Komplett ASA

Investor Presentation • Feb 8, 2024

Fourth quarter 2023

Jaan Ivar Semlitsch, CEO Thomas Røkke, CFO

8 February 2024

Disclaimer

This presentation has been prepared by Komplett ASA (the "Company") solely for information does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

This presentation includes forward-looking statements which are based on our current expections about future events. All statements other than statements of historical facts including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "may," "assume" "plan," "will," "should," estimate," "risk" and similar expressions of these expressions are intended to identify forwardlooking statements. By their nature, forward-looking statements involve known risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not quarantees of future performance. You should not place forward-looking statements. In addition, any forward-looking statements are made only as of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this notice.

2023 Highlights Culture, people and performance at the core in a challenging market

4

Komplett Group has built scale and strengthened its market position while maintaining its industry-leading cost position

New management teams established, and key recruitments made in Komplett Group and in NetOnNet, Komplett, Webhallen and Ironstone brands

3

In recent quarters, the group has made good progress across key financial metrics and shown a controlled financial position

The long-term growth trajectory for online retail continues, and Komplett Group has taken action to scale up its competitive advantages and remains well positioned for a market recovery

Deliver peak	Deliver operational excellence and profitability	Expand NetOnNet in Norway	Further organisational changes to improve performance and reduce costs	Refine strategic direction
Strong peak season, weaker second half of December Good development for private label	Continued year- over-year progress across key financial metrics	Good start for store opening at Alnabru	Central commercial team in place	Prioritised growth areas in progress driven by our central commercial team in
Market shares maintained or increased Healthy inventory position & good service levels	NetOnNet won in "home electronics" by ServiceScore® Komplett awarded "Store of the year" by Prisjakt	Getting ready for Stavanger in 01-24	New MDs recruited for NetOnNet and Webhallen	cooperation with brand sales teams Further details on Capital Markets Day 29 February

04-23 Highlights lmproved profitability despite continued market headwind

KOMPLETT®GROUP

• ه 30 per cent increase in operating results (EBIT adj.) driven by sustained gross margin progress (+1.2 pp), stable sales and good cost control
• ه Financial position stable with leverage ratio (NIBD/LTM EBITDA) of 2.4x on lower debt and strong liquidity
• 。 Good progress on operational initiatives, including securing the strategic potential and scale efficiencies from the NetOnNet acquisition
• Non-cash impairment of goodwill attributed to the NetOnNet acquisition and de-risking of balance sheet according to IFRS:
  • ه but no changes to strategic potential

Note: All figures are presented as reported and in NOK million unless otherwise stated.

Financial performance Thomas Røkke, CFO 第十届第

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Key financials

30 per cent EBIT adj. uplift in challenging market environment

Modest revenue growth of 1.7 per cent in a difficult market O

• Some impact from currency translation effects (-2.3 per cent LFL) O
• Good black week delivery, especially for B2C, but weaker sales second O half of December
• Swedish market remained challenging during latter part of quarter O
• Slightly better but still challenging market conditions in Norway O

o Gross profit uplift of 11.4 per cent supported by active measures

• o improved pricing strategies and initiatives
• o
• Sourcing program progressing largely as planned despite headwinds O

Cost base managed to maintain industry-leading position

O

• o strategic marketing investments
• Cost reduction measures being implemented, and further cost saving initiatives in progress
• YoY), while B2B and Distribution had weaker performance in the quarter

B2C Solid EBIT improvement driven by gross margin proqress despite challenging markets

KOMPLETT®GROUP

Revenues up 3.0 per cent YoY (-2.2 per cent LFL) O

• Norway +4.1 per cent, Sweden -5.1 per cent and Denmark O +15.4 per cent (LFL, YoY)
• Solid black-week performance in all markets O
• Weak December sales, especially in Sweden O

Continued gross margin uplift of 1.8 pp driven by: O

• Healthier inventory reducing price pressure O
• Sourcing initiatives and pricing strategies O
• Sound inventory and good supplier partnerships 0

o

• o Cost base impacted by significant currency translation effects, as well as increased personal expenses and marketing investments in NetOnNet
• o Cost initiatives implemented to offset general cost inflation

B2B

Softer demand from SME customers, more competition and neqative mix effects

்

• Norway -5.4 per cent and Sweden -4.0 per cent LFL O
• o Improved service levels compared with last year
• o Weak macroeconomic environment impacting demand from smaller SME customers

Gross margin impacted by: O

• lmproved pricing conditions and healthy inventory O position
• o Progress offset by increased competition and campaign activity across the industry as well as product mix

EBIT decline of NOK 11 million, due to: o

KOMPLETT®

• Weaker gross margin in combination with increased O marketing investments and general cost inflation
• o on projects in Ironstone

Distribution

KOMPLETT®GROUP

Steady performance in slow market

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• Stable revenue level in Norway, decline in Sweden, with o both being affected by release of volumes during 04 2022
• Better product availability offset by phasing of sales and an overall weaker consumer sentiment
• temporary impact on operations

o Slight gross margin reduction reflecting:

• o offset by adverse product and customer mix effects
• o EBIT down NOK 5 million due to slightly higher opex share, driven by:
  • o Revenue decline combined with general inflation

Profit and loss

KOMPLETT®GROUP

Underlying progress from core business

	04-23	04-22	FY-25	FY-22
Operating revenue	4 734	4 657	15 861	14 618
Depreciation and amortisation	-86	-76	-335	-256
EBIT (adj.)	91	70	139	87
One-off costs	-12	-20	-41	-80
Impairments	-983		-983
EBIT	-904	50	-885	6
Net financials	-39	-41	-164	-104
Profit before tax	-943	8	-1 050	-98
lax expense	-4	47	11	56
Profit from continuing operations	-947	55	-1 038	-42
Profit from discontinued operations	L	4		10
Profit for the period	-947	59	-1 038	-32

• Depreciation and amortisation totalled NOK 86 million, of which NOK 13 million linked to amortisation of acquired customer value. Yo Y increase mainly driven by higher depreciations on right-of-use assets (e.q., cost inflation)
• o were restructuring charges related to the closure of five Webhallen shops (additional NOK 8 million as write-down), in addition to organisational changes and restructuring in other business units
• o Significant non-cash impairment of goodwill and derisking of balance sheet in compliance with IFRS due to changed market conditions mainly affecting goodwill
• o Net financials of NOK 39 million. Interest on the group's debt facilities and factoring expenses were the main components of the financial expenses
• o Tax expenses of NOK 4 million, compared with a tax income of NOK 47 million in the same period last year when a tax deduction for losses of previous years was recognised
• o Loss for the period of NOK 947 million driven by non-cash impairment charges compared with a profit from continuing operations of NOK 55 million in Q4 2022

Note: Includes the CGUs Komplett B2C, Komplett B2B and Itegra

o

• o
• o
• o
• o

o

• o
• o
• o

o

• o
• o

Cash flow & working capital

Net working capital optimisation maintained

Cash flow	04-23	04-22	FY-23	FY-22
Net cash flow from operating activities	251	560	866	1 102
Net cash used in investing activities	-84	-77	-208	-1 701
Net cash (used in)/from financing activities	-105	-419	-578	706
Net change in cash and cash equivalents	62	64	81	108

Net working capital	04-23	04-22
Inventory	2 194	1928
Trade receivables - regular	245	309
Trade payables	-1 563	-1 412
Other assets and liabilities	-623	-181
Net working capital	253	644

• o Net cash flow used in investing activities during the period mainly related to property, plant and equipment, while still reflecting the significant upgrade of IT infrastructure in Komplett going live during 04
• o Net cash used in financing activities mainly resulting from rebalancing of liquidity facilities, principals on lease repayments as well as interest charges
• o Healthy inventory position, but still up NOK 266 million YoY due to weaker sales in second half of December yielding need to carefully adjust levels down while maintaining service levels
• o Net working capital significantly reduced year on year through increased payables, as well as the tax deferment scheme in Sweden

Financial position

KOMPLETT®GROUP

Continued progress across key metrics

• o Equity ratio of 37.4 per cent at year-end, compared with 46.4 per cent one year earlier on the back of executed noncash impairments
• NOK 1 434 million last year, through debt refinancing but also affected by the utilisation of the Swedish tax deferment scheme
• December 2023
  • The liquidity reserve positively affected by the utilisation of the Swedish tax deferment scheme and reduced by discontinuation of one redundant facility
  • o At year-end 2022, the reported liquidity reserve of NOK 1 333 million did not reflect the new financing structure.
• Leverage ratio stable at 2.4x in 04 2023, and the Group continues to operate in compliance with all undertakings of its financial facilities

14

Key takeaways

Dedicated to building strong teams and lifting profitability

• o Significant profit uplift in a challenging market environment
• o Good progress on initiatives to strengthen market position, utilise scale benefits and improve service levels while maintaining industry-leading cost position
• o Actions to improve operational and financial performance have been combined with new management teams and key recruitments
• Significant de-risking of balance sheet through non-cash impairments
• o Well positioned to handle a continued difficult market expected into 2024

Outlook

Committed to scaling up competitive advantages

• o No clear signs of a swift market recovery
• Komplett Group is entering 2024 with a controlled financial position as planned
• o Potential for additional margin upside in coming periods, supported by sourcing initiatives and the newly established commercial organisation
• o Reinforcing the efforts to counteract cost inflation
• o Brand positioning and market share expansion remains a core priority

Welcome to our Capital Markets Day

29 February 2024 09:00-12:00 CET

House of Oslo Conference Center, Ruseløkkveien 34

The event will be followed by a light lunch with management

Jaan Ivar Semlitsch Chief Executive Officer

Erlend Stefansson MD Komplett Services

Thomas Røkke Chief Financial Officer

Josefin Dalum MD NetOnNet

Andreas Westgaard Chief Commercial Officer

Trygve Hillesland MD Webhallen

Alternative Performance Measures (APMs)

The APMs used by Komplett Group are defined as set out below:

Gross profit: Total operating revenue less cost of goods sold. The group has presented this item because it considers it to be auseful measure to showthe management's view on the overall picture of profit generation before operating costs in the group's operations.

Gross margin: Gross profit as a percentage of total operating revenue. The group has presented this item because it considers it to be ause ful measure to show the management's view on the efficiency of gross profit generation of the group's operations as a percentage of total operating revenue.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
Total operating revenue	4734	4 657	15 861	14 618
- Cost of goods sold	(4 069)	(4 059)	(13650)	(12 824)
= Gross profit	665	597	2 211	1794
Gross margin	14.0 %	12.8 %	13.9 %	12.3 %

Total operating expenses (adjusted): Total operating expenses less cost of goods sold and oneoff cost. The group has presented this item because the management considers it to be auseful measure of the group's efficiency in operating activities.

Operating cost percentage (adj.): Total operating expenses less cost of goods sold and one-off cost as a percentage of total operating revenue. The group has presented this item because the management considers it to be a useful measure of the group's efficiency in operating activities.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
Total operating revenue	4734	4657	15 861	14 618
Total operating expenses - Cost of goods sold	5 638 (4 069)	4 607 (4 059)	16746 (13650)	14 612 (12 824)
- One-off cost - Impairment	(12) (983)	(20)	(41) (983)	(80)
= Total operating expenses (adj.)	574	528	2 073	1707
Operating cost percentage	12.1 %	11.3 %	13.1 %	11.7 %

EBITDA excl. impact of IFRS 16: Derived from financial statements as the sum of operating result (EBIT) plus the sum of depreciation and amortisation for the segments B2C, B2B, Distribution and Other. The group has presented this item because it considers it to be a use ful measure to show the management's view on the overall picture of operational profit and cash flow generation before depreciation and amortisation in the group's operations, excluding any impact of IFRS 16.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
FBIT	(904)	50	(885)	ട്
- EBIT impact of IFRS 16	(4)	(4)	(16)	(12)
+ Dep B2C, B2B, Dist. Other	1 012	33	1120	115
= EBITDA excl IFRS 16	103	79	218	109

EBIT adjusted: Derived from financial statements as operating result (EBIT) excluding one-off costs. The group has presented this item be cause it considers it to be auseful measure to show the management's view on the efficiency in the profit generation of the group's operations before one-off items.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
Total operating revenue	4734	4 657	15861	14 618
EBIT	-904	50	-885	წ
+ One-off cost	12	20	41	80
+ Impairment	983		983
= EBIT adjusted	91	70	139	87
EBIT margin adjusted	1.9 %	1.5 %	0.9 %	0.6 %

EBIT margin adjusted: EBIT adjusted as a percentage of total operating revenue. The group has presented this item because it considers it to be auseful measure to show the management 's view on the efficiency in the profit generation of the group's operations before one-off items as a per centage of total operating revenue.

EBIT margin: Operating result (EBIT) as a percentage of total operating revenue. The group has presented this item because it considers it to be a useful measure to show the management's view on the efficiency in the profit generation of the group's operations as a percentage of total operatingrevenue.

Reconciliation

Amounts in NOK million	04	04	FY	FY
	2023	2022	2023	2022
Total operating revenue	4734	4 657	15861	14 618
EBIT	(904)	50	(885)	ട്
EBIT margin	(19.1%)	1.1 %	(5.6%)	0.0 %

Net working capital: Working capital assets, comprising inventories, trade receivables, trade payables andt other current assets and liabilities. The deferred Swedish taxliability is classified as other current liability in accorance with local accounting principles. The management considers it to be auseful indicator of the group's capital efficiency in it s day-to-day operational activities.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
Inventory	2 194	1928	2194	1928
+ Trade receivables - regular	245	309	245	309
- Trade payables	(1 563)	(1412)	(1563)	(1 412)
+/- Other assets and liabilities	(623)	(181)	(623)	(181)
= Net working capital	253	644	253	644

Net interest-bearing debt: Interest-bearing liabilities less cash and cash equivalents. The group has presented this item because the management considers it to be auseful indicator of the group's indebtedness, financial flexibility and capital structure. As mentioned above interest-bearing debt does not include the deferred Swedish tax liability. The net interest-bearing debt incl. IFRS 16 is a useful measure as indebtedness, including the lease liabilities from IFRS 16, is relevant for the covenants of the group's credit facilities.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
Long-termloans	800	400	800	400
+ Short-term loans		625		625
- Cash/cashequivalents	(230)	(149)	(230)	(149)
= Net interest-bearing debt	570	876	570	876
+ IFRS 16 liabilities	608	558	608	558
= Net int . bear. debt incl. IFRS 16	1178	1434	1178	1434

Operating free cash flow: EBITDA excl. impact of IFRS 16 less investment in property, plant and equipment, less change in net working capital less change in trade receivable from deferred payment arrangements. The group has presented this item because the management considers it to be a useful measure of the group's operating activities' cash generation.

Reconciliation

Amounts in NOK million	04 2023	04 2022	FY 2023	EY 2022
FBIT DA excl IFRS 16	103	79	218	109
- Investments	(84)	(75)	(212)	(177)
+/- Change in net working capital	31	403	392	750
+/- Change in deferred payment	17	5	12	39
= Operating free cash flow	67	412	410	721

Komplett + NetOnNet pro forma key figures

Key figures FY 2023

	Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2023	YTD 2023	YTD 2023	YTD 2023
Operating revenue	15 861	9 900	5 961
Growth (%)	-1.4%	0.7%	-4.7%
Gross profit 1	2 211	1 251	960
Gross margin (%)1	13.9%	12.6%	16.1%
Operating expenses (ex. dep and one-off)(adj.)	-1 738	-1 035	-702
Depreciation and amortisation	-335	-147	-150	-38
Total operating expenses (adj.)	-2 073	-1 182	-853	-38
Operating cost percentage (adj.)1	-13.1%	-11.9%	-14.3%
EBIT (adj.)1	139	69	108	-38
EBIT margin (adj.) (%)1	0.9%	0.7%	1.8%
One-off cost	-41	-30	-12
Impairment	-983	-977	-6
FBIT	-885	-938	90	-38
Net financials	-164	-136	-28
Profit before tax	-1 050	-1 074	62	-38
Profit before tax (%)	-6.6%	-10.8%	1.0%

Key figures FY 2022

	Pro forma		NetOnNet
Amounts in NOK million	Group YTD 2022	Komplett YTD 2022	YTD 2022	Adjustment YTD 2022
	16 086	9 834	6 252
Operating revenue
Growth (%)	-13.1%	-10.9%	-16.4%
Gross profit 1	2 008	1 108	900
Gross margin (%)"	12.5%	11.3%	14.4%
Operating expenses (ex. dep and one-off) (adj.)	-1 630	-923	-707
Depreciation and amortisation	-299	-126	-127	-46
Total operating expenses (adj.)	-1929	-1 049	-834	-46
Operating cost percentage (adj.) 1	-12.0%	-10.7%	-13.3%
EBIT (adj.)1	79	59	66	-46
EBIT margin (adj.) (%)1	0.5%	0.6%	1.1%
One-off cost	-80	-61	-20
Impairment
FBIT	-1	-2	46	-46
Net financials	-19	-51	-15	-53
Profit before tax	-120	-52	31	-99
Profit before tax (%)	-0.7%	-0.5%	0.5%

	Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2023	YTD 2023	YTD 2023	YTD 2023
Total operating income	15 861	9 900	5 961
Cost of goods sold	-13 650	-8 649	-5 000
Employee benefit expenses	-1 014	-570	-445
Depreciation and amortisation expense	-335	-147	-150	-38
Impairment	-983	-977	-6
Other operating expenses	-765	-495	-169
Total operating expenses	-16 746	-10833	-5 870	-38
OPERATING RESULT	-385	-033	90	-33
Net finance income and expenses	-164	-136	-28
PROFIT BEFORE TAX	-1050	-1 074	62	-38
Tax expense	11	23	-19	7
PROFIT FROM CONTINUING OPERATIONS	-1033	-1 051	44	-31
Profit/loss on discontinued operations
PROFIT FOR THE PERIOD	-1 038	-1 051	44	-31

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2022	YTD 2022	YTD 2022	YTD 2022
Total operating income	16 086	9 834	6 252
Cost of goods sold	-14 078	-8 726	-5 352
Employee benefit expenses	-937	-488	-449
Depreciation and amortisation expense	-299	-126	-127	-46
Impairment
Uther operating expenses	-773	-496	-278
Total operating expenses	-16 087	-9 836	-6 205	-46
OPERATING RESULT	-1	-2	46	-46
Net finance income and expenses	-19	-51	-15	-53
PROFIT BEFORE TAX	-120	-52	31	-99
Tax expense	62	48	-7	21
PROFIT FROM CONTINUING OPERATIONS	-583	-4	24	-78
Profit/loss on discontinued operations	10	10
		5	24	-78

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