Annual Report 2010 - CDON Group

CDON Group AB
Annual report 2010
CDON Group AB
Annual report 2010
All transactions between related parties are based on market-based conditions and negotiations have been completed on arms’-length
basis.
Transactions with related parties
The Group purchases marketing services from Kinnevik. In 2010, total purchases amounted to SEK 1.1 million (0).
Transactions with related parties to Kinnevik
The Group purchases credit management services from Transcom.
The Group purchases telecom and data communication services from Tele2 and operations and maintenance through its subsidiary
Datametrix.
The Group purchases advertising from Metro.
The Group purchases advertising and management services from MTG companies. The Group sells management services and goods to
MTG companies.
There have been no transactions with senior executives in addition to those reported in Note 23.
Parent company
The parent company has related party relationships with its subsidiaries (see Note 11).
Sale of Purchase of
Receivables Liabilities to
goods/service goods/services Other (e.g. from related related parties
s to related from related interest, parties at 31 at 31
Summary of transactions with related parties Year parties parties dividend) December December
Subsidiaries 2010 - - 110,385 165,766 241,311
Subsidiaries 2009 - - 130,655 130,660 60,505
Note 27 Convertible bonds
Following a resolution passed at an Extraordinary General Meeting of CDON Group shareholders in Stockholm on 25 November 2010, the
Group issued a five year SEK 250 million convertible bond on 2 December 2010. MTG subscribed for 100% of the bond, which bears an
annual coupon rate of 2.85%.
Group and parent company (SEK thousands) 2010 2009
Nominal value after convertible bond issue, 2 December 2010 250,000 -
Original amount classified as equity -31,960 -
Deferred tax liability attributable to convertible bond -11,405 -
Capitalised interest 569 -
Recognised liabilities, 31 December 2010 207,204 -
Net financial items
Capitalised interest -569 -
Coupon rate -554 -
Effect of the convertible bond on net financial items in the consolidated and parent
company income statements
-1,123 -
The conversion price for the Group’s SEK 250.0 million five-year convertible bond was set as of 19 January 2011 at SEK 38.00, which
corresponds to 125% of the volume-weighted share price for CDON Group shares during the first 20 days of trading, that is to say, the
period from 15 December 2010 to 14 January 2011. MTG may therefore convert the bond into a maximum of 6,578,947 CDON Group
shares between 15 June 2012 and the end of 1 December 2015, which would represent a 9.0% dilution effect based on the number of
shares outstanding as at 31 December 2010.
Note 28 Reclassification in income statements
Condensed consolidated income statement (SEK thousands)
Before reclassifications
Jan-dec 2009
Reclassifications After reclassifications
Revenue 1,746,162 1,746,162
Cost of goods sold -1,476,858 79,167 -1,397,691
Gross profit/loss 269,304 79,167 348,471
Sales & administrative expenses -144,971 -79,095 -224,066
Other operating income and expenses, net 806 -72 734
Operating profit/loss 125,139 - 125,139
Reclassifications have been made for marketing costs and some internal warehousing costs. As such, cost of goods sold includes costs for
products, distribution, warehousing, shipping, and payment transactions, as well as realised and anticipated bad debt losses. The changes
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