Komplett ASA

Earnings Release • Oct 25, 2022

Q3-22: Maintaining a robust position in a volatile market

Q3-22: Maintaining a robust position in a volatile market

Sandefjord, 25 October 2022: In the third quarter, the Group's financial

performance continued to be impacted by softer demand, especially in the

consumer market. In this challenging market, the Group has succeeded with its

actions to maintain its cost leadership position, ensure an attractive inventory

position and improve net working capital.

The Group's total revenue amounted to NOK 3 784 million in the third quarter of

2022, compared with NOK 2 715 million in the same period of 2021. NetOnNet's

contribution amounted to NOK 1 462 million. Despite the temporary market decline

in the recent quarters, Komplett has since 2019 reached 10 per cent organic

revenue CAGR.

Both the B2B and Distribution segments reported modest revenue growth. Volume

decline in the B2C segment, combined with lower gross margins in all segments

resulting from price pressure across the industry, resulted in a negative

adjusted EBIT result for the Group of NOK 10 million.

The Group is progressing with supplier negotiations to realise synergies

following the acquisition of NetOnNet. Cost synergies in the range of at least

NOK 200 million on an annual basis are expected to have a full effect within 24

months of the completion of the transaction, of which an annual run rate of NOK

100 million is expected from 2023.

Komplett is dedicated to maintaining its cost leadership position and continued

to demonstrate strong cost control in the quarter. This resulted in a six per

cent decline in operating expenses, adjusted for M&A effects, compared with the

third quarter of 2021.

In light of the volatile market conditions, the Group has implemented measures

to support a healthy balance sheet. In the quarter, the Group succeeded in

improving net working capital by NOK 200 million as a result of the factoring

agreement announced in August. A further improvement of NOK 100-200 million is

projected in the fourth quarter, and the effect is expected to increase in 2023.

The share of slow-moving stock has been reduced in the quarter, and Komplett

remains committed to continuing to lower inventory and improving stock

composition. For the year-to-date period, inventory has been reduced by NOK 426

million from last year's position, including NetOnNet pro forma figures.

"Over the last few quarters, the Komplett Group has faced challenging markets,

which primarily impact the B2C segment. The third quarter of 2022 has been no

exception, but the Group's strengths remain intact. Our multi-segment and

scalable online-first business model have enabled us to be agile in dealing with

market volatility. We are in the process of realising synergies from our latest

acquisition, and our leading cost position stands firm. This is reflected in our

operational costs, which have continued to decline year over year. Our online

-first business model has also protected the Group against increasingly high

energy costs in Europe.

"I am also pleased to report that we have continued to improve our inventory

position by reducing idle stock and building up an attractive consumer offering

before the peak season," said Lars Olav Olaussen, CEO of Komplett.

The presentation material and report for the third quarter of 2022 are attached

to this notice.

CEO Lars Olav Olaussen and CFO Krister Pedersen will present the results on 25

October 2022 at 09.00 CEST at Haakon VIIs gate 2, Oslo.

The event will also be available via a live webcast at the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20221025_4/

Questions will be addressed towards the end of the presentation.

A recorded version of the webcast will be available shortly after the webcast

has concluded.

For further inquiries, please contact:

Kristin Hovland, Head of Communication

Kristin.Hovland@komplett.com

Krister A. Pedersen, CFO

Krister.Pedersen@komplett.com

About Komplett ASA

Komplett Group is a leading online-first electronics and IT products retailer,

operating in Norway, Sweden and Denmark. Serving customers in the B2C, B2B and

distribution markets, the Group is deeply focused on delivering best in class

customer experience, built through decades of knowhow, expertise and deep

customer commitment. Komplett Group operates an efficient and scalable business

model that supports cost leadership and enables a competitive product offering.

This information is subject to the disclosure requirements pursuant to Section 5

-12 the Norwegian Securities Trading Act.