New long-term market share-related target that replaces the previous mid-term target

CDON currently holds a total market share[1] of approximately 1.0-1.5% in the Nordic e-commerce market. The company has today set a new ambitious long-term target. The new long-term target is to reach double digit market share in the Nordic e-commerce market. This new goal replaces CDON's previously disclosed[2] mid-term goal of achieving at least 2.5 % market share in the Nordic e-commerce market by the end of FY 2025.

For CDON to achieve long-term success like marketplaces in other regions, we will strive to:

1. Increase the amount of quality supply: provide more of the products that people want and utilize the low margin costs of bringing in more supply.
2. Improve customer happiness: Fyndiq has in recent years enjoyed a significantly higher Trustpilot score compared to CDON. We intend to continue improving the customer experience at both CDON's and Fyndiq's marketplaces and become places where customers are delighted to shop.
3. Create distinct customer experiences for both brands: Leverage two brands with different value propositions to serve different types of customer and needs.

CDON's earlier disclosed financial directives and the target of being at least EBITDA breakeven for FY 2023 remain intact and are re-iterated below.

Financial directives

• CDON's marketplace (3P) business shall continuously gain market share in the Nordic e-commerce market.

• CDON's 3P take rate[3] shall increase over time, through an improved product mix and an increased focus on additional services.
• CDON shall enjoy strong incremental margins as a result of its high gross margin 3P business and the relatively fixed nature of administrative and general costs.

Target for FY 2023

CDON's business shall be at least EBITDA breakeven in FY 2023 - unless:

• CDON finds growth investment opportunities where CDON believes the IRR (Internal Rate of Return) significantly exceeds CDON's cost of capital;
• the macro environment undergoes further material deterioration from the low levels expected in Q4 2022.

Expected synergies from the combination and integration of CDON and Fyndiq

As a result of the expected synergies from the combination and integration of CDON and Fyndiq, CDON should benefit from direct cost savings of approximately SEK 40 million. CDON expects the integration project to be complete with the full cost synergies realized by the end of 2024.

In addition to the estimated cost synergies mentioned above, there are several synergy areas with high potential to improve profits including:

• take-rate optimisation from best practice sharing and implementation of value-added services;
• lowered customer acquisition costs through aligned marketing efforts; and
• improved merchant acquisition efforts through one organisation, and one stronger offer.

[1] "Market share" is defined as CDON's total GMV as share of Serviceable Available Market, defined as total online spend in the Nordics, excluding hospitality, travel, building materials, groceries, clothing, shoes and pharmacy products. (Source for the Nordic e-commerce market data: E-commerce in Europe, Postnord 2021.)

[2] Please see CDON's press release "CDON announces financial directives and targets" from 19 October 2022: https://investors.cdon.com/en/investor-relations/press-releases/cdon-announces-financial-directives-and-targets-99173?page=2

[3] "Take rate" is defined as commission for CDON marketplace and additional revenue streams such as financial commission, advertising income and subscriptions fees divided by GMV (Gross Merchandise Value) for CDON marketplace.