Komplett ASA

Quarterly Report • Jul 22, 2021

Highlights

Successfully listed on the Oslo Stock Exchange with the first trading day of 21 June

17 per cent revenue increase demonstrates strong continued growth

Gross margin continued to improve for B2C and B2B segments

49 per cent improvement in adjusted EBIT supported by a reduction in operational expenses of 1.4 percentage points from increased operational efficiencies and growth on the existing infrastructure

Komplett FLEX successfully launched – a revolutionary way to buy and consume electronic products, reduce waste and promote more sustainable consumption behaviors

Acquisition of Ironstone, a strategically attractive add-on for Komplett to play a role in the rapidly growing IT service segment

Page 1 / Report H1/Q2 2021 2020 2021 Q1 – Operating revenue - Side 1, Figur 1

Q1 – Operating result - Side 1, Figur 2 1 Alternative performance measure (APMs)

CEO comments

Komplett continued its strong growth trajectory, and increased revenues by approx. NOK 1 billion in the first half of 2021, fuelled by growth in all business segments. Solid progress in gross margins for B2B and B2C segments combined with continued opex improvements resulted in a near doubling of adjusted operating result.

We deliver solid profitable top line growth of 17 per cent in Q2, driven by good progress in all our business segments thanks to great efforts from our employees. This improvement comes on top of historically strong comparable figures from last year when our performance in B2C was positively affected by shifts in consumer behaviour following Covid-19. E-commerce has grown strongly since Covid-related restrictions were imposed in March 2020, and I firmly believe this shift in consumer behaviour will sustain.

Komplett has a cost leadership position in the consumer electronics industry in the Nordics. By operating with online as our primary channel and a highly automated central warehouse in Sandefjord, we translate top line growth into solid operational leverage. In second quarter our total operating expenses landed at 9.9 per cent, down 1.4 percentage-points from second quarter in 2020, further strengthening our cost leadership position.

Following a successful listing on the Oslo Stock Exchange in June, Komplett has recently announced the acquisition of 65 per cent of the shares in Ironstone, a leading supplier of cloud-based IT solutions and services.

There is a growing demand from customers to include basic IT set-up, cloud-based applications and IT security to Komplett's traditional hardware offering. The acquisition of Ironstone represents a strategically attractive add-on for Komplett to strengthen our offering in the growing service segment. Komplett considers selected M&A as a potential lever for delivering on our strategy. We will especially be looking for opportunities to strengthen our services offering, accelerating our sustainability agenda as well as opportunities for consolidation that can strengthen our commercial position or deliver cost synergies.

During second quarter, Komplett launched a new product subscription service offering, FLEX, in its B2C segment. FLEX allows customers to buy a wide range of products at a fixed monthly fee with a guaranteed residual value. Consumers can return and exchange their product after a down-payment period, while Komplett ensures that the used product is sold in the second-hand market.

In addition to being an attractive customer offering, FLEX represents a solid circular economy initiative supporting our sustainability agenda. We believe this new way of owning products will build close customer relationships with the opportunity to create customer loyalty and recurring revenue streams.

To sum up, we are well positioned to capitalize on the online migration trend, and I am confident that we have a solid commercial plan and product range that will offer our customers an attractive shopping experience. Our performance in second quarter is a reflection of our efficient operations, strong market position and solid market prospects.

Yours sincerely,

Lars Olav Olaussen, CEO

Komplett Group Key figures

Amounts in NOK million	Quarter		Year to date	Full year
	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Operating revenue	2 409	2 061	5 036	4 065	9 866
Growth (%)	16,9 %	33,1 %	23,9 %	23,2 %	30,8 %
Gross profit ¹	331	295	694	570	1 318
Gross margin (%) ¹	13,7 %	14,3 %	13,8 %	14,0 %	13,4 %
Operating expenses (ex dep) (adj.) ¹	-206	-199	-443	-406	-905
Depreciation and amortisation	-32	-34	-65	-68	-137
Operating Cost Percentage ¹	-9,9 %	-11,3 %	-10,1 %	-11,7 %	-10,6 %
EBIT (adj.) ¹	94	63	186	96	276
EBIT margin (adj.) (%) ¹	3,9 %	3,0 %	3,7 %	2,4 %	2,8 %
One-off cost	-9	-	-11	-	-
EBIT	85	63	175	96	276
Net financials	-6	-4	-10	-10	-24
Profit before tax	78	59	165	85	253
Profit before tax (%) ¹	3,3 %	2,8 %	3,3 %	2,1 %	2,6 %
Investments (CAPEX)	15	9	24	17	39
Net Interest Bearing Debt ¹	626	344	626	344	-6
Operating Free Cash Flow ¹	-29	-16	-215	-6	382

1 Alternative performance measure (APMs)

EBIT margin (adj.)¹

Q1 – Gross margin – Side 3, Figur 1

Page 3 / Report H1/Q2 2021 Q1 – EBIT (asj) (%)– Side 3, Figur 1 2020 2021

Operating Cost Percentage 12,1 % 11,3 % 10,6 % 9,2 % 10,3 % 9,9 %

Q1 Q2 Q3 Q4

Size per segment in Q2 2021

Q1 – Komplett group, Size per segment - Side 3, Figur 1

Komplett Group

Komplett Group continued its strong growth trajectory in the second quarter fuelled by growth in all business segments and delivering an increase in revenue by 17 per cent. The broad growth was a result of its existing infrastructure delivering great scale in operating expenses, which resulted in a 49 per cent improvement in adjusted EBIT.

For the first half of 2021 total revenues were NOK 5 036 million which is up from NOK 4 065 million in the first half of 2020, equalling a growth of 24 per cent. In the first half-year, revenue growth in the B2C segment was front-loaded, with first quarter growth of 28 per cent compared to 3.4 per cent in the second quarter. Growth in the first quarter was positively impacted by Covid-19, which was beneficial for the consumer electronic market and e-commerce specifically. Adjusted EBIT for the first half of 2021 was NOK 186 million compared to NOK 96 million last year, corresponding to an increase of 94 per cent. During the same period, adjusted EBIT margin increased from 2.4 per cent to 3.7 per cent.

Broad-based and solid revenue growth

Komplett Group delivered revenue growth of 17 per cent in the second quarter of 2021, from NOK 2 061 million to NOK 2 409 million, on top of solid growth of 33 per cent last year. The strongest growth was delivered by the B2B segment and the Distribution segment, which grew sales by 27 per cent and 50 per cent respectively. The B2B segment succeeded in attracting new customers and increasing sales from existing customers, and both on average order value and number of purchases. For the Distribution segment the growth was driven by full year effects of distribution agreements signed last year and a new distribution agreement signed in 2021. The B2C segment managed to grow by 3 per cent, following historically high demand last year boosted by increased consumer demand during Covid-19.

Gross margin improvements, disguised by negative mix effects

Gross profit for the second quarter improved by 12 per cent from NOK 295 million last year to NOK 331 million in 2021, driven by increased revenue and underlying gross margin improvement. The overall gross margin declined from 14.3 per cent to 13.7 per cent as a result of the negative mix effects from the Distribution segment, with significant sales growth at lower margins. These distribution agreements are well suited for Komplett's infrastructure with very low handling cost and thus reducing operating expenses in relation to percentage of sales. The underlying gross margin improvement in the B2C and B2B segments was 0.8 and 0.5 percentage points respectively, driven by better trade terms, better campaign planning and higher share of revenue from private label products.

Economies of scale

Operating expenses including depreciation but excluding one-off costs increased from NOK 232 million last year to NOK 238 million in the second quarter this year, equalling an increase of 3 per cent, and is related to wage inflation and revenue growth. Operating expenses as a percentage of revenue improved from 11.3 per cent in the second quarter of 2020 to 9.9 per cent in the second quarter of 2021 as a result of growth on the existing infrastructure made for handling a high number of transactions, especially in the Distribution segment. Operating expenses in the second quarter are seasonally lower than the other quarters of the year due to the holiday payment structure in Norway where accrued holiday pay is paid out in June rather than with ordinary salaries. This difference equals approx. NOK 15 million compared to other quarters.

Komplett successfully listed on the Oslo Stock Exchange the 21 of June 2021. The operating expenses for the listing process have been booked as a one-off cost. It amounted to NOK 9 million in the second quarter and NOK 11 million in total for the first half of 2021. No significant one-off costs are expected for the remainder of the year.

Solid operating result

Adjusted EBIT increased from NOK 63 million last year to NOK 94 million in the second quarter this year due to both increased revenue and improved operational efficiencies. The 49 per cent increase should be seen in relation to the revenue growth of 17 per cent. Adjusted EBIT margin increased from 3.0 per cent of revenue last year to 3.9 per cent this year. The three most significant drivers behind improvement in the adjusted EBIT margin are revenue growth, improved gross margins in the B2C and B2B segments and efficiency and scalability of the business model as a whole.

Cash-flow and financial position

Cash flow from operating activities was NOK 15 million for the second quarter and a negative of NOK 140 million for the first half of 2021. The corresponding figures for last year was NOK 1 million and NOK 42 million respectively. The softer cash flow in the first half of 2021 is mainly a result of an increase in net working capital related to higher inventory levels. Inventories were low at the end of last year due to strong revenue growth in the fourth quarter of 2020. This affected the purchasing of goods and hence cash flow in the first quarter of 2021. Inventory was also low at the end of the second quarter of 2020 following strong sales. In addition, Komplett has secured positions in goods related to semi-conductor shortages in the market, including securing enough laptops in advance of back-to-school campaigns in August.

Another reason for the increase in net working capital was the rise in accounts receivables. This increase was due to the strong growth in revenue in the B2B and Distribution segments due to customer credit terms. There are limited losses on accounts receivables, both now and from a historical perspective.

Cash flow from investing activities was NOK 14 million for the quarter and NOK 23 million so far in 2021. The corresponding figures for 2020 was NOK 10 and NOK 17 million respectively. The increase in investing activities resulted from IT invest-

ments.

During the second quarter and prior to the listing on the Oslo Stock Exchange, Komplett Group paid out a dividend of NOK 400 million. This dividend was financed by a new RCF facility of NOK 500 million of which NOK 400 million was utilized. The equity ratio was 23 per cent in the end of the second quarter compared to 30 per cent during the same quarter last year.

Overall, liquidity remains in a good position and has been strengthened compared to last year. Total credit facilities include an overdraft of NOK 500 million and SEK 100 million, in addition to a revolving credit facility of NOK 500 million. At the end of the second quarter, NOK 243 million of the overdraft facilities and NOK 400 million of the revolving credit facility were utilized. Including available cash of NOK 18 million, the liquidity reserve was NOK 474 million at the end of second quarter compared to NOK 145 million one year earlier. Net interest-bearing debt was NOK 626 million equalling a leverage ratio (NIBD / LTM EBITDA¹) of 1.5x at the close of the second quarter 2021. Comparable figures for same period last year were a net interest-bearing debt of NOK 344 million and a leverage ratio of 1.8x.

¹ Alternative performance measure (APMs)

economies of scale

Significant

39% growth in sales of private label products

Q2 2021 compared to same period 2020

Attractive distribution agreements

Launched product subscription scheme

for sustainable consumption

391 000 unique B2C customers in Q2 2021 down 2.5% from same period 2020

B2C Giant step in operating margin

Revenue

Operating revenue for B2C in the second quarter was NOK 1 371 million, compared to NOK 1 325 million for the same period in 2020. This was an increase of 3 per cent, on top of the strong growth of 38 per cent in the same quarter last year.

The rise of e-commerce during the Covid-19 pandemic was an important driver of the strong growth in the second quarter of last year. Growth in the second quarter of 2021 was driven by the positive response to campaigns, especially in the component and gaming categories. Norway and Sweden delivered growth of 10 per cent and 5 per cent respectively. Denmark had a decline of 15 per cent mainly due to a reduced market demand in the second quarter.

Gross profit

Gross profit was NOK 227 million in the second quarter which represented an increase of NOK 18 million compared to the same quarter in 2020. Gross margin increased by 0.8 percentage points to 16.6 per cent in the period and is on top of the improvements achieved last year. The gross margin improvement was especially strong in the product categories such as Components & Gaming and White Goods & Home and was also driven by better terms from suppliers combined with the increased sales of private label products.

Operating expenses

Total operating expenses were NOK 172 million in the second quarter, compared to NOK 166 million for the same period in 2020. Targeted marketing activities together with brand building activities have increased marketing costs compared to last year. Personnel expenses as a share of revenue remained on the same level as the second quarter of last year, while continuous focus on operational efficiencies has decreased other operating expenses as a share of revenue.

EBIT

EBIT for the second quarter was NOK 56 million, compared to NOK 44 million in the second quarter of 2020. This equals to an EBIT margin of 4.1 per cent compared to 3.3 per cent last year. The improvement is mainly driven by better gross margin.

B2C Key figures

Amounts in NOK Million		Quarter	Year to date	Full year
	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Operating revenue	1 371	1 325	2 944	2 555	6 142
Growth (%)	3,4 %	37,5 %	15,2 %	24,1 %	25,8 %
Gross profit ¹	227	210	478	392	924
Gross margin (%) ¹	16,6 %	15,8 %	16,2 %	15,3 %	15,1 %
Operating expenses (ex dep)	-160	-152	-337	-311	-677
Depreciation and amortisation	-12	-13	-25	-26	-54
Operating Cost Percentage ¹	-12,5 %	-12,5 %	-12,3 %	-13,2 %	-11,9 %
EBIT	56	44	116	55	194
EBIT margin (%)¹	4,1 %	3,3 %	3,9 %	2,1 %	3,2 %

1 Alternative performance measure (APMs)

Q1 – B2C, Operating result + Total operating expenses- Side 5, Figur 2

EBIT

2O2O 2O21

B2B Record-high EBIT margin

Revenue

Operating revenue for the B2B segment in the second quarter amounted to NOK 330 million, compared to NOK 260 million for the same period in 2020. The increase of 27 per cent was driven by core product categories such as mobile phones and computers, combined with associated accessories. Norway and Sweden delivered growth of 17 per cent and 32 per cent respectively.

The B2B segment succeeded both in attracting new customers as well as maintaining and increasing loyalty from existing customers. The number of orders per customer increased throughout the quarter in addition to the order value per customer.

Gross profit

Gross profit was NOK 60 million in the second quarter, a growth of NOK 14 million compared to the same quarter in 2020. Gross margin increased by 0.5 percentage points to record high 18.2 per cent. Both the product mix and the customer mix spurred this progress. The strong sales of Komplett-branded computers, along with the increased sales of other private label products, have also contributed to the improved gross margin.

Operating expenses

Tight control over both fixed and variable expenses has resulted in an improvement in operating expenses of 1.0 percentage point in the second quarter, relative to the operating revenue. Total operating expenses were NOK 26 million in the second quarter, equal to 7.8 per cent of revenue, compared to NOK 23 million, or 8.8 per cent of revenue, in the same period last year.

EBIT

EBIT for the second quarter was NOK 34 million, compared to NOK 23 million in the second quarter of 2020. EBIT margin was 10.4 per cent compared to 8.9 per cent the same quarter last year, mainly due to sales growth, better gross margin and more efficient operations.

B2B Key figures

Amounts in NOK Million		Quarter	Year to date	Full year
	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Operating revenue	330	260	692	572	1 286
Growth (%)	27,1 %	5,5 %	20,9 %	7,5 %	14,3 %
Gross profit ¹	60	46	126	99	219
Gross margin (%) ¹	18,2 %	17,7 %	18,2 %	17,2 %	17,0 %
Operating expenses (ex dep)	-24	-21	-49	-45	-101
Depreciation and amortisation	-2	-2	-4	-4	-9
Operating Cost Percentage ¹	-7,8 %	-8,8 %	-7,8 %	-8,7 %	-8,6 %
EBIT	34	23	72	49	109
EBIT margin (%)¹	10,4 %	8,9 %	10,4 %	8,5 %	8,5 %

1 Alternative performance measure (APMs)

Q1 – B2B, Operating result + Total operating expenses- Side 7, Figur 2

Significant growth, Distribution driven by new distribution agreements

Revenue

Operating revenue for the Distribution segment in the second quarter was NOK 708 million, compared to NOK 472 million for the same period 2020. The 50 per cent increase was driven by new distribution agreements and the full-year effect of new agreements from last year.

The new distribution agreements primarily include a significant share of products at lower gross margin but is well-suited for Komplett's infrastructure with low handling costs. Looking at product categories, the growth was especially strong within the Handheld & Accessories category predominantly driven by increased sales of mobile phones.

Gross profit

Gross profit was NOK 43 million in the second quarter compared to NOK 37 million the same quarter of 2020. Gross margin decreased by 1.6 percentage points to 6.1 per cent, due to the mix effects mentioned above.

Operating expenses

Due to better efficiencies in logistics and the increased economies of scale from new distribution agreements, the operating expenses were NOK 25 million in the second quarter of 2021 equalling the second quarter of last year. Measured as a percentage of revenue, the operating expenses decreased from 5.3 per cent last year to 3.6 per cent in 2021.

EBIT

EBIT for the second quarter was NOK 18 million, compared to NOK 11 million in the second quarter last year. The EBIT margin was 2.5 per cent compared to 2.4 per cent for the same period last year.

Distribution Key figures

Amounts in NOK Million		Quarter	Year to date	Full year
	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Operating revenue	708	472	1 397	932	2 426
Growth (%)	49,9 %	42,2 %	49,9 %	33,5 %	59,4 %
Gross profit ¹	43	37	87	74	166
Gross margin (%) ¹	6,1 %	7,7 %	6,2 %	7,9 %	6,8 %
Operating expenses (ex dep)	-24	-24	-50	-50	-110
Depreciation and amortisation	-1	-1	-3	-3	-5
Operating Cost Percentage ¹	-3,6 %	-5,3 %	-3,8 %	-5,7 %	-4,8 %
EBIT	18	11	33	21	51
EBIT margin (%)¹	2,5 %	2,4 %	2,4 %	2,3 %	2,1 %

1 Alternative performance measure (APMs)

Q1 – Distribution, Operating revenue + Gross margin - Side 9, Figur 1

Q1 – Distribution, Operating result + Total operating expenses- Side 9, Figur 2

Other / IFRS 16

Amounts in NOK Million		Quarter	Year to date	Full year
	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Operating revenue	0	3	3	6	12
Gross profit ¹	0	3	3	5	9
Operating expenses (ex dep)	1	-1	-5	-0	-17
Depreciation and amortisation	-16	-17	-33	-34	-69
EBIT (adj.) ¹	-15	-16	-35	-29	-77
One-off cost	-9	-	-11	-	-
EBIT	-24	-16	-46	-29	-77
Net financials	-6	-4	-10	-10	-24
Profit before tax	-30	-20	-56	-39	-100

1 Alternative performance measure (APMs)

Revenue and operating expenses

The most important events in the second quarter were the expenses for listing on the Oslo Stock Exchange mentioned below and a settlement of rent from a sublease agreement totalling NOK 3 million. The settlement had no effect on the EBIT but reduced both revenue and expenses by NOK 3 million compared to other quarters.

One-off cost

Komplett successfully listed on the Oslo Stock Exchange on 21 of June 2021. The operating expenses for the listing process were booked as a one-off cost and amounted to NOK 9 million in the second quarter and NOK 11 million in total for the first half of 2021. No significant one-off costs are expected for the remainder of the year.

Net financials

Net financial expenses were NOK 6 million for the second quarter of 2021, which was an increase of NOK 2 million compared to the second quarter of last year. The change was driven by the new revolving credit facility.

Other / IFRS 16 information

"Other" represents group costs that are not allocated to the operating segments B2C, B2B and Distribution. This applies when the costs are difficult to give a fair allocation to the segments. Typical cost elements under this segment are management costs and group strategic initiatives.

The different effects of IFRS (International Financial Reporting Standards), especially IFRS 16, are not part of the operational measures and are excluded from the operating segments B2C, B2B and Distribution.

For additional explanations, please refer to note 4 – Segment Information in this report.

Financials for the Group

Consolidated income statement

(H1 figures)

Total operating revenue was NOK 5 036 million in the first half of the year, compared to NOK 4 065 million same period last year. The increase was mainly due to improved sales and marketing campaigns for B2C, new customer contracts for B2B combined with new distribution agreements. Growth in the first quarter was positively impacted by Covid-19, mainly related to the B2C segment.

Cost of goods sold was NOK 4 342 million in the first half of the year, compared to NOK 3 496 million in the same period last year. The increase was driven by higher sales, combined with a decreased gross margin of 0.2 percentage points due to mix effects.

Operating expenses was NOK 519 million in the first half of the year, compared to NOK 474 million same period last year. The increase was driven by sales growth and higher activity, as well as IPO related expenses of NOK 11 million this year. Measured as a precentage of sales operating expenses declined significantly.

Operating result (EBIT) in the first half of the year increased by NOK 79 million to NOK 175 million.

Net financial income and expenses in the first half of the year was negative by NOK 10 million, which was equal to the same period last year.

Tax expenses declined by NOK 9 million in the first half of the year, from a cost of NOK 15 million last year to NOK 6 million this year. A taxable loss has previously not been included in the deferred tax benefit calculation and hence reported as an extraordinary tax revenue. This was resolved in March 2021, and the positive tax and equity effect of NOK 22 million was included in the consolidated statement of profit and loss first quarter this year.

Profit for the period first half of the year increased by NOK 88 million to NOK 158 million compared to the same period last year, driven by higher sales.

Consolidated cash flow

(H1 figures)

Cash flow from operating activities amounted to a negative of NOK 140 million for the first half of this year compared to NOK 42 million against the same period last year. The change in net cash flow from operating activities was primarily related to higher inventory build-up in the first quarter and increased receivables related to high growth in the B2B and Distribution segments, partially offset by increased revenue and improved profitability.

Cash flow from investing activities amounted to a negative of NOK 23 million for the first half of this year versus a negative of NOK 17 million against the same period last year. The change was primarily due to planned activities and investments in IT projects.

Cash flow from financing activities amounted to NOK 127 million for the first half of this year versus a negative of NOK 61 million against the same period last year due to a change in the utilization of the overdraft facility.

Financial position and liquidity

Non-current assets amounted to NOK 885 million at the end of the second quarter of this year compared to NOK 945 million the same period last year. The lower level was mainly related to IFRS 16-effects on land, buildings and other real estate, and a decrease in intangible assets.

Current assets amounted to NOK 1 991 million at the end of the second quarter this year, compared to NOK 1 613 million the same period last year, mainly due to increased inventory of NOK 216 million, to meet higher demand, and increased receivables in the B2B segments. Total cash and cash equivalents amounted to NOK 18 million at the end of the quarter versus NOK 15 million over the same period last year. The Group's credit facilities include an overdraft of NOK 500 million and SEK 100 million, plus a revolving credit facility of NOK 500 million. Including available cash, the liquidity reserve at the end of the second quarter this year was NOK 474 million NOK compared to NOK 156 million one year earlier.

Equity was NOK 669 million at the end of the second quarter this year compared to NOK 767 million same period last year. The decrease in equity was due to paid dividend this year, partly offset by increased profits.

Total liabilities amounted to NOK 2 207 million at end of the second quarter this year, compared to NOK 1 791 million the same period last year. The largest driver was the increase in long-term debt to finance the dividend payment.

Total equity and liabilities amounted to NOK 2 876 million at the end of the second quarter this year versus NOK 2 557 million same period last year.

Special events, Risks and Financial targets

Agreement to acquire majority of the

shares in Ironstone

Early July, Komplett entered into an agreement to acquire 65 per cent of the shares in Ironstone Holding AS, a leading supplier of cloud-based IT solutions and services. This acquisition meets the growing demand from corporate customers for basic IT services to complement traditional hardware purchases. The pure cloud technology and IT service offered by Ironstone makes a strategically good fit with Komplett's wide-ranging customer base. The transaction is expected to be completed during the third quarter of 2021.

Sustainable product subscription module launched

During Q2 2021, the Group introduced the concept "Komplett FLEX". This is a pilot concept introduced in the Norwegian and Swedish markets, through purchases made by B2C customers at Komplett.no and Komplett.se. Komplett FLEX allows the customers to choose a new payment solution, FLEX, which allows them to purchase the product by paying a monthly fixed amount for a period of 24 months.

The fixed amount is paid to a third party who assumes the credit risk for the customers' payments. Pursuant to this arrangement, the customer is entitled to return the purchased product to another third-party following expiry of the subscription period, if it purchases a new product from the Group on the same FLEX terms and conditions. The customer may also choose to keep the product and continue the monthly payments for an additional period. The concept allows Komplett to provide more flexibility to customers and participate in the second-hand market, without having to take any credit risk for the customers' monthly payments nor any product and re-sale risk in the second-hand market. This is a revolutionary way to buy and consume electronic products and will reduce waste and provide for more sustainable consumption behaviours.

Risks and uncertainties

Komplett Group is subject to several risks, including market and competition risk, operational and financial risks, such as currency, interest, credit and liquidity risk. The board and executive management are continuously monitoring the Group's risk exposure and the Group constantly strives to improve its internal control processes. Below is a summary of the key risks for the group over the next six months.

The Group operates in an intensely competitive and rapidly growing industry. In the B2C segment, changes in customer behaviour and preferences are impacting both sales and profitability. Uncertainties within relation to the post-effects of Covid-19 and changes in consumer spending may result in lower growth in the B2C segment over the next 6-8 months.

Potential shortage in product availability, such as the global shortage of electronic components and microchips, could have an adverse effect on the Group's ability to continue its sales growth trajectory. The Group will focus on maintaining its close cooperation with key suppliers to ensure timely deliveries prior to the peak-season.

The Group's operations include online payment transactions and thus exposes its sales channels to the risk of criminal activity such as credit card fraud. Although having systems in place to identify and block attempts on credit card fraud, the Group has in the past experienced attempts that have been successful and has led to some fraud cases.

Risks and uncertainties must be taken into consideration when looking at financials targets below.For additional explanation regarding risks and uncertainties, please refer to the listing prospectus dated 8 June 2021, section 2 and note 4 in the company's Annual Report for 2020.

Financial targets

Komplett Group is aming for an annual revenue growth in the level of 10 per cent. For 2025, the Group targets revenue to exceed NOK 15 billion and improved EBIT margin yearon-year across all segments. For 2025, the Group targets gross-margin at around 15 per cent, and EBIT margin at around 5 per cent.

Annual revenue growth targets by segment

• B2C in the level of 10-12 per cent
• B2B in the level of 8-10 per cent
• Distribution expected in the level of 5 per cent, with significant higher growth in 2021 due to new agreements in place.

Further, Komplett Group expects annual operational capital expenditures in the level of NOK 50 million. In order to expand supply chain capacity and upgrade of IT systems planned for in 2022 to 2023 the Group expects additional investments in the level of NOK 400 million.

Komplett Group should have a sufficient capital structure to provide financial flexibility and support growth targets and dividend policy. The Group targets stable growing dividends year-on-year, and a pay-out ratio of 60-80 per cent of net profit adjusted for one-off and special items. Effective tax rate in the level of statutory rate in Norway (currently 22 per cent).

Statement from the board

We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2021 has been prepared in accordance with IAS 34 – Interim Financial Reporting, and gives a true and fair view of the Group's assets, liabilities, financial position and profit and loss as a whole.

We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties' transactions.

Sandefjord, 21 July 2021 Board of Directors, Komplett ASA

Nils K. Selte Chairman

Jo Olav Lunder Board member

Jen Lee Koss Board member

Lars Bjørn Thoresen Board member

Sarah Willand Board member

Anders Odden Board member employees representative

Nora Elin Eidås Board member employees representative Lars Olav Olaussen CEO

Financial statements and notes

Condensed consolidated interim statement of profit or loss

Amounts in NOK million	Note	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
TOTAL OPERATING REVENUE	4,5	2 409	2 061	5 036	4 065	9 866
Cost of goods sold		-2 078	-1 765	-4 342	-3 496	-8 547
Employee benefit expenses		-108	-103	-235	-208	-465
Depreciation and amortisation expense	7,8	-32	-34	-65	-68	-137
Other operating expenses	3,7	-106	-95	-219	-198	-440
Total operating expenses		-2 325	-1 998	-4 861	-3 970	-9 589
Operating result (EBIT)		85	63	175	96	276
Net finance income and expenses	7	-6	-4	-10	-10	-24
Profit before tax		78	59	165	85	253
Tax expense	3	-15	-11	-6	-15	-32
PROFIT FOR THE PERIOD		64	47	158	70	221
OTHER COMPREHENSIVE INCOME
Items that will or may be reclassified to profit or loss:
Foreign currency rate changes		6	-0	-7	9	9
TOTAL COMPREHENSIVE INCOME		70	47	152	79	230
Earnings per share (basic and diluted)	6	-49,38	0,94	-61,03	0,76	5,20

Condensed consolidated interim statement of financial position

Amounts in NOK million	Note	30/06/2021	30/06/2020	31/12/2020
		Unaudited	Unaudited	Audited
NON-CURRENT ASSETS
Goodwill	8	356	359	358
Software	8	108	120	113
Other intangible assets	8	57	58	58
Total intangible assets		521	537	529
Right-of-Use assets	7,8	251	287	255
Machinery and fixtures	8	31	43	36
Total property, plant and equipment		282	331	291
Deferred tax asset		33	21	32
Investments in equity-accounted associates		9	7	9
Other receivables	7	40	49	44
Total other non-current assets		82	77	85
TOTAL NON-CURRENT ASSETS		885	945	905
CURRENT ASSETS
Inventories		1 037	821	880
Trade receivables - regular		550	399	491
Trade receivable from deferred payment arrangements		131	153	152
Other current receivables	7	256	225	258
Cash and cash equivalents		18	15	54
TOTAL CURRENT ASSETS		1 991	1 613	1 834
TOTAL ASSETS		2 876	2 557	2 739

Condensed consolidated interim statement of financial position

Amounts in NOK million	Note	30/06/2021	30/06/2020	31/12/2020
		Unaudited	Unaudited	Audited
EQUITY
Share capital		29	29	29
Share premium		1 075	1 075	1 075
Other equity		-435	-337	-187
TOTAL EQUITY		669	767	917
LIABILITIES
Non-current liabilities
Long-term loans	12	400	-	-
Non-current lease liabilities	8	231	269	236
Total non-current liabilities		631	269	236
Current liabilities
Bank overdraft	12	243	359	48
Trade payables		833	665	934
Public duties payable		182	152	247
Current income tax		29	24	41
Current lease liabilities	8	81	84	82
Other current liabilities		208	238	233
Total current liabilities		1 576	1 521	1 586
TOTAL LIABILITIES		2 207	1 791	1 821
TOTAL EQUITY AND LIABILITIES		2 876	2 557	2 739

Condensed consolidated interim statement of changes in equity

Amounts in NOK million	Share capital	Share premium	Other equity	Total equity
At 1 January 2020	29	1 075	-416	688
Profit for the period	-	-	70	70
Other comprehensive Income	-	-	9	9
Total comprehensive Income for the period	-	-	79	79
Other changes	-	-	-0	-0
Contributions by and distributions to owners	-	-	-0	-0
At 30 June 2020	29	1 075	-337	767

At 1 January 2021	29	1 075	-187	917
Profit for the period	-	-	158	158
Other comprehensive Income	-	-	-7	-7
Total comprehensive Income for the period	-	-	152	152
Other changes	-	-	0	0
Dividend/Group contribution	-	-	-400	-400
Contributions by and distributions to owners	-	-	-400	-400
At 30 June 2021	29	1 075	-435	669

Condensed consolidated interim statement of cash flows

Amounts in NOK million	Note	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax		78	59	165	85	253
Depreciation and amortisation expense		32	34	65	68	137
Long-term incentive program		0	-	0	-	-
Payment received on finance lease receivable		2	2	5	4	9
Interest on finance lease receivable	8	0	1	1	1	2
Share of post-tax profits from equity accounted investments		-1	-	-2	-0	-2
Net finance items		7	4	12	11	21
Changes in deferred payment arragements receivables		1	11	21	10	11
Changes in inventories, trade payables and trade receiables		-16	-89	-318	-155	-36
Currency effects		4	-0	-4	2	2
Other changes in accurals		-95	-20	-86	16	75
Net cash flows from operating activities		15	1	-140	42	472
Investing activities
Investments in property, plant and equipment		-15	-9	-24	-17	-39
Dividend from associated company	7	1	-	1	-	-
Net cash used in investing activities		-14	-9	-23	-17	-39
Financing activities
Increase in/repayment of liabilities		400	-	400	-	-
Changes in bank overdrafts		43	33	196	-13	-324
Principal paid on lease liabilities	8	-18	-18	-36	-36	-72
Interest paid on lease liabilities	8	-3	-4	-7	-7	-14
Net Interest paid on loans and overdrafs		-4	-1	-6	-5	-10
Distributions to owners		-420	-	-420	-	-10
Net cash (used in)/from financing activities		-2	10	127	-61	-430
Net increase in cash and cash equivalents		-1	2	-36	-35	4
Cash and cash equivalents at beginning of period		19	13	54	50	50
Cash and cash equivalents at end of year		18	15	18	15	54

Notes disclousure to the consolidated interim financial statements

Unaudited for the period ended 30 June 2021

NOTE 1 General information and basis for preparation

Komplett AS and its subsidiaries' (collectively, the Group) operational activities are related to sale of consumer and business electronics in Norway, Sweden and Denmark, to consumers, corporates and retailers.

All amounts in the interim financial statements are presented in NOK million unless otherwise stated.

These condensed interim financial statements have not been audited.

The Group's condensed interim financial statements are prepared according to IAS 34 Interim Financial Reporting. The interim reporting does not include all information that is normally prepared in a full annual financial statement and should be read in conjunction with the Group's consolidated financial statement for the year ended 31 December 2020.

The accounting policies used in the Group's interim reporting are consistent with the principles presented in the approved consolidated financial statement for 2020. There are no significant effects from adoption of new standards effective as of 1 January 2021. The Group has not voluntarily adopted any other standard that has been issued but is not yet mandatory.

NOTE 2 Critical accounting estimates and judgements

The preparation of interim condensed financial statements requires management to make estimates and judgements that impact how accounting policies are applied and the reported amounts for assets, liabilities, income and expenses. Actual results may differ from these estimates. The accounting estimates and judgements are consistent with those in the consolidated financial statements for 2020.

NOTE 3 Significant transactions and events

The tax expense for the period Q1 2021 has been reduced by NOK 22 million as a result of a positive outcome in a tax case that applies to the years 2012 to 2016 and which has not previously been included in the basis for capitalized deferred tax assets.

The Group had expenses amounting to NOK 11.5 million related to acquisition in the first half of the year. These expenses included fees to external advisors in the Company's initial public offering process (i.e. the Offering and the Listing). This cost is classified as Other operating expenses.

NOTE 4 Segment Information

Amounts in NOK million	B2C	B2B	Distribution	Other	IFRS 16	Total
Q2 2021
TOTAL OPERATING REVENUE	1 371	330	708	3	-3	2 409
Cost of goods sold	-1 143	-270	-665	0	-	-2 078
Employee benefit expenses	-73	-11	-13	-10	-	-108
Depreciation and amortisation expense	-12	-2	-1	-0	-16	-32
Other operating expenses	-86	-12	-10	-19	21	-106
Total operating expenses	-1 315	-296	-690	-29	5	-2 325
Operating result (EBIT)	56	34	18	-26	2	85
Net finance income and expenses	-	-	-	-3	-3	-6
PROFIT BEFORE TAX	56	34	18	-29	-1	78
Q2 2020
TOTAL OPERATING REVENUE	1 325	260	472	6	-3	2 061
Cost of goods sold	-1 115	-214	-436	-0	-	-1 765
Employee benefit expenses	-70	-9	-14	-11	-	-103
Depreciation and amortisation expense	-13	-2	-1	-0	-17	-34
Other operating expenses	-83	-11	-10	-13	22	-95
Total operating expenses	-1 281	-237	-461	-24	5	-1 998
Operating result (EBIT)	44	23	11	-18	2	63
Net finance income and expenses	-	-	-	-1	-3	-4
PROFIT BEFORE TAX	44	23	11	-19	-1	59
Amounts in NOK million	B2C	B2B	Distribution	Other	IFRS 16	Total
YTD 2021
TOTAL OPERATING REVENUE	2 944	692	1 397	9	-6	5 036
Cost of goods sold	-2 466	-566	-1 311	0	-	-4 342
Employee benefit expenses Depreciation and amortisation expense	-157 -25	-24 -4	-29 -3	-23 -0	- -33	-235 -65
Other operating expenses	-180	-25	-21	-36	43	-219
Total operating expenses	-2 828	-619	-1 364	-59	10	-4 861
Operating result (EBIT) Net finance income and expenses	116 -	72 -	33 -	-50 -5	4 -6	175 -10
PROFIT BEFORE TAX	116	72	33	-55	-1	165
YTD 2020
TOTAL OPERATING REVENUE	2 555	572	932	12	-5	4 065
Cost of goods sold	-2 163	-474	-858	-1	-	-3 496
Employee benefit expenses	-139	-21	-29	-19	-	-208
Depreciation and amortisation expense	-26	-4	-3	-1	-33	-68
Other operating expenses	-172	-24	-20	-25	43	-198
Total operating expenses	-2 500	-523	-911	-45	10	-3 970
Operating result (EBIT)	55	49	21	-33	4	96
Net finance income and expenses	-	-	-	-4	-6	-10

NOTE 5 Revenues from contracts with customers

Amounts in NOK million	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Disaggregation based on type of customers
Sale to consumers (B2C)	1 371	1 325	2 944	2 555	6 142
Sale to corporates (B2B)	330	260	692	572	1 286
Sale to resellers (B2B)	708	472	1 397	932	2 426
Other	0	3	3	6	12
Total	2 409	2 061	5 036	4 065	9 866
Amounts in NOK million	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Revenues based on geographic location of customers
Norway	1 593	1 246	3 241	2 469	5 996
Sweden	740	718	1 601	1 421	3 459
Denmark	76	97	194	176	410
Total	2 409	2 061	5 036	4 065	9 866
Amounts in NOK million	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Revenues by product or service
Sale of goods	2 386	2 037	4 986	4 017	9 765
Commission from deferred payment and sale of insurance	23	24	50	49	101
Total	2 409	2 061	5 036	4 065	9 866

NOTE 6 Earnings per share

The basic earnings per share are calculated as the ratio of the profit for the period that is due to the shareholders of the parent divided by the weighted average number of ordinary shares outstanding. On the 28th of May the shareholders meeting resolved to merge the two separate classes of shares , by changing all shares to ordinary shares. For the calculation of earning per share this is treated as a settlement of the preference shares by issuing ordinary shares. The difference between the fair value the ordinary shares "issued" and the carrying amount of the preference shares settled is charged against the result allocated to the holders of ordinary shares. Dividends paid or payable to the holders of preference shares is also charged against the result allocated the holders of ordinary shares.

Amounts in NOK million	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Revenues based on geographic location of customers
Profit for the period	64	47	158	70	221
Dividend payable to preference share holders	-19	-27	-48	-54	-108
Additional dividend paid to holders of preference shares	-173	-	-173	-	-
Difference between fair value and carrying amount on conversion*	-1 775	-	-1 775	-	-
Result allocated to the holders of ordinary shares	-1 903	20	-1 837	16	113
Average number of shares
Shares at the beginning of the period	4 335	4 335	4 335	4 335	4 335
Effect of merging the two classes of shares	3 372	-	1 686	-	-
Average number of shares	7 707	4 335	6 021	4 335	4 335
Effect of 1 to 5 split**	38 536	21 677	30 106	21 677	21 677
Earnings per share (basic and deluted)	-49,38	0,94	-61,03	0,76	5,20

* Canica hold 100% of the preference shares and close to 100% of the ordinary shares. The theoretical loss/charge towards the result allocated to the holders of ordinary shares is an off market transaction, and the charge included above holds little meaning and is just theoretical.

** In May the shareholders meeting resolved a 1 to 5 split of the shares in the company. For the calculation of earnings per share the split is adjusted for retrospectively.

As earnings per share reflects a theoretical market transaction we believe that it gives more meaning to calculate earnings per share by ignoring the different classes of shares from the beginning. By dividing the result for the period on the total number of shares adjusted for the 1 to 5 split (72 255 155). This would give the following adjusted earnings per share:

	Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Adjusted earnings per share	0,88	0,66	2,19	0,98	3,06

Diluted earnings per share.

There are no instruments or options that will have a dilutive effect on earnings per share as of 30.06.2021.

NOTE 7 Leases

The Group's right of use assets, lease liabilities and lease receivables are categorized and presented in the table below:

Amounts in NOK million	Land and buildings
RIGHT OF USE ASSETS
At 1 January 2021	255
Additions incl. adjustments to existing contracts	32
Amortisation	-33
Foreign currency effects	-3
At 30 June 2021	251
Economic life/lease term	1-9 years
Amortisation method	Straight line

LEASE LIABILITIES
At 1 January 2021	318
Additions	32
Interest expenses	7
Lease payments	-43
Foreign currency effects	-3
At 30 June 2021	311
Whereof:
Current lease liabilities	81
Non-current lease liabilities	231

LEASE RECEIVABLE FROM FINANCE LEASE
At 1 January 2021	51
Additions	3
Interest income	1
Lease payments received	-6
At 30 June 2021	49
Whereof:
Current lease receivable	37
Non-current lease receivable	12

NOTE 8 Fixed assets and intangible assets

Amounts in NOK million	Goodwill	Software	Other intangi ble assets	Machinery, furniture, fittings	Right of use assets	Total
Carrying amount as of 1 January 2021	358	113	58	36	255	820
Additions	-	22	-	2	32	56
Disposals	-	-	-	0	-0	-0
Depreciation	-	-26	-	-7	-33	-65
Foreign currency effects	-1	-1	-2	-0	-3	-7
Carrying amount as of 30 June 2021	356	108	57	31	251	803

NOTE 9 Related party transactions

In addition to subsidiaries and associated companies, the Group's related parties inlude its majority shareholders, all members of the Board of Directors and key management, as well as companies in which any of these parties have either controlling interests, board appointments or are senior staff. All transactions have been entered into in accordance with the arms' length principle, meaning that prices and other main terms and conditions are deemed to be commercial.

All significant transactions with related parties that are not eliminated in the Group accounts are presented below:

Amounts in NOK million		Q2 2021	Q2 2020	YTD 2021	YTD 2020	FY 2020
Parties	Type of transactions
Kullerød Eiendom AS ¹	Lease of office and warehouse	6	6	13	12	25
F&H Asia Limited ¹	Purchase of products	8	6	21	15	82
Total		8	6	21	15	82

1 Related entities owned by the Company's ultimate parent company in the greater Canica group of companies.

NOTE 10 Share option plan

In connection with the Listing, a long-term incentive program for members of Management, key employees and certain identified young talents was implemented as a share option program. The program has been adopted by the Board of Directors of Komplett ASA (the "Company") to reward employees by enabling them to acquire Shares of the Company.

The strike price for the options granted are based on the final Offer Price including a premium of 3% annually from grant date until the options are vested.

The program is measured at fair value at the date of the grant and the value of the issued options is expensed over the vesting period which in this caseis gradually over three years after grant. The Black & Scholes option-pricing model have been used to calculate the fair value.

The cost of the employee share-based transaction is expensed over the average vesting period. The value of the issued options of the transactions that are settled with equity instruments (settled with the company's own shares) is recognised as salary and personnel cost in profit and loss and in other equity.

Social security tax on options is recorded as a liability and is recognised over the estimated vesting period.

NOTE 11 Financial instruments - fair value

The Group considers that the carrying amount of the following financial assets and financial liabilities are a reasonable approximation of their fair value:

• -
• Trade receivables Long-term loans
• Trade payables Debt to financial institutions
• Cash and cash equivalens

The Group has no other financial assets or liabilities valued at fair value.

NOTE 12 Loans an borrowings

Amounts in NOK million			30.06.2021	30.06.2020	31.12.2020
Parties	Type	Total facility	Utilized	Utilized	Utilized
Revolving Credit Facility	Long-term loans	Nok 500 million	400	-	-
Overdraft Facility	Bank overdraft	Nok 500 million	243	359	-
Credit Facility	Bank overdraft	SEK 100 million	12	-	48
Total			656	359	48

Changes in the periode

On 31 May 2021, Komplett ASA entered into a NOK 500 million unsecured revolving credit facility agreement with Skandinaviska Enskilda Banken AB (publ), with a three years' duration and 1 + 1 year renewal option. On 2 June 2021, the Company made an initial draw-down of the revolving credit facility of NOK 400 million with an initial margin at 1.45 per cent p.a.

NOTE 13 Top 20 shareholders

At 13 July 2021
Rank	# of shares	Stake	Name
1	39 705 209	54,95	CANICA INVEST AS
2	3 305 252	4,57	ABG SUNDAL COLLIER ASA
3	3 201 273	4,43	FOLKETRYGDFONDET
4	3 000 000	4,15	The Northern Trust Comp, London Br
5	1 443 206	2,00	UBS Europe SE
6	1 326 573	1,84	UBS AG
7	1 250 000	1,73	VERDIPAPIRFONDET HOLBERG NORGE
7	1 250 000	1,73	VERDIPAPIRFONDET HOLBERG NORDEN
9	1 150 000	1,59	The Bank of New York Mellon SA/NV
10	1 139 285	1,58	Citibank, N.A.
11	746 946	1,03	STOREBRAND NORGE I VERDIPAPIRFOND
12	693 281	0,96	Morgan Stanley & Co. Int. Plc.
13	642 139	0,89	Skandinaviska Enskilda Banken AB
14	499 215	0,69	R OG L INVEST AS
15	469 267	0,65	State Street Bank and Trust Comp
16	444 817	0,62	MUSTAD INDUSTRIER AS
17	420 473	0,58	NIAN AS
18	400 000	0,55	Skandinaviska Enskilda Banken AB
19	383 283	0,53	VERDIPAPIRFONDET EIKA SPAR
20	366 627	0,51	VERDIPAPIRFONDET EIKA NORGE

Attachment: Alternative Performance Measures (APMs)

The APMs used by Komplett Group are set out below (presented in alphabetical order):

EBIT adjusted: Derived from Financial Statements as operating result (EBIT) excluding one-off cost. The Group has presented this item because it considers it to be a useful measure to show Management's view on the efficiency in the profit generation of the Group's operations before one-off items.

Reconciliation

	Q2'21	Q2'20	H1'21	H1'20	FY'20
Total Operating revenue	2 409	2 061	5 036	4 065	9 866
EBIT	85	63	175	96	276
+ One-off cost	9	-	11	-	-
= EBIT adjusted	94	63	186	96	276
EBIT Margin adjusted	3,9 %	3,0 %	3,7 %	2,4 %	2,8 %

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 Management's view on the efficiency in the profit generation of the Group's operations as a percentage of total operating revenue.

Reconciliation

	Q2'21	Q2'20	H1'21	H1'20	FY'20
Total Operating revenue	2 409	2 061	5 036	4 065	9 866
EBIT	85	63	175	96	276
EBIT margin	3,5 %	3,0 %	3,5 %	2,4 %	2,8 %

EBIT Margin adjusted: EBIT adjusted as a percentage of total operating revenue. The Group has presented this item because it considers it to be a useful measure to show Management's view on the efficiency in the profit generation of the Group's operations before one-off items as a percentage of total operating revenue.

Reconciliation - see above under EBIT adjusted

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 useful measure to show 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

	Q2'21	Q2'20	H1'21	H1'20	FY 20
EBIT	85	63	175	96	276
- EBIT - IFRS 16	-2	-2	-4	-4	-8
+ Dep B2C, B2B, Dist. Other	16	17	33	34	71
= EBITDA exl IFRS 16	98	78	203	126	339

Gross Margin: Gross Profit (as defined below) as a percentage of total operating revenue. The Group has presented this item because it considers it to be a useful measure to show Management's view on the efficiency of gross profit generation of the Group's operations as a percentage of total operating revenue. Reconciliation - see below under Gross Profit

Gross Profit: Total operating revenue less cost of goods sold. The Group has presented this item because it considers it to be a useful measure to show Management's view on the overall picture of profit generation before operating costs in the Group's operations. Reconciliation

	Q2'21	Q2'20	H1'21	H1'20	FY'20
Total Operating revenue	2 409	2 061	5 036	4 065	9 866
- Cost of goods sold	-2 078	-1 765	-4 342	-3 496	-8 547
= Gross Profit	331	295	694	570	1 318
Gross Margin	13,7 %	14,3 %	13,8 %	14,0 %	13,4 %

Net Interest-Bearing Debt: Interest-bearing liabilities less cash and cash equivalents. The Group has presented this item because Management considers it to be a useful indicator of the Group's indebtedness, financial flexibility and capital structure.

Reconciliation

	Q2'21	Q2'20	H1'21	H1'20	FY'20
Long-term loans	400	-	400	-	-
+ Bank overdraft	243	359	243	359	48
- Cash/cash equivalents	-18	-15	-18	-15	-54
= Net Int.-Bear. Debt	626	344	626	344	-6

Net Working Capital: Working capital assets, comprising inventories plus total current receivables less trade receivables from deferred payment arrangements less current lease receivables, less working capital liabilities, comprising total current liabilities less current lease liabilities less bank overdraft. Management considers it to be a useful indicator of the Group's capital efficiency in its day-to-day operational activities.

Reconciliation

Q2'21	Q2'20	H1'21	H1'20	FY'20
1 037	821	1 037	821	880
937	777	937	777	900
-131	-153	-131	-153	-152
-12	-9	-12	-9	-9
-1 576	-1 521	-1 576	-1 521	-1 586
81	84	81	84	82
243	359	243	359	48
579	358	579	358	163

Operating Cost Percentage: Total operating expenses less cost of goods sold as a percentage of total operating revenue. The Group has presented this item because Management considers it to be a useful measure of the Group's efficiency in operating activities. Reconciliation

	Q2'21	Q2'20	H1'21	H1'20	FY'20
Total Operating revenue	2 409	2 061	5 036	4 065	9 866
Total operating exp.	2 325	1 998	4 861	3 970	9 589
- Cost of goods sold	-2 078	-1 765	-4 342	-3 496	-8 547
= Operating costs	247	232	519	474	1 042
Operating Costs %	10,2 %	11,3 %	10,3 %	11,7 %	10,6 %

Operating Free Cash Flow: EBITDA excl. impact of IFRS16 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 Management considers it to be a useful measure of the Group's operating activities' cash generation.

Reconciliation

	Q2'21	Q2'20	H1'21	H1'20	FY'20
EBITDA exl IFRS 16	98	78	203	126	339
- Investments	-15	-9	-24	-17	-39
+/- Change in Net Working Capital	-114	-96	-416	-124	-71
+/- Change in deffered payment	1	11	21	10	11
= Operating Free Cash Flow	-29	-16	-215	-6	382

Contact Contact person

Krister Pedersen Chief Financial Officer

Mobile: +47 952 45 037 E-mail: krister.pedersen@komplett.com

Visiting address Østre Kullerød 4 3241 Sandefjord, Norway

Mail address P.O. Box 2094 3202 Sandefjord, Norway Web www.komplettgroup.com/investor-relations/

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