reported sales of SEK 14.5 (11.6) million in the second quarter and SEK 27.9 (19.6) million for the first half of the year. The parent company's cash and cash equivalents amounted to SEK 95.8 (155.4) million at the end of the period.

The parent company invested SEK 0.0 (345.4) million in non-current assets during the quarter and SEK 0.5 (359.6) for the first half of the year.

In June, the parent company paid an agreed deferred payment of SEK 3.9 million and an additional cash consideration of SEK 1.1 million for the acquisition of Rum21 AB.

Accounting policies

This report has been prepared in accordance with 'IAS 34 Interim Financial Reporting' and the 'Annual Accounts Act'. The interim report for the parent company has been prepared in accordance with the 'Annual Accounts Act'. The accounting policies in the Group's consolidated financial statements and the parent company's financial statements have been prepared according to the same accounting policies and calculation methods as the 2011 annual accounts.

Risks and uncertainties

Several factors could affect CDON Group's earnings and operations, most of which can be managed through internal procedures but some of which are controlled by external factors. Risks and uncertainties include IT and control systems, suppliers, seasonal variations and currencies, new market entries, changes in market conditions, and changes in e-commerce spending behaviour. The parent company is also subject to interest rate risks. The 2011 Annual Report contains a more comprehensive description of the risks and uncertainty factors affecting the Group in the Management Report and in Note 20.

Related party transaction

Related party transactions for the period are of the same character and amounts as the transactions described in the 2011 Annual Report.

Other information

Third Quarter 2012 Financial Results CDON Group's results for the third quarter and first nine months ending 30 September 2012 will be published on 17 October 2012.

This report has not been reviewed by the Group's auditor.

The Board of Directors and CEO declare that the six-month interim report provides a fair overview of the parent company's and group's operations, their financial position and performance, and describes material risks and uncertainties facing the parent company and other companies in the group.

18 July 2012

Lars-Johan Jarnheimer Chairman of the Board

Mia Brunell Livfors Board member

Paul Fischbein President & CEO Lars Nilsson

Board member

Mengmeng Du Board member

Henrik Persson Board member

Florian Seubert Board member

CDON Group AB Bergsgatan 20 Box 385 SE-201 23 Malmö Corporate ID number: 556035-6940

The company will host a conference call today at 15.00 Stockholm time, 14.00 London time and 09.00 New York time.

To participate in the conference call, please dial:
Sweden:	+46 (0)8 587 694 45
International:	+44 (0)20 336 453 81
US:	+1 646 254 33 61

The access pin code for the conference call is 7947471. To listen to the conference call online, please go to www.cdongroup.com.

***

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

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

Press, Investor and analysts enquiries: Fredrik Bengtsson, Head of Communications Phone: +46 (0) 700 80 75 04 E-mail: press@cdongroup.com, ir@cdongroup.com

About CDON Group

CDON Group is the leading e-commerce group in the Nordic region. Established in 1999, the Group has continuously expanded its product portfolio and is now a leading e-commerce player in the Entertainment

(CDON.COM, BookPlus.fi and Lekmer.com), Fashion (Nelly.com, Heppo.com and Members.com), Sport & Health (Gymgrossisten.com and Bodystore.com) and Home & Garden (Tretti.com and Room21.com) segments. CDON Group's ten online stores attract approximately 172 million site visits and two million unique customers on a yearly basis.

The information in this announcement is that which CDON Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 13:00 CET 18 July 2012.

CONDENSED CONSOLIDATED	2012	2011	2012	2011	2011
INCOME STATEMENT (SEK million)	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
Net sales	952.1	689.1	1,906.4	1,260.9	3,403.7
Cost of goods and services	-843.1	-562.7	-1,661.9	-1,024.6	-2,816.4
Gross profit	109.0	126.4	244.6	236.3	587.3
Sales and administration expenses	-150.6	-108.1	-297.9	-198.3	-458.8
Other operating income and expenses, net	-1.8	0.8	-2.2	1.2	0.7
Operating profit	-43.5	19.1	-55.6	39.2	129.2
Net interest & other financial items	-5.0	-4.0	-10.4	-7.4	-18.2
Profit before tax	-48.5	15.1	-66.0	31.8	111.0
Tax	11.4	-4.7	15.9	-8.8	-28.0
Net income for the period	-37.1	10.4	-50.1	23.1	83.0
EBITDA	-40.0	21.3	-48.9	43.4	139.7
Attributable to:
Equity holders of the parent	-35.7	10.5	-47.7	23.3	83.3
Non-controlling interests	-1.4	-0.1	-2.5	-0.2	-0.3
Net income for the period	-37.1	10.4	-50.1	23.1	83.0
Basic earnings per share (SEK)*	-0.54	0.16	-0.72	0.35	1.26
Diluted earnings per share (SEK)*	-0.54	0.16	-0.72	0.35	1.26

* 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 periods has been calculated on the average number of outstanding shares after dilution for the periods, amounting to 72,921,071.

CONDENSED (SEK million)	2012 Apr-Jun	2011 Apr-Jun	2012 Jan-Jun	2011 Jan-Jun	2011 Jan-Dec
Profit for the period	-37.1	10.4	-50.1	23.1	83.0
Other comprehensive income
Translation difference for the period	-0.3	0.4	-0.7	0.2	-3.3
Other comprehensive income for the period	-0.3	0.4	-0.7	0.2	-3.3
Total comprehensive income for period	-37.4	10.8	-50.8	23.3	0.1
Total comprehensive income attributable to:
Parent company shareholders	-36.0	10.9	-48.3	23.6	87.6
Non-controlling interests	-1.4	-0.1	-2.5	-0.2	-0.6
Total comprehensive income for the period	-37.4	10.8	-50.8	23.3	87.0

Shares outstanding at period's end	66,342,124	66,342,124	66,342,124	66,342,124	66,342,124
Shares outstanding at period's end, incl convertible	72,921,071	72,921,071	72,921,071	72,921,071	72,921,071
Average number of shares, basic	66,342,124	66,342,124	66,342,124	66,342,124	66,342,124
Average number of shares, diluted	72,921,071	72,921,071	72,921,071	72,921,071	72,921,071

CONSOLIDATED STATEMENT OF FINANCIAL	2012	2011	2011
POSITION CONDENSED (SEK million)	30-Jun	30-Jun	31-Dec
Non-current assets
Goodwill	446.5	447.3	447.0
Other intangible assets	153.2	127.5	138.0
Total intangible assets	599.7	574.8	584.9
Financial non-current assets	1.6	1.8	1.6
Tangible non-current assets	9.3	8.8	10.8
Deferred tax asset	6.0	0.0	6.0
Total non-current assets	616.6	585.4	603.3
Current assets Inventories	532.6	382.4	459.1
Current interest-bearing receivables	0.0	0.0	0.0
Current non-interest-bearing receivables	158.2	110.7	145.6
Total receivables	158.2	110.7	145.6
Cash and cash equivalents	110.4	209.3	417.4
Total current assets	801.2	702.5	1,022.1
Total assets	1,417.9	1,287.9	1,625.3
Equity
Equity attributable to owners of the parent	367.8	369.2	415.8
Non-controlling interest	-1.0	7.3	1.4
Total equity	366.8	376.5	417.3
Non-current liabilities
Non interest bearing
Deferred tax liability	39.6	41.4	40.8
Other provisions	5.0	4.7	4.9
Interest bearing
Long term loans	0.0	185.5	150.0
Convertible bond	218.8	210.9	214.8
Total non-current liabilities	263.4	442.6	410.4
Current liabilities
Short term interest bearing loans	150.0	0.0	0.0
Current interest-bearing liabilities	15.0	0.0	15.0
Current non-interest-bearing liabilities Total current liabilities	622.7	468.8	782.6
	787.7	468.8	797.6
Total equity and liabilities	1,417.9	1,287.9	1,625.3

CONSOLIDATED STATEMENT OF CASH FLOWS CONDENSED (SEK million)	2012 Apr-Jun	2011 Apr-Jun	2012 Jan-Jun	2011 Jan-Jun	2011 Jan-Dec
Cash flow from operating activities	-50.0	18.0	-82.8	20.2	124.3
Changes in working capital	4.1	62.3	-197.7	-101.7	71.6
Cash flow from operations	-46.0	80.4	-280.5	-81.6	195.9
Investments in subsidiaries Investments in other non-current assets	-4.9	-317.5	-4.9	-322.8	-323.9
Cash flow to/from investing activities	-9.8 -14.7	-1.2 -318.6	-21.8 -26.7	-3.2 -326.0	-21.9 -345.8
Other cash flow from/to financing activities Cash flow to/from financing activities	0.0 0.0	185.5 185.5	0.0 0.0	185.5 185.5	136.2 136.2
Change and cash equivalents for the period	-60.6	-52.8	-307.2	-222.0	-13.8
Cash and cash equivalents at period's start Translation difference, cash and cash equivalents Cash and cash equivalents at period's end	170.7 0.3 110.4	261.3 0.8 209.3	417.4 0.2 110.4	431.3 0.0 209.3	431.3 -0.1 417.4

STATEMENT OF CHANGES IN EQUITY	2012	2011	2011
CONDENSED (SEK million)	30-Jun	30-Jun	31-Dec
Opening balance	417.3	346.5	346.5
Profit for the period	-50.1	23.1	83.0
Other comprehensive income	-0.7	0.2	-0.2
Effects of long term incentive program	0.3	0.1	0.3
New share issue	0.6	0.4	0.4
Repurchased own shares	-0.6	-0.4	-0.4
Acquisition of non-controlling interests with a change in control	-	6.6	1.5
Acquisition of shares from non-controlling interests without a change in control	-	-	-13.8
Closing balance	366.8	376.5	417.3

SEGMENT REPORTING

NET SALES	2011	2011	2011	2011	2011	2012	2012	2012
(SEK million)	Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec	Full year	Jan-Mar	Apr-Jun	Jan-Jun
Entertainment	361.2	365.8	429.8	772.1	1,928.9	484.3	464.1	948.3
Fashion	111.5	184.4	157.2	275.1	728.2	196.4	225.9	422.3
Sport & Health	96.7	90.0	93.4	97.1	377.1	127.6	116.4	244.0
Home & Garden	2.4	48.9	146.0	172.1	369.5	146.3	146.1	292.4
Total operational business areas	571.8	689.1	826.4	1,316.4	3,403.8	954.6	952.5	1,907.1
Group central operations	8.0	11.6	8.6	14.1	42.4	13.4	14.5	27.9
Eliminations	-8.0	-11.6	-8.6	-14.1	-42.4	-13.7	-14.9	-28.6
CONSOLIDATED TOTAL	571.8	689.1	826.4	1,316.4	3,403.7	954.3	952.1	1,906.4
Intersegment sales Entertainment	0.0	-	-	-	0.0	-	-	-
Fashion	-	-	-	-	-	-	-	-
Sport & Health	-	-	-	-	-	0.0	0.0	0.0
Home & Garden	-	-	-	-	-	0.2	0.4	0.6
Group central operations	7.9	11.6	8.6	14.1	42.3	13.4	14.5	27.9
Total	8.0	11.6	8.6	14.1	42.4	13.7	14.9	28.6
OPERATING PROFIT	2011	2011	2011	2011	2011	2012	2012	2012
(SEK million)	Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec	Full year	Jan-Mar	Apr-Jun	Jan-Jun
Entertainment	18.2	9.9	23.7	50.5	102.3	24.1	11.8	36.0
Fashion	-4.4	8.3	2.3	13.5	19.8	-38.5	-57.5	-96.1
Sport & Health	10.8	9.6	9.0	10.3	39.7	13.3	10.9	24.3
Home & Garden	0.1	0.6	3.3	1.2	5.3	-5.9	-3.4	-9.3
Total operational business areas	24.8	28.4	38.4	75.5	167.1	-7.0	-38.2	-45.2
Group central operations	-4.6	-9.3	-19.8	-4.1	-37.8	-5.1	-5.3	-10.4
CONSOLIDATED TOTAL	20.1	19.1	18.7	71.3	129.2	-12.1	-43.5	-55.6

PARENT COMPANY INCOME STATEMENT	2012	2011	2012	2011	2011
CONDENSED (SEK million)	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
Net Sales	14.5	11.6	27.9	19.6	42.4
Gross profit	14.5	11.6	27.9	19.6	42.4
Administration expenses	-19.8	-16.2	-38.4	-28.2	-61.9
Operating profit	-5.3	-4.6	-10.4	-8.6	-19.6
Net interest & other financial items	-3.7	-3.8	-6.6	-6.5	-12.6
Group contribution received	0.0	0.0	0.0	0.0	124.0
Group contribution paid	0.0	0.0	0.0	0.0	-16.0
Change in excess depreciation	0.0	0.0	0.0	0.0	0.0
Profit before tax	-8.9	-8.3	-17.0	-15.1	75.8
Tax	2.4	2.0	4.5	3.8	-20.1
Net income for the period	-6.6	-6.3	-12.5	-11.3	55.7
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME CONDENSED (SEK million)
Profit for period	-6.6	-6.3	-12.5	-11.3	55.7
Other comprehensive income	0.0	0.0	0.0	0.0	0.0
Total comprehensive income for period	-6.6	-6.3	-12.5	-11.3	55.7

PARENT COMPANY STATEMENT OF FINANCIAL POSITION	2012	2011	2011
CONDENSED (SEK million)	30-Jun	30-Jun	31-Dec
Non-current assets
Shares and participating interests	684.3	639.9	683.9
Equipment	0.0	0.0	0.0
Total non-current assets	684.3	640.0	683.9
Current assets
Current interest-bearing receivables	181.9	38.2	17.7
Current non-interest-bearing receivables	138.4	11.2	131.5
Cash and cash equivalents	95.8	155.4	356.3
Total current assets	416.2	204.8	505.5
Total assets	1,100.5	844.8	1,189.4
Equity
Restricted equity
Unrestricted equity	134.4	133.9	133.9
Total equity	259.0 393.5	204.6 338.5	271.8 405.7
Non-current liabilities
Convertible bonds	218.8	210.9	214.8
Interest-bearing liabilities	0.0	185.5	150.0
Deferred tax liability	8.2	10.3	9.3
Provisions	5.0	4.7	4.9
Total non-current liabilities	232.0	411.4	378.9
Current liabilities
Short term interest bearing loans	150.0	0.0	0.0
Other interest-bearing liabilities	296.8	69.2	344.7
Non-interest-bearing liabilities	28.2	25.7	60.0
Total current liabilities	475.0	94.9	404.8
Total equity and liabilities	1,100.5	844.8	1,189.4

KEY RATIOS

KEY RATIOS	2011 Jan-Mar	2011 Apr-Jun	2011 Jul-Sep	2011 Oct-Dec	2011 Full year	2012 Jan-Mar	2012 Apr-Jun	2012 Jan-Jun
GROUP
Sales growth (%)	21.7	50.6	60.9	71.2	54.0	66.9	38.2	51.2
Change in operating expenses (%)	27.8	65.3	66.8	49.7	59.6	63.4	39.3	50.3
Operating margin (%)	3.5	2.8	2.3	5.4	3.8	-1.3	-4.6	-2.9
Gross profit margin (%)	19.2	18.3	14.7	17.4	17.3	14.2	11.4	12.8
Return on capital employed (%)	27.0	20.6	15.8	18.7	18.7	13.1	4.4	4.4
Return on equity (%)	35.4	24.1	17.5	22.0	22.0	15.0	3.2	3.2
Equity/assets ratio (%)	38.4	29.2	28.9	25.7	25.7	28.1	25.9	25.9
Net debt (SEK million)	-52.2	187.1	242.3	-37.6	-37.6	196.1	258.4	258.4
Cash flows from operations (SEK million)	-161.9	80.4	-28.4	304.7	194.7	-234.5	-46.0	-280.5
Earnings per share (SEK)*	0.19	0.16	0.18	0.73	1.26	-0.18	-0.54	-0.72
Equity per share (SEK)*	5.43	5.68	5.86	6.29	6.29	6.09	5.53	5.53
Depreciation/Net sales (%)	0.3	0.3	0.4	0.2	0.3	0.3	0.4	0.4
Capital Expenditure/Net sales (%)	0.4	0.2	1.2	0.6	0.6	1.3	1.0	1.1
No. of visits (thousand)	34,092	35,611	41,289	60,765	171,758	58,679	54,532	113,211
No. of orders (thousand)	1,250	1,235	1,358	2,151	5,996	1,579	1,437	3,017
Average shopping basket (SEK)	438	536	588	587	546	581	643	611
Entertainment
No. of visits (thousand)	18,864	16,061	18,991	27,519	81,436	22,305	19,565	41,869
No. of orders (thousand)	935	818	954	1,494	4,201	1,048	868	1,916
Average shopping basket (SEK)	363	424	429	484	433	436	508	469
Fashion
No. of visits (thousand)	12,848	16,814	17,892	27,426	74,980	30,292	29,292	59,584
No. of orders (thousand)	173	271	224	445	1,113	296	356	652
Average shopping basket (SEK)	643	657	686	608	641	644	628	635
Sport & Health
No. of visits (thousand)	2,380	2,036	2,207	2,863	9,486	3,497	2,979	6,476
No. of orders (thousand)	142	132	129	142	545	180	158	338
Average shopping basket (SEK)	681	679	723	688	692	703	733	717
Home & Garden
No. of visits (thousand)	170	699	2,199	2,958	5,856	2,585	2,696	5,281
No. of orders (thousand)	2	14	51	71	136	56	55	110
Average shopping basket (SEK)	2,056	3,377	2,781	2,450	2,696	2,574	2,625	2,599

* Earnings per share for the periods Jan-Dec 2011 and Jan-Jun 2012 have been calculated on the average number of outstanding shares for the periods, amounting to 66,342,124.

Definitions

Equity/assets ratio Net debt (+) / Net cash (-)	Equity plus non-controlling interests as a percentage of total assets. Interest-bearing liabilities less interest-bearing current and non-current assets and cash and cash equivalents.
No. of visits	Gross number of visits to the Groups online stores.
Return on equity	Net income for the last four quarters as a percentage of average equity for the last four quarters.
Return on capital employed	Operating income for the last four quarters as a percentage of average of total non-current assets, cash and cash equivalents, and net working capital reduced for provisions, for the last four quarters
Earnings per share	Earnings for the year attributable to the parent company's shareholders divided by average number of shares.
Equity per share	Equity attributable to the parent company's shareholders divided by average number of shares.
Capital Expenditure/Net Sales	Investments in tangible non-current assets divided by Net sales for the period.