Qliro publ : Interim report for January 1 – March 31, 2020

Interim report for January 1 - March 31, 2020

CDON'S EXTERNAL MERCHANTS GREW 101 PERCENT,

NELLY GREW WITH LOWER MARGINS AND

QLIRO INCREASED REVENUES AND VOLUMES

FIRST QUARTER

• Net sales amounted to SEK 591.5 (652.9) million
• • The subsidiary Qliro AB increased the loan book by 38 percent and total operating income by 12 percent
  • CDON increased total gross sales by 17 percent and external merchant's sales by 101 percent
  • Nelly increased net sales by 6 percent in the Nordic countries and total sales by 1 percent, in line with the transition to a Nordic focus
• The gross margin was 25.6 (26.7) percent
• Operating profit before depreciation and amortization amounted to SEK -32.6(-6.2) million
• • Qliro AB's operating profit before depreciation, amortization and impairment amounted to SEK 3.5
    (14.3) million, impacted by growth investments, the listing process, and provisions for future credit losses due to changed assumptions about the macro economic situation as a result of Covid-19
  • CDON's gross margin increased by 7.0 percentage points to 23.8 (16.8) percent and its operating profit before depreciation and amortization amounted to SEK -0.6(-5.7) million
  • Nelly's gross margin decreased with 6.9 percentage points to 15.9 (22.8) percent and its operating profit before depreciation and amortization amounted to SEK -20.2(-3.2) million after sales campaigns in a very weak market affected by Covid-19
• Operating profit amounted to SEK -76.4(-33.5) million
• Profit after tax amounted to SEK -76.6(-44.3) million
• Basic and diluted earnings per share amounted to SEK -0.51(-0.30)
• The ambition to unbundle the Group remains, but the process is delayed due to the current market situation

	2020	2019
SEK million	Jan-Mar	Jan-Mar
Net sales	591.5	652.9
Gross profit	151.6	174.6
Gross margin (%)	25.6%	26.7%

Operating profit before depreciation, amortization and impairment

Operating margin before depreciation, amortization and impairment, %

-32.6-6.2

-5.5%-0,9%

Operating profit	-76.4	-33.5
Operating margin (%)	-12.9%	-5.1%

Operations are recognized including the effects of IFRS 16. Some revenue has been reclassified since Q4 2019 from interest income to commission income in Qliro AB, and commission income is now included in consolidated net sales. The comparative figures have been adjusted by SEK 13.1 million for the quarter.

Interim report for the first quarter 2020

ADVANCING MARKET POSITIONS IN ALL SUBSIDIARIES

Subsidiary Qliro AB is ready for listing

Qliro AB is well established as a financial services provider to e-merchants and consumers in the Nordics. The company increased its loan book by 38 percent compared to the same quarter last year to more than SEK 2 billion. Total operating income rose by 12 percent to SEK 96 million. Volumes increased by 12 percent driven by merchant's growth and the onboarding of new merchants. Following Corona-19, the Swedish regulator has changed the capital adequacy requirements meaning that Qliro´s capital requirements has decreased.

CDON's external merchants increased sales by more than 100 percent

CDON has strong momentum and, in the last quarter, a total of 100 new merchants joined the platform, bringing the total number of merchants to 1 100. The external merchants more than doubled their sales and the total gross sales grew by 17 percent. The gross margin increased by as much as 7 percentage points and inventory levels decreased by 53 percent in the quarter. CDON is a clear winner in the acceleration of the digital commerce.

Nelly grew in the Nordic countries

Nelly increased its sales by 6 percent in its core Nordic markets and by 1 percent in total for the quarter. This was achieved even though the total fashion market in Sweden fell by 39 percent in March according to the Swedish Trade Federation. As previously announced, we have initiated a restructuring of the operations to focus on the Nordic market. This is expected to have a negative effect on overall growth during the year, but a positive effect on profitability.

During the quarter, Nelly prioritized customer recruitment and sales over margins. We have also implemented several cost-saving measures, such as a reduction in the administrative organization of about 25 positions and a program of short-term employment in Borås, where work hours were reduced by 20 percent over three months. The company has a strong position and has gained market share during the quarter, which will be useful in the coming quarters. Kristina Lukes has joined as new CEO.

Qliro Group's future operations

Our three subsidiaries advanced their market positions during the quarter. Nelly is one of the Nordic countries' strongest fashion brands for young women and has maintained growth in a rapidly shrinking market. Qliro AB has a strong position and shows growth in volume and revenue. A listing would provide the company with a good basis for future growth, including access to the capital market. CDON has established itself as the leading Nordic marketplace with a proven scalable model and limited capital requirements. In many respects, the company has exceeded expectations and is ripe for growth outside Qliro Group.

We remain determined to unbundle Qliro Group. The main plan is, as before, to list Qliro AB separately, distribute CDON to Qliro Group's shareholders and to retain Nelly as the only continuing operation in Qliro Group, which may eventually change its name to Nelly Group. The split up was planned to be completed during the first half of the year, but the process has been delayed by the current market situation.

Marcus Lindqvist

President and CEO

Stockholm, April 21, 2020

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Interim report for the first quarter 2020

QLIRO AB INCREASED REVENUES AND VOLUMES

	2020		2019
SEK million	Jan-Mar		Jan-Mar
Interest income	58.1		43.0	35%
Interest expense	-8.8		-6.2	41%
Net interest income	49.3		36.8	34%
Net commission income	45.3		48.6	-7%
Other operating income	1.9		0.6	242%
Total operating income	96.4		86.0	12%
Operating expenses excluding depreciation, amortization	-63.3		-57.8	9%
and impairment
Depreciation, amortization and impairment	-22.2		-11.8	88%
Total operating expenses	-85.4		-69.6	23%
Operating profit before credit losses	11.0		16.4	-33%
Net credit losses	-29.6		-13.9	114%
Operating profit	-18.6		2.5
Operating profit before depreciation, amortization and	3.5		14.3	-75%
impairment
Net lending to the public (loan book)	2,044		1,478	38%
of which Payment Services	1,233		1,055	17%
of which personal loans, Digital Banking Services	812		423	92%
External financing	2,085		1,384	51%
of which deposits from the public1	1,638		962	70%
of which secured credit facility	347		422	-18%
of which bond loans	100		0
Payment Services
Business volume handled, pay after delivery (PAD)	1,231		1,089	13%
Orders, thousands	1,393		1,227	13%
Average shopping basket, SEK	884		887	0%
1Of which accrued interest was SEK 0.0 (3.2) million

Financial services to merchants and consumers

The subsidiary Qliro AB provides digital financial services to merchants and consumers. It is a credit market company under the supervision of the Swedish Financial Supervisory Authority (FI). The strategy is to offer a payment solution to merchants while utilizing transaction volumes and customer relationships to offer digital financial services to consumers. The payment solution ensures that the company's e-merchants offer their customers a better buying experience, secure payments, and financial services.

Qliro AB offers deferred payment for online purchases as part of its payment service, which drives growth in invoicing, partial payments, and installments. This builds up a loan book that generates returns, which are shared with the merchants. Growth in personal loans is driven by digital marketing to existing customers. Over 95 percent of the borrowers had a previous relationship with Qliro AB. The company is gradually expanding its offering of financial services to consumers, partly in partnership with other financial players. In the first quarter, an updated app was launched that facilitates easy handling of payments, loans, and savings. In addition, Qliro's websites were redesigned.

Qliro AB conducts data-driven credit assessments to lend money to consumers with good credit worthiness. Credit assessments are largely automated and based on internal and external data that is analyzed in real time. Business is conducted in the Nordics, which is an attractive market for lending with good access to individual financial information and established credit recovery processes.

The loan book increased by 38 percent

Qliro AB increased its loan book by 38 percent to SEK 2.0 billion with the fastest growth in personal loans. The growth and composition of the loan book is the most important driver of future revenue and earnings. The loan book included SEK 1,233 million attributable to the payment service for e-commerce and related invoices, partial payments, and installments (Payment Solutions segment) and SEK 812 million for personal loans (Digital Banking Services segment).

Connecting new merchants

Business volume increased by 13 percent to SEK 1.2 billion in the quarter, driven by both the growth of existing

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Interim report for the first quarter 2020

merchants and the addition of new merchants. Growth was stronger toward the end of the quarter and the trend has continued into April. At the end of March, 41 merchants were connected, compared to 33 a year ago. In 2019, agreements were entered with more new merchants than in 2017 and 2018 together. They will be connected step by step to the platform and will contribute significant volume and revenue in the coming years. As the new merchants are connected, business volume is expected to increase, driving growth in the loan book which, in turn, will generate interest income.

Income increased

Net interest income increased by 34 percent to SEK 49 (37) million driven by a growing business volumes and lending. Margins for the personal loan portfolio continued to increase. Net interest income consisted of interest income of SEK 58 (43) million and interest expenses of SEK 9 (6) million. The bond loan increased interest expenses compared to last year but gives the company greater financial flexibility. A growing proportion of external financing comes from savings accounts, which cost less than the credit facility.

Net commission income decreased with 7 percent due to changes in the mix of merchants and negative effects of the cap on fees that was implemented in Finland during 2019. Total operating income increased by 12 percent to SEK 97 (86) million. This included SEK 83 million attributable to Payment Solutions and SEK 14 million to Digital Banking Services. Operating expenses excluding depreciation, amortization, and impairment increased by 9 percent, mainly driven by commercial investments, IT development, and recruitment to strengthen Qliro AB prior to its listing. Compared to the fourth quarter of 2019, operating expenses excluding depreciation and amortization decreased. Toward the end of the first quarter, some cost savings were introduced due to the market situation.

The offer to merchants has been broadened into new segments, such as a solution for e-merchants who also have brick and mortar stores, as well as subscription services and digital goods. Qliro is constantly developing its check-out to meet consumer and merchant demand and legal requirements. On July 1, 2020, new regulations will be introduced in Sweden that regulate how credit alternatives should be shown during check- out. The company is adapting its offering to continue to provide a smooth experience for customers and merchants. As the company benefits from e-commerce volume and existing relationships with consumers, marketing costs are limited. Operating profit before depreciation, amortization, and impairment was SEK 4 (14) million.

Increased depreciation and credit losses

Depreciation, amortization, and impairment increased by 88 percent to SEK 22 million as more parts of the technology platform entered service and due to an impact of IFRS 16 that increased the depreciations with SEK 2 million. Net credit losses increased by 114 percent to SEK 30 million, whereof SEK 24 million attributable to Payment Solutions and SEK 5 million to Digital Banking Services. Credit losses were adversely affected by increased provisions of SEK 10 million following assumptions about a weaker future economy in accordance with IFRS 9 accounting principles and increased provisions and impairment of the fair value of a portfolio of overdue receivables as an adjustment to changing market prices. So far, the company has not experienced any deterioration in its customers' capacity to pay.

Capital adequacy and funding

Qliro AB's own funds amounted to SEK 360 million, its total risk exposure to SEK 2 195 million and its Common Equity Tier 1 capital ratio to 14.1 percent of the risk exposure as of March 31, 2020. During the quarter, the capital adequacy requirement was reduced by approximately SEK 50 million due to reductions in the countercyclical buffer requirements in Sweden, Norway, and Denmark in connection with Covid-19. In addition to equity, lending to the public was financed by SEK 347 (422) million through a secured loan facility, by SEK 1,638 (962) million in deposits from the public (savings accounts) in Sweden and Germany and by SEK 100 (0) million through a bond loan. Of the deposits from the public, 99.5 percent were protected by the deposit guarantee in Sweden. Financing through the loan facility is done in various currencies to match the lending.

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										Interim report for the first quarter 2020
																2,111
															2,070	2,044	1,985
Loans to the public, Payment
Loans to the public, Digital Banking											1,815	1,777
													1,671
Externally financed, credit facility from bank									1,601			812
						1,493	1,478
Externally financed, savings accounts from the public
Million SEK								1,182	1,212
																	1,638
								992
																	1,233
																		347
Q116	Q216	Q316	Q416	Q117	Q217	Q317	Q417	Q118	Q218	Q318	Q418	Q119	Q219	Q319	Q419	Q120

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Interim report for the first quarter 2020

CDON'S EXTERNAL MERCHANTS INCREASED SALES BY MORE THAN 100 PERCENT

SEK million

Gross merchandise value, external merchants Total gross merchandise value1

Net sales

Gross profit

Gross margin, %

Operating profit before depreciation, amortization and impairment

Operating margin before depreciation, amortization and impairment, %

	2020	2019
	Jan-Mar	Jan-Mar
	302.6	150.8	101%
	461.2	394.5	17%

184.2 260.6 -29%

43.9	43.8	0%
23.8%	16.8%
-0.6	-5.7
-0.3%	-2.2%

Operating profit	-15.2	-10.3	48%
Operating margin, %	-8.3%	-3.9%
Investments	-5.9	-7.0	-17%
Opening inventory balance	103.7	176.7	-41%
Closing inventory balance	61.6	131.8	-53%
Active customers, last 12 months, thousands	1,827	1,761	4%
Visits, thousands	23,346	22,574	3%
Orders, thousands	711	687	4%
Average shopping basket, SEK	635	566	12%
1Total of own and external merchants' sales.

CDON is the leading Nordic online marketplace

CDON has further strengthened its position as the leading Nordic online marketplace. Consumers turn to CDON to compare and shop on a common site with millions of products, competitive prices, easy payments, and fast delivery. Merchants join CDON to take advantage of its market position, traffic, and tools to drive sales. This is supplemented by sales from its own inventories in selected categories. The number of products and merchants has increased rapidly in recent years. In the last quarter, a total of 100 new merchants joined the platform, bringing the total number of merchants to 1 100. Currently, over 8.7 million products are offered via CDON.

External merchants doubled sales

The sales of the external merchants increased by 101 percent and the total gross sales grew by 17 percent in the quarter. Commission revenue increased by 52 percent and the gross margin increased by a full 7 percentage points to 24 percent in the quarter. The strong trend has continued into April.

CDON has a modern and flexible technology platform and highly automated processes. The company made efficiency gains and reduced the number of employees, which led to a reduction in employee costs of

24 percent in the quarter.

Operating profit before depreciation, amortization, and impairment was SEK -1(-6) million in the quarter. Due to the upgrading of the company's technical platform, some development expenditures were written off in connection with the commissioning of new functions, which affected earnings by SEK 7 million in the quarter. Inventory levels were 53 percent lower at the end of March compared to the previous year. The company has lowered inventory levels, strengthened cash flow, and reduced working capital requirements.

Growth in gross merchandise value

The number of orders and visits increased during the quarter, influenced by changed consumption. In consumer electronics and media, the company is phasing out sales from its own inventory. This contributed to a decrease in net sales (own sales plus commission income from external merchant sales), of 29 percent to SEK 184 million in the quarter. The proportion of more expensive consumer electronics, however, increased, leading to an increase in the average shopping basket.

The marketplace expanded through the growth of existing and new merchants. Together, external merchant sales and dropshipment accounted for 74 percent of the total gross merchandise value. For full year 2020, the assessment is that the gross merchandise value of the external merchants will continue to increase significantly faster than the target and that the operating margin target will be met.

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Interim report for the first quarter 2020

NELLY GREW WITH LOWER MARGIN

	2020	2019
SEK million	Jan-Mar	Jan-Mar
Net sales	305.3	302.4	1%
Gross profit	48.4	68.8	-30%
Gross margin, %	15.9%	22.8%
Operating profit before depreciation and impairment	-20.2	-3.2
Operating margin before depreciation and impairment, %	-6.6%	-1.1%
Operating profit	-27.1	-12.2
Operating margin, %	-8.9%	-4.0%
Investments	-1.4	-6.5
Opening inventory balance	245.9	241.6	2%
Closing inventory balance	283.4	287.1	-1%
Active customers, last 12 months, thousands	1,278	1,351	-5%
Visits, thousands	27,442	28,307	-3%
Orders before returns, thousands	607	647	-6%
Average shopping basket, SEK	714	711	0%
Percentage of own brands	40%	44%	-4
Return ratio, last 12 months	38%	39%	-1
Product margin	41%	48%	-7
Fulfilment and distribution costs	22%	21%	1

One of the Nordics' strongest fashion brands online

Nelly offers fashion for young women through Nelly.com and for men through NLY MAN. Nelly is one of the most well-known fashion brands online among women aged 18 to 29 in the Nordics. All marketing and sales are done digitally. At its core are its own brands, complemented by a well-composed portfolio of external brands. Nelly has attracted a very enthusiastic target audience. For example, Nelly is the most popular fashion brand among Swedish women aged 20-24.

Nelly grew in a very weak market

Nelly increased its sales by 1 percent in a very weak market. The Swedish Trade Federation reports that fashion sales in brick-and-mortar stores and their e-commerce sites fell by 39 percent in March. Despite this, Nelly's sales increased by 6 percent in the Nordic region during the quarter but declined outside the Nordics in line with previous announcements about focus on the home markets. Sofar in April, sales has not deviated from plan.

The product margin was hampered by a generally high campaign level as well as clearance sales in the very weak market. The product margin decreased to 41 (48) percent, the gross margin to 16 (23) percent and operating profit before depreciation, amortization, and impairment to SEK -20(-3) million. The operating profit was negatively impacted with approximately SEK 10 million due to clearance sales and higher fulfillment costs as a direct consequence of Covid-19.

The inventory turnover increased, and the return rate continued to decline slightly during the quarter.

Nelly implemented cost-saving measures

Nelly reduced the administrative organization with about 25 positions. This led to a non-recurring charge of SEK

2.5 million during the quarter but is estimated to reduce the cost base by approximately SEK 15 million annually. In addition, the company initiated a program of short-term employment that includes the administrative organization in Borås, where work hours have been reduced by 20 percent over three months. Marketing costs were reduced to 8 (10) percent of sales. The action program should have a slightly negative effect on overall growth during the year, but a positive effect on profitability. Kristina Lukas joined as CEO in the end of March.

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Interim report for the first quarter 2020

FINANCIAL TARGETS

Targets and outlooks remain unchanged, but Covid-19 has increased the uncertainty of future outlooks.

Qliro AB's financial targets and outlooks for 2020

Financial targets

• Growth. In the medium term, Qliro AB:s target is to achieve an income growth of 20-25 percent on average per annum.
• Cost. By growing income and increase its operational efficiency, Qliro AB shall become more cost-effective. Qliro AB:s target is to reach a cost to income ratio of 50 percent by 2023.
• Capital. In the medium term, Qliro AB shall remain adequately capitalized to support strong growth opportunities. In the longer term, Qliros target is to maintain capital buffers of at least 150 bps over the regulatory requirements.

Outlook Credit Quality. Qliro AB shall maintain a strong asset quality as the business continues to grow. For the financial year 2020, Qliro AB:s target is a net loan loss level below 1.25 percent of managed PAD volumes (total payment volume with Qliro AB:s own payment methods invoice, and fixed and flexible part payments) and below 2.5 percent of average lending volumes for personal loans.

Profit before tax. Qliro AB has a strong focus on continued fast growth in payment solutions and financial services for consumers. In 2019, the company entered into many new partnerships with merchants which are expected to contribute with significant volumes and income in the years ahead. In the near term, the positive impact on operating profit is however limited as the new merchants are onboarded and volumes gradually build up. As a consequence, it was communicated earlier this year that Qliro AB expected negative earnings before tax for full year 2020, mainly attributable to the first half of the year, until the full effect of new partnerships has materialized.

CDON's financial targets and outlook for 2020

Financial targets

• Achieve a growth rate in external merchants' gross merchandise value above 20 percent per year.
• Achieve an operating margin before depreciation, amortization, and impairment above 3 percent of net sales per year.

Outlook for 2020

For full year 2020, the assessment is that the gross merchandise value of the external merchants will continue to increase significantly faster than the target and that the operating margin target will be met.

Nelly's financial targets and outlook for 2020

Financial targets

• Achieve organic growth in net sales above 10 percent per year.
• Achieve an operating margin before depreciation, amortization, and impairment above 6 percent per year.

Outlook for 2020

Our assessment for the full year 2020 is that net sales will increase, but not in line with the target and that the operating margin before depreciation, amortization and impairment will be 2-4 percent. Growth is somewhat hampered by the transition to the Nordic region, which together with adjustment of the organization is expected to make a positive contribution to profitability.

SIGNIFICANT EVENTS DURING AND AFTER THE END OF THE PERIOD

On January 2, it was announced that Kristina Lukes will become the new CEO of Nelly. Kristina has extensive

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Interim report for the first quarter 2020

international experience in development and change management for fast-moving consumer goods. Most recently she worked for Paulig. Kristina took up her new position at the end of March.

On February 3, it was announced that Nelly would focus its operations on the Nordics, take steps to reduce inventories and eliminate about 25 positions in the administrative organization to have the right foundation for profitable growth.

On February 4, it was announced that Qliro Group would be unbundled according to the previously announced plan. The plan was to list Qliro AB on Nasdaq's main list. A process was also initiated to distribute shares in CDON to Qliro Group's shareholders and admit the company's shares for trading on the First North exchange. Under this plan, Nelly would remain in the Group. It was also announced that Marcus Lindqvist, CEO of Qliro Group since 2016, has fulfilled his mandate due to the unbundling and will be leaving his position.

On February 4, new financial targets for Qliro AB were announced prior to the planned listing. Financial developments for all three subsidiaries in 2020 were also commented on.

Qliro Group held an Extraordinary General Meeting on March 6. It resolved that the Group would change its name from Qliro Group to Nelly Group and that a share warrant program will be introduced in the subsidiary Qliro AB. The decisions are implemented if Qliro AB is being listed in the first half of 2020.

On March 20, the Qliro Group commented on the effect of the Corona virus and announced that the Group is holding off on the separate listing of its subsidiary Qliro AB. Up until that date, Qliro Group's total sales had not been negatively affected by the outbreak of Covid-19. The Board's ambition to unbundle the Group remained.

GROUP QUARTERLY INFORMATION

Consolidated figures and tables include the effects of IFRS 16. To better reflect the business, certain revenues previously reported as interest income have been reclassified to commission income in Qliro AB. In connection with this, commission income in the consolidated financial statements has been reclassified from other operating income to net sales. The comparative figures have been adjusted by SEK 13.1 million for the quarter.

Net sales decreased by SEK 9.4 percent to SEK 591.5 (652.9) million in the quarter, of which SEK 342.5 (360.6) million in Sweden, SEK 229.7 (258.9) million in the rest of the Nordic region and SEK 19.3 (33.5) million in the rest of the world. Exchange rate fluctuations had a negative effect of 0.4 percent. The gross margin was 25.6 (26.7) percent. The gross margin increased for CDON and decreased for Nelly.

Operating income before depreciation, amortization, and impairment was SEK -33.0(-6.2) million. Operating profit totaled SEK -76.4(-33.5) million. Net financial items totaled SEK 0.0 (-10.9) million. Profit before tax amounted to SEK -76.4(-44.4) million. Recognized tax expense totaled SEK 3.8 (0.1) million. Profit after tax amounted to SEK -76.6(-44.3) million. Basic and diluted earnings per share amounted to SEK -0.51(-0.30).

Cash flow and financial position

Cash flow from operating activities before changes in working capital was SEK -33.0(-6.2) million. CDON reduced its inventory during the quarter. Consolidated cash flow from operations after changes in working capital amounted to SEK -447.4(-165.0) million. Investments in non-current assets totaled SEK -29.1(-33.9) million. The investments were made mainly in technology platforms for Qliro AB and CDON. Cash flow from divestment of operations amounted to SEK 0.0 (0.0) million. Cash flow from financing activities totaled SEK 94.2 (-262.7) million. During the first quarter, loans of SEK 101 million were raised in the e-commerce business. In the first quarter of 2019, Qliro Group repaid a bond loan of SEK 250 million.

Consolidated cash and cash equivalents amounted to SEK 170.9 (231.1) million at the end of the quarter. In e-commerce operations, cash and cash equivalents amounted to SEK 169.4 (204.5) million and net cash to SEK 68 million. Total assets amounted to SEK 3,650.9 (3,049.8) million at the end of the quarter. Equity amounted to SEK 813.1 (954.2) million.

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Interim report for the first quarter 2020

Parent company

The parent company, Qliro Group AB, reported sales of SEK 1.0 (2.8) million. Profit before tax amounted to SEK -13.0(-16.7) million. Cash and cash equivalents in the parent company amounted to SEK 75.6 (98.9) million at the end of the quarter.

As of March 31, Qliro Group had 154,994,779 shares issued, of which 149,774,779 were common shares and 5,220,000 were C shares. The C shares are held by Qliro Group and may not be represented at General Meetings.

Consolidated situation

Qliro Group and its subsidiary Qliro AB (credit market company under FI's supervision) have constituted a consolidated situation since the third quarter of 2018 as Qliro AB accounts for more than half of the Group's total assets. Certain rules for the credit market company therefore also apply to the parent company, such as the capital adequacy regulations.

Accounting policies and valuation principles

This interim report was prepared in accordance with IFRS using the same accounting policies and bases of calculation as the most recent annual report and with application of IAS 34 Interim Financial Reporting.

IFRS 16 Leases

IFRS 16 has been applied since January 1, 2019. For lessees, IFRS 16 means that all leases (as defined) are recognized as assets and liabilities in the balance sheet and that associated depreciation and interest expenses are recognized in the income statement, with some exceptions. The transition to IFRS 16 at the start of 2019 resulted in assets and liabilities increasing by SEK 101 million. The current year and historical comparative figures are presented with IFRS 16 included.

Risks and uncertainties

Several factors affect, or may come to affect, directly or indirectly, the operations of the Qliro Group. These factors can be divided into industry and market risks, operational risks, financial risks, and legal risks. In addition to these risks, there are specific risks for Qliro AB. Industry and market risks include market developments in e-commerce, seasonal variations, risks related to fashion trends, the economic situation and consumer purchasing power. Operational risks include interruptions or deficiencies in IT and control systems, supplier relationships, inventories, and distribution. Financial risks include currency risk, credit risk, interest rate risk and liquidity risk. Legal risks include legislation, regulation and compliance, disputes, and intellectual property rights. The most prominent risks for Qliro AB include financial risks (see above), business risk/strategic risk and operational risks.

The 2019 annual report contains a more comprehensive description of the risks and uncertainty factors affecting the Group in the Management Report and under Note 21. The long-term effects of Covid-19 are difficult to predict, which has increased the uncertainty of future outlooks.

CDON Alandia

Like other companies in the sector, CDON previously distributed orders to customers in Finland from Åland. As communicated previously, the Finnish authorities have been investigating CDON Alandia for suspected tax fraud for several years. Proceedings had earlier been initiated at Åland district court in Finland against three persons who were members of CDON Alandia Ab's board in 2008-2013 and against two former employees of the Group. The Åland District Court rejected all charges and handed down an acquittal on February 25, 2020. However, Finnish prosecutors reported dissatisfaction with the verdict and were granted an extension of the appeal deadline until the end of April 2020. If those prosecuted are convicted in a court of appeal trial, they may be liable to pay damages to the Finnish authorities. If those prosecuted are ordered to pay damages, under certain circumstances they may make a claim to Qliro Group, CDON or CDON Alandia for compensation for any damages. No such claim has been made, and Qliro Group has not made any provisions for such claims.

Transactions with related parties

Transactions with related parties are presently of the same character as described in the 2019 annual report.

Interim report for the second quarter

Qliro Group's interim report for the second quarter will be presented on July 15.

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Interim report for the first quarter 2020

Nomination Committee

The Nomination Committee consists of Samuel Sjöström, appointed by Kinnevik, Christoffer Häggblom appointed by Rite Ventures and Thomas Krishan, who represents his own holdings. The Nomination Committee has appointed Samuel Sjöström as chairman.

On April 7, the Nomination Committee's proposal was published for the AGM on May 12. The Nomination Committee proposes re-election of Board members Christoffer Häggblom, Daniel Mytnik, Jessica Pedroni Thorell, Lennart Jacobsen, and Andreas Bernström. The Nomination Committee also proposes re-election of Christoffer Häggblom as Chairman of the Board. Erika Söderberg Johnson has declined re-election.

Dividend

The Board of Directors proposes that no dividend be paid to shareholders for the 2019 financial year and that the company's retained earnings be carried forward into the 2020 accounts.

2020 Annual General Meeting

The AGM for 2020 will be held on May 12, 2020, in Stockholm, Sweden. The meeting notice and 2019 Annual Report are available at www.qlirogroup.com and at the head office at Sveavägen 151 in Stockholm.

This report was not subject to review by the Group's auditor.

Stockholm, April 21, 2020

Marcus Lindqvist

CEO

Qliro Group AB (publ.)

Registered office: Stockholm

Corporate ID number: 556035-6940

Postal address: Box 195 25, 104 32 Stockholm, Sweden

Visiting address: Sveavägen 151, SE-113 46 Stockholm

Conference call

Analysts, investors, and the media are invited to a conference call today at 10 a.m. To participate in the conference call, please dial:

Sweden: 08 5033 6573

UK: [phone]

US: [phone]

The pin code to access this call is 330228.

The presentation material and webcast will be published at www.qlirogroup.com.

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

Niclas Lilja, Head of Investor Relations

Telephone: [phone] [e-mail]

About Qliro Group

Qliro Group is a Nordic e-commerce group that operates CDON.COM, the leading Nordic online marketplace, the fashion brand Nelly and fintech company Qliro AB, offering financial services to merchants and consumers. In 2019 the Group had sales of SEK 2.9 billion. Qliro Group's shares are listed on the Nasdaq Stockholm Mid Cap segment under the ticker symbol QLRO.

This information is information that Qliro Group AB is required to disclose under the EU Market Abuse Regulation. The information was released for publication through the agency of the above-mentioned contacts at 8:00 a.m. CET on April 21, 2020.

Qliro Group AB	11

Interim report for the first quarter 2020

Consolidated income statement		2020	2019	2019
SEK million		Jan-Mar	Jan-Mar	Jan-Dec
Net sales		591.5	652.9	2,938.6
Cost of goods and services		-439.9	-478.3	-2,135.2
Gross profit		151.6	174.6	803.4
Sales and administration expenses		-221.6	-205.6	-872.7
Other operating income and expenses, net		-6.4	-2.5	-23.4
Operating profit or loss		-76.4	-33.5	-92.7
Net interest & other financial items		0.0	-10.9	-12.9
Net profit or loss before tax		-76.4	-44.4	-105.5
Tax		-0.2	0.1	-4.7
Net profit or loss		-76.6	-44.3	-110.2
Attributable to:
Equity holders of the parent		-76.6	-44.3	-110.2
Non-controlling interests		-	-	-
Net income for the period		-76.6	-44.3	-110.2
Basic earnings per share (excluding discontinued operations) before and after dilution, SEK	1	-0.51	-0.30	-0.74
Basic earnings per share (including discontinued operations) before and after dilution, SEK		-0.51	-0.30	-0.74
1	Diluted earnings per share are adjusted and shows basic earnings per share
Consolidated statement of comprehensive income		2020	2019	2019
SEK million		Jan-Mar	Jan-Mar	Jan-Dec
Items that may be reclassified subsequently to profit or loss:
Translation difference for the period		-0.9	2.4	1.5
Total comprehensive income for period		-77.5	-41.9	-108.7
Total comprehensive income attributable to:
Parent company shareholders		-77.5	-41.9	-108.7
Non-controlling interests		-	-	-
Total comprehensive income for the period		-77.5	-41.9	-108.7
Shares outstanding at period's end, million		149.8	149.7	149.8
Shares outstanding at period's end, diluted, million		149.8	150.5	149.8
Average number of shares, basic, million		149.8	149.7	149.8
Average number of shares, diluted, million		149.8	150.5	149.8

Qliro Group AB	12

Interim report for the first quarter 2020

Consolidated Statement of financial position	2020	2019	2019
SEK million	31 mar	31 mar	31 dec
Non-current assets
Goodwill	65.9	64.3	64.4
Other intangible assets	265.4	246.7	269.6
Total intangible assets	331.3	311.1	333.9
Tangible assets	24.6	24.6	28.1
Financial assets	-	25.1	-
Leased assets	76.0	100.8	81.4
Deferred tax asset	111.0	113.1	111.0
Total non-current assets	542.8	574.8	554.5
Current assets
Inventories	345.1	418.9	349.6
Loans to the public	2,044.1	1,478.0	2,070.4
Current interest-bearing investments	369.9	167.8	255.0
Current non-interest bearing receivables	178.0	179.3	226.8
Cash and cash equivalents	170.9	231.1	553.9
Total current assets	3,108.1	2,475.1	3,455.6
Total assets	3,650.9	3,049.8	4,010.0
Equity
Equity attributable to owners of the parent	813.1	954.2	888.5
Total equity	813.1	954.2	888.5
Non-current liabilities
Non interest bearing
Other provisions	0.6	2.0	0.7
Interest bearing
Loan Facility	347.0	421.9	292.4
Bond	100.0	-	100.0
Financial leasing liabilities	-	0.4	-
Leased liabilities	43.6	72.6	53.6
Total non-current liabilities	491.2	497.0	446.6
Current liabilities
Interest bearing
Credit Facility	101.1	-	-
Deposits from the public	1,637.7	959.2	1,819.1
Leased liabilities	33.3	30.1	29.1
Non interest bearing
Current non-interest bearing liabilities	574.4	609.3	826.7
Total current liabilities	2,346.5	1,598.6	2,674.9
Total equity and liabilities	3,650.9	3,049.8	4,010.0
		3,244.6	2,985.6	2,985.6
The carrying amounts are considered to be reasonable approximations of fair value for all financial assets and
1	Including group adjustments and adjustments related to IFRS 16 Leasing
Statement of changes in equity	2020	2019	2019
SEK million	Jan-Mar	Jan-Mar	Jan-Dec
Opening balance	888.5	994.5	994.5
Comprehensive income for the period	-77.5	-41.9	-108.7
Effects of long term incentive program	2.1	1.5	2.7
Closing balance	813.1	954.2	888.5

Qliro Group AB	13

Interim report for the first quarter 2020

Consolidated statement of cash flow							2020		2019
SEK million							Jan-Mar		Jan-Mar
Cash flow from operating activities before changes in working capital					-33.0		-6.2
Changes in working capital	1						-414.3		-158.9
Cash flow from operations							-447.4		-165.0
Investments in non-current assets							-29.1		-33.9
Cash flow to/from investing activities							-29.1		-33.9
Redeemption of / Issued unsecured bond	2					-		-256.0
Amortization of leasing debt							-6.9		-6.7
Utilised credit facilities							101.1		-
Cash flow to/from financing activities							94.2		-262.7
Change in cash and cash equivalents for the period				-382.2		-461.6
Cash and cash equivalents at period's start					553.9		691.8
Translation difference, cash and cash equivalents					-0.7		0.9
Less cash from discontinued operations						-		-
Cash and cash equivalents at period's end					170.9		231.1
1	Utilised credit facilities within Qliro AB are reported as changes in working capital
Net Sales by segment				2020	2019	2019	2019		2019	2019
SEK million				Q1	Q4	Q3	Q2		Q1	Full year
CDON				184.2	421.6	211.9	217.7		260.6	1,111.7
Nelly				305.3	399.4	329.9	424.3		302.4	1,456.0
Qliro				104.7	97.4	93.0	92.1		92.2	374.7
Group central operations and adjustment	1		-2.7	0.8	-1.0	-1.3		-2.3	-3.7
Qliro Group Consolidated Total				591.5	919.2	633.8	732.8		652.9	2,938.6
					591.5	919.2	633.8	732.8		652.9	2,938.6
Operating profit by segment				2020	2019	2019	2019		2019	2019
SEK million				Q1	Q4	Q3	Q2		Q1	Full year
CDON				-15.2	17.2	-0.7	-7.4		-10.3	-1.3
Nelly				-27.1	-16.6	0.7	23.0		-12.2	-5.2
Qliro				-18.6	-34.0	1.6	0.3		2.5	-29.6
Group central operations and adjustment	1		-15.4	-14.4	-13.9	-14.8		-13.5	-56.6
Qliro Group Consolidated Total				-76.4	-47.8	-12.4	1.0		-33.5	-92.7
					-76.4	-47.8	-12.4	1.0		-33.5	-92.7
Inventories by segment				2020	2019	2019	2019		2019
SEK million				31-Mar	31-Dec	30-Sep	30-Jun	31-Mar
CDON				61.6	103.7	86.5	107.3		131.8
Nelly				283.4	245.9	308.1	254.0		287.1
Total e-commerce				345.1	349.6	394.7	361.3		418.9
					345.1	349.6				418.9
1	Group adjustments between Qliro and internal clients, related to differences in phasing of costs/revenues.

Qliro Group AB	14

Interim report for the first quarter 2020

Parent company income statement	2020	2019	2019
SEK million	Jan-Mar	Jan-Mar	Jan-Dec
Net sales	1.0	2.8	7.4
Gross profit	1.0	2.8	7.4
Administration expenses	-13.2	-12.0	-56.4
Operating profit or loss	-12.2	-9.1	-49.0
Profit or loss from shares in subsidiaries	-	-	-
Net interest & other financial items	-0.8	-7.6	-7.7
Profit or loss after financial items	-13.0	-16.7	-56.7
Group contribution received	-	-	0.0
Group contribution paid	-	-	-10.0
Profit or loss before tax	-13.0	-16.7	-66.6
Tax	-	3.7	-15.0
Net income or net loss for the period	-13.0	-13.1	-81.6
Parent company statement of comprehensive income
SEK million
Profit or loss for period	-13.0	-13.1	-81.6
Other comprehensive income	-	-	-
Total comprehensive income for period	-13.0	-13.1	-81.6

Qliro Group AB	15

Interim report for the first quarter 2020

Parent company statement of financial position	2020	2019	2019
SEK million	31 mar	31 mar	31 dec
Non-current assets
Equipment	0.3	0.6	0.4
Shares and participating interests in group companies	1,068.9	964.9	1,068.9
Deferred tax asset	94.7	109.6	94.7
Total non-current assets	1,163.8	1,075.1	1,163.9
Current assets
Current non-interest-bearing receivables	1.7	4.9	3.6
Receivables from group companies	22.2	1.5	5.8
Total current receivables	23.9	6.4	9.4
Cash and bank	75.6	98.9	8.3
Total cash and cash equivalents	75.6	98.9	8.3
Total current assets	99.5	105.3	17.7
Total assets	1,263.3	1,180.4	1,181.5
Equity
Restricted equity	155.8	310.8	155.8
Unrestricted equity	942.3	865.5	953.2
Total equity	1,098.1	1,176.3	1,109.0
Provisions
Other provisions	0.6	2.0	0.7
Total provisions	0.6	2.0	0.7
Current liabilities
Short term interest bearing loans	75.0	-	-
Short-term interest bearing loans to group companies	70.9	-	50.2
Liabilities to group companies	10.7	-	10.9
Non-interest-bearing liabilities	8.0	2.1	10.7
Total current liabilities	164.6	2.1	71.9
Total liabilities	165.2	4.1	72.5
Total equity and liabilities	1,263.3	1,180.4	1,181.5

Qliro Group AB	16

Interim report for the first quarter 2020

Key ratios				2020	2019	2019	2019	2019	2019
					Q1	Q4	Q3	Q2	Q1	Full year
CDON
No. of active customers, thousand		1,827	1,771	1,747	1,744	1,761	1,771
No. of visits, thousand			23,346	33,381	20,071	20,167	22,574	96,194
No. of orders, thousand			711	1,127	638	620	687	3,072
Average shopping basket, SEK			635	671	612	632	566	627
Nelly
No. of active customers, thousand		1,278	1,298	1,317	1,327	1,351	1,298
No. of visits, thousand			27,442	32,137	25,284	32,686	28,307	118,414
No. of orders, thousand			607	810	624	865	647	2,946
Average shopping basket, SEK	1		714	712	772	752	711	736
Qliro
Net debt, SEK million				1,713.2	1,716.8	1,452.9	1,341.4	1,163.8	1,716.8
Group
Net debt, SEK million				1,644.9	1,403.2	1,333.5	1,129.7	959.2	1,403.2
Basic earnings per share before and after dilution, SEK	2	-0.51	-0.36	-0.09	0.00	-0.30	-0.74
Equity per share, SEK	3			5.43	5.93	6.30	6.38	6.37	5.93
Key ratios have been adjusted to enable historical comparisons for continued operations
1	Calculation method based on order value
2	Basic Earnings per share before and after dilution for the period Jan-Mar 2020 have been calculated on the average number of outstanding shares for the
periods. The weighted average number of shares before and after dilution for the period Jan-Mar is 149,774,779.
3	Calculated on present number of common shares, which per Jan 2020 amounts to 149,774,779

DEFINITIONS

Net debt (+)/Net cash (-)	Interest-bearing liabilities, less interest-bearing current and non-current assets and cash and cash
	equivalents
Earnings per share	Earnings for the year attributable to parent company shareholders for the period divided by the
	average number of shares for the period
Equity per share	Equity attributable to parent company shareholders divided by the number of shares at the end of the
	period.
Number of active customers	The number of customers who have made a purchase at least once in the past 12 months
Number of visits	Gross number of visits to the Group's online stores.
Average shopping basket	(Online sales + shipping revenue)/number of orders placed.
Capital base	Total of Tier 1 capital and Tier 2 capital for capital adequacy purposes
Risk exposure amount (REA)	The total risk-weighted exposure amount is the total of credit risks, currency risks and operational risks
Minimum capital requirement	Institutions must meet the following own funds requirements:
	i)	Common Equity Tier 1 capital ratio of 4.5%
	ii)	Tier 1 capital ratio of 6%
	iii)	Total capital ratio of 8% under Article 92 of the Capital Requirements Regulation
Combined buffer requirement	Common Equity Tier 1 capital to meet the requirement for the capital conservation and countercyclical
	capital buffer and the buffer for systemically important institutions under Article 128 of the Capital
	Requirements Directive
Capital ratio	The own funds expressed as a percentage of the total risk-weighted exposure amount under Article 92
	of the Capital Requirements Regulation

Qliro Group AB	17

Interim report for the first quarter 2020

ALTERNATIVE PERFORMANCE MEASURES

Certain key ratios stated in this report are not defined according to generally accepted accounting principles (GAAP), for example IFRS. These alternative performance measures are considered useful to investors because they form the basis for assessing operational performance, along with the comparable GAAP ratios. Alternative performance measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Alternative performance measures may not be comparable to similar measures reported by other companies.

Earnings before interest, taxes, depreciation, amortization and impairment of intangible and tangible assets.
Q1 2020				Group
					central
SEK million	CDON	Nelly	Qliro	1	Group
operations
Earnings before interest and taxes	-15.2	-27.1	-18.6	-15.4	-76.4
Depreciation, amortization and impairment	-14.7	-6.9	-22.2	-0.1	-43.8
Earnings before interest, taxes, depreciation, amortization and impairment	-0.6	-20.2	3.5	-15.4	-32.6
Q1 2019				Group
					central
SEK million	CDON	Nelly	Qliro	operations1	Group
Earnings before interest and taxes	-10.3	-12.2	2.5	-13.5	-33.5
Depreciation, amortization and impairment	-4.6	-9.0	-11.8	-1.9	-27.3
Earnings before interest, taxes, depreciation, amortization and impairment	-5.7	-3.2	14.3	-11.6	-6.2
1	Includes group adjustments

Note 1

Disclosures in accordance with IAS 34.16A are on page 10.

Qliro Group AB	18

Interim report for the first quarter 2020

Note 2

The Group is divided into three segments. CDON is the leading Nordic online marketplace. Nelly offers online fashion shopping. Qliro AB offers financial services to merchants and consumers.

The Group's segments operate mainly in the Nordics. Net sales are recognized below by geographical area as the countries have different business conditions. The geographical breakdown into Sweden, rest of the Nordics and rest of the world reflects where income is generated in the Group.

Net sales in CDON and Nelly are mainly online sales. Qliro AB's net sales comprise interest income (gross). Sales are recognized by country of sale, that is, the country in which the recipient is located.

Sales by geographic area
Q1 2020					Group	Group
			CDON	Nelly	Qliro	central	consolidated
SEK million					1	total
				operations
Sweden		110.0	150.1	85.0	-2.7	342.5
Other nordics		74.2	135.9	19.6	-	229.7
Nordics		184.2	286.0	104.7	-2.7	572.2
Rest of the world		-	19.3	-	-	19.3
Total		184.2	305.3	104.7	-2.7	591.5
Q1 2019					Group	Group
			CDON	Nelly	Qliro	central	consolidated
SEK million					2	total
				operations
Sweden		152.1	140.9	69.8	-2.3	360.6
Other nordics		108.4	128.0	22.4	-	258.9
Nordics		260.6	268.9	92.2	-2.3	619.4
Rest of the world	1	-	33.5	-	-	33.5
Total		260.6	302.4	92.2	-2.3	652.9
1	Includes group adjustments

Qliro Group AB	19

Interim report for the first quarter 2020

Qliro AB's publication of information regarding capital adequacy and liquidity management

Qliro AB (556962-2441) is a credit market institution and wholly owned subsidiary of Qliro Group AB (556035- 6940). Qliro AB and Qliro Group AB are included in a consolidated situation. All information is presented as of March 31, 2020 in accordance with Regulation (EU) 575/2013 and the Swedish Financial Supervisory Authority's (FI) regulations and general guidelines (FFFS 2014:12). All amounts are stated in 20millions of Swedish kronor.

Own funds	Qliro AB		Consolidated situation
Common Equity Tier 1 capital	310.2		465.1
Additional Tier 1 capital	-		-
Tier 2 capital	49.6		49.6
Total capital	359.8		514.7
Risk exposure amount	Qliro AB		Consolidated situation
Credit risk according to standardized approach, of which	1,646.9		1,905.3
exposure to households	1,463.1		1,463.1
exposure to corporates	43.1		65.7
exposures in default	123.2		123.2
exposure to institutions	0.3		15.4
exposure covered bonds	-		-
exposure equity	0.1		220.4
other exposures	17.1		17.4
Market risk	-		-
Operational risk according to basic indicator approach	547.7		568.0
Total risk exposure amount	2,194.6		2,473.3
Capital requirement	Qliro AB		Consolidated situation
Pillar 1 requirement (Total minimum capital requirement)	175.6		197.9
Pillar 2 requirement, incl. capital planning buffer	49.6		72.0
Combined buffer requirement	56.0		63.0
Total capital requirements, excl. combined buffer requirement	225.1		269.9
Total capital requirements, incl. combined buffer requirement	281.2		332.9
Total capital requirement ratio, incl. combined buffer requirement	12.8%		13.5%
Capital adequacy analysis	Qliro AB		Consolidated situation
Common Equity Tier 1 capital ratio	14.1%		18.8%
Tier 1 capital ratio	14.1%		18.8%
Total capital ratio	16.4%		20.8%
Leverage ratio	12.4%		16.5%
Combined buffer requirement	2.6%		2.5%
of which: capital conservation buffer requirement	2.5%		2.5%
of which: countercyclical buffer requirement	0.1%		0.0%
Capital planning buffer	0.9%		1.3%

Qliro Group AB	20

Interim report for the first quarter 2020

Funding

Qliro AB's net lending to the public amounted to SEK 2,044 (1,478) million at the end of the quarter. The lending was financed by the amount of SEK 347 (422) million via a secured contracted credit facility and SEK 1,638 (962) million through deposits from the public (savings accounts) in Sweden and Germany, of which 99.5 percent are protected by the deposit insurance scheme in Sweden. Deposits from the public were divided into 69 percent on demand with variable rate and 31 percent fixed interest rate with a duration of 207 days as of March 31, 2020 (initially 6-month fixed rate and 1-year fixed rate). 23 percent of the deposit from the public is invested in liquid financial assets and placed in Nordic banks.

Liquidity

Qliro AB's total liquidity as of March 31, 2020 amounted to SEK 371 million, consisting of:

• Capital market investments*: SEK 370 million
• Bank balances in Nordic banks: SEK 1.5 million

The consolidated situation had additional SEK 76 million placed in Nordic banks as of March 31, 2020.

In addition to the financial investments, Qliro AB had as of March 31, 2020 SEK 453 million in back up liquidity via undrawn funding in a secured committed credit facility.

As of March 31, 2020, the liquidity coverage ratio amounted to 286 percent for Qliro AB and 272 percent for the consolidated situation, to be compared with the regulatory requirement of 100 percent. The liquidity coverage ratio measures a liquidity buffer of SEK 150 million for both Qliro AB and the consolidated situation, related to net outflows of SEK 52.5 million for Qliro AB and SEK 55.2 million for the consolidated situation over a thirty-day period under stressed market conditions.

*Capital market investments consist of Swedish municipal bonds and commercial papers. Average rating of the capital market investments was AA+ with an average maturity of 46 days.

Qliro Group AB	21

Interim report for the first quarter 2020

Disclosure of information regarding capital in accordance with Regulation (EU) 1423/2013 Annex IV.

	Common Equity Tier 1 (CET1) capital			Qliro AB		Consolidated
				situation
Instruments and reserves	50.1		155.0
1	Capital Instruments and the related shared premium accounts	462.1		871.6
2	Retained earnings	0.0		0.0
3	Accumulated other comprehensive income (and other reserves)	0.0		0.0
5a	Independently reviewed interim profits net of any foreseeable charge or dividend	512.2		1,026.6
6	Common Equity Tier 1 (CET1) capital before regulatory adjustment	512.2		1,026.6
Regulatory adjustments
7	Additional value adjustments	-0.4		-0.4
8	Intangible assets (net of related tax liability)	-183.0		-183.0
	Deferred tax assets that rely on future profitability excluding those arising from
10	temporary differences	-18.7		-113.3
	Exposure amount of the following items which qualify for a RW of 1250 %, where the
20a	institution opts for the deduction alternative	0.0		-264.9
20b	of which: qualifying holdings outside the financial sector	0.0		-264.9
20c	of which: securitisation positions (negative amount)	0.0		0.0
20d	of which: free deliveries (negative amount)	0.0		0.0
21	Deferred tax assets arising from temporary differences	0.0		0.0
28	Total regulatory adjustments to Common Equity Tier 1 (CET1)	-202.0		-561.5
29	Common Equity Tier 1 (CET1) capital	310.2		465.1
45	Tier 1 capital (T1 = CET1 + AT1)	310.2		465.1
	Tier 2 (T2) capital
Instruments and provisions
46	Capital instruments and the related share premium accounts	49.6		0.0
	Qualifying own funds instruments included in consolidated T2 capital issued by
48	subsidiaries and held by third party	0.0		49.6
51	Tier 2 (T2) capital before regulatory adjustments	49.6		49.6
Regulatory adjustments
57	Total regulatory adjustments to Tier 2 (T2) capital	0.0		0.0
58	Tier 2 (T2) capital	49.6		49.6
59	Total capital (TC= T1 + T2)	359.8		514.7
60	Total risk weighted assets	2,194.6		2,473.3
	Capital ratios and buffers
61	Common Equity Tier 1 (as a percentage of total risk exposure amount)	14.1%		18.8%
62	Tier 1 (as a percentage of total risk exposure amount)	14.1%		18.8%
63	Total capital (as a percentage of total risk exposure amount)	16.4%		20.8%
	Institution specific buffer requirement (CET1 requirement in accordance with article
64	92(1)(a) plus capital conservation and countercyclical buffer requirements)	7.1%		7.0%
65	of which: capital conservation buffer requirement	2.5%		2.5%
66	of which: countercyclical buffer requirement	0.1%		0.0%
68	Common Equity Tier 1 available to meet buffers (as a percentage of REA)	7.1%		11.8%

Qliro Group AB	22