Komplett ASA

Investor Presentation • Feb 13, 2025

Fourth quarter 2024

Jaan Ivar Semlitsch, CEO Thomas Røkke, CFO

13 February 2025

Disclaimer

This presentationhas been prepared by Kompany') solely for information purposes. The presentation does not onstitute 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 objectives for future operations, including our plans for future costs savings and se deemed to be forward-looking statements. Words such as "believe," expect", "anticipate","may," "assume," "plan," "intend," "isk" and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on crumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place under reliance on these forward-looking say forwardlooking 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.

04-24 Highlights Strong black-week and peak execution

Solid peak season in key markets and categories

• Improved demand in the core markets of Norway and Sweden over the quarter
  • o Driven by high peak season activity, especially during the black week period of November/December

ം Positive impact from new products and updates reducing headwinds in core categories

o Still affected by life-cycle and transition dynamics ahead of upcoming launches in computing and gaming segment

· Competition remains intense

• o The competitive environment is likely to remain strong
• o Market outlook supported by continued improved economic situation for consumers being anticipated
  • o Additional impact from product innovations and launches
  • o Too early to determine a clear shift in consumer demand

04-24 Key financials Financial performance reflecting a more supportive market

• o Improved market conditions and solid execution, especially during the peak season, resulted in a 3.1 per cent revenue growth
• o Stable gross margin performance and improvement to preceding quarters despite intense competition
• Cost management remains a priority, with operating costs +4.3 per cent (excl. depr.), mainly driven by increased marketing investments
• o EBIT adj. of NOK 77 million, on the back of improved gross profit, and offset by increased operating cost and higher depreciation
• o Inventory level well-controlled and reduced Yo Y, despite a later black week high-season sale
• o Continued solid liquidity position supported by improved payment terms and temporary phasing effects from a late black week
• Good headroom on financial covenants in the quarter new covenants account for normalised liquidity in Q1

04-24 Key initiatives Continued progress on strategic agenda presented at the capital markets day

net mnet

• o Two new store openings in 04 in Bergen and Södertälje
  • o Positive momentum for NetOnNet in Norway
  • o Trondheim to open in March 2025
• o Brand value proposition strengthened and good traction from commercial initiatives
• Commercial IT upgrade to be launched in Q1 with improved customer journey

• Extended product and supplier range online and in physical stores
• o Continued store upgrade process with another three shops in 04
• o Increased impact from cost measures and new initiatives introduced for 2025
• o Successful launch of the IFS ERP solution and upgrade of commercial backend on 1 February

• o Strong momentum from expanded supplier range and product offering
• o Good recruitment to the B2B loyalty programme
• o Cost programme launched after year-end involving workforce reductions
• o Morten Johnsen appointed new managing director at Komplett Services 15 January

Utilising our group-wide platform for sharing functions and capabilities

• o Successful execution of black week and peak season
• o Continued improved credit and payment conditions across the group
• o Supplier network expanded to provide a wider range of products and services in adjacent categories
• o Cost and efficiency measures accelerated including preparations for consolidated logistics in Sweden and workforce reductions

KOMPLETT GRO

· Financial performance

6

Thomas Røkke, CFO

Key financials Increased sales driven by peak season

3.1 per cent revenue increase O

• Improved market dynamics from solid black week and peak execution o
• o Receding headwinds in gaming and computing from new product launches

· Gross margin relatively steady (-0.1 pp)

• o Steady despite high campaign activity and intense price competition
• o Impacted by required price investments to maintain market positions, largely offset by positive product mix effects and commercial initiatives

o Cost managed effectively despite higher marketing investments

• o expansion activities, partly offset by cost reduction measures
• o infrastructures

EBIT adj. of NOK 77 million O

o depreciation charges, resulting in an EBIT adj. margin of 1.6 per cent

B2C Receding headwinds in core categories

· Revenue increase of 4.7 per cent YoY (+4.5 per cent LFL)

• o Increase in Norway of +17.0 per cent, including effects from new store openings in 2024, +0.6 per cent in Sweden and a decline in Denmark of -22.4 per cent (LFL, YoY)
• o Successful black week execution, receding headwinds in core categories supported by new product launches

· Gross margin relatively stable (-0.2 pp)

• o High campaign activity and intense competition requiring continued actions to meet competition
• o Positive mix effects and impact from commercial efforts

EBIT margin ended at 2.4 per cent O

• o Increased marketing investments during the peak season
• o infrastructures

net minet

B2B High peak season activity

· Revenue increase of 6.9 per cent (+6.8 per cent LFL)

• o +6.9 per cent in Norway, +6.5 per cent in Sweden (LFL, Yo Y)
• o customer base
• o Continued market uncertainty, and cautious spending patterns among smaller businesses

o Gross margin impacted by high campaign activity (-0.9 pp)

o The margin performance was negatively impacted by high campaign activity in the period, coupled by product mix effects

ം

Rise in operating expenses from inflation-driven increases in o personnel costs and higher depreciation charges

Note: All figures are presented as reported and in NOK million unless otherwise stated. LFL(Like for like): In constant currency.

Distribution Stable margins in a soft demand environment

ം

• o Sweden (YoY, LFL)
• o Weak order intake due to cautious spending patterns among SMEs, leading to softer demand among resellers
• o Longer term outlook supported by new technology and an ageing installed base

· Stable gross margin of 5.5 per cent, reflecting:

o by negative product and customer mix effects

ം EBIT decline of NOK 5 million driven by:

Slightly lower gross profit, increased personnel costs and o some YoY phasing effects

Gitegra

Cash flow & working capital Net working capital significantly reduced

Cash flow	04-24	04-25	FY-24	FY-25
Net cash flow from operating activities	660	251	1078	866
Net cash used in investing activities	-60	-84	-163	-208
Net cash used in financing activities	-130	-105	-419	-578
Net change in cash and cash equivalents	470	62	496	81

Net working capital	04-24	04-25
Inventory	2 048	2 194
Trade receivables - regular	153	245
Trade payables	- 2 073	-1 563
Other assets and liabilities	-277	-623
Net working capital	-149	253

• o NOK 391 million increase in trade payables, an inventory reduction of NOK 60 million and a NOK 40 million reduction in trade receivables
• o related to property, plant and equipment for new stores and improvements of the IT infrastructure
• o lease payments and loan interest, as well as Swedish tax repayments of NOK 41 million
• o Inventory levels decreased by NOK 146 million, driven by inventory management and solid year-end sales
• o management, improved supplier payment terms, while temporarily affected by late black week phasing
  • o Levels are expected to normalise along with usual seasonal patterns in 01-25

Financial position Continued solid liquidity and good headroom to covenant in the quarter

• Continued strong liquidity reserve of NOK 1.7bn
  • Structurally improved due to better payment terms 0
  • Temporarily elevated due to late phasing of black week O and fewer payment days
  • Will adjust in 01 with seasonality and phasing of sales O

ം

• Positive impact from a high cash balance O
• YoY changes also include NOK 263 million reclassified to O long-term liabilities due to the extended repayment plan for the Swedish tax deferral scheme

o

• o Temporarily low, expected to seasonally adjust into Q1
• Seasonal adjustments and market uncertainty catered O for in revised covenant trajectory for 01 and 02

ം

Compared to 37.2 per cent at the end of 04-23

KOMPETT®GROUP

Summary and outlook

Jaan Ivar Semlitsch, CEO

Key takeaways A more positive end to a challenging year

• o Receding headwinds in computing and gaming and solid execution of black week campaigns
• o Commercial initiatives and positive mix effects resulted in a stable margin development, despite strong competition and high campaign activity
• o Costs increased due to higher marketing investments and expansion activities, while cost reduction measures were accelerated
• Solid liquidity position as a result of improved payment terms and temporary effects from late black week
• o Good headroom towards financial covenants, with revised trajectory catering for seasonal effects and market uncertainties into 2025

Outlook Early market signs point to improved dynamics ahead

• Key indicators on the balance point towards increasing demand, but market conditions and consumer behaviour remain unpredictable
• o driver into 2025
• o Competition remains intense, and the group's brands will continue to adapt its pricing strategies to the trading environment
• o intended cost degression, with majority of impact expected from H2 2025
• Committed to maintaining an industry-leading cost position, strong brand recognition, and to leverage the group's efficient and scalable platform

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 a useful measure to show the management's view on the overall picture of profit generation before operating expenses 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 a useful 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.

Reconcillation

Amounts in NOK million	04 2024	04 2023	FY 2024	FY 2023
Total operating revenue	4 883	4734	15 301	15 861
- Cost of goods sold	(4 202)	(4 069)	(13 211)	(13 650)
= Gross profit	680	ees	2090	2 211
Gross margin	15.9 %	14-0 %	13.7 %	13.9 %

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 a useful 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.

Reconcillation

Amounts in NOK million	04 2024	04 2023	FY 2024	FY 2023
Total operating revenue	4 883	4734	15 301	15 861
Total operating expenses	4814	5638	15 368	16746
= Cost of goods sold	(4 202)	(4 069)	(13 211)	(13 650)
= One-off cost	(8)	(12)	(20)	(41)
- Impairment	-	(983)		(883)
= Total operating expenses (ad).)	604	574	2157	2073
Operating cost percentage	12.4 %	12.1%	14.0 %	13.1 %

EBITDA excl. impact of IFRS 16: Derived from financial statements as the sum of operating result (EBIT) plus the sum of depreciation, amortisation and impairments 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 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.

KOMPLETT®GROUP

Reconciliation

Amounts in NOK million	04 2024	04 2023	FY 2024	FY 2023
EBIT	69	(804)	(67)	(885)
- EBIT impact of IFRS 16	(3)	(4)	(16)	(16)
+ Dep B2C, B2B, Dist. Other	45	1012	180	1120
= EBITDA excl IFRS 16	111	103	97	218

EBIT adjusted: Derived from financial statements as operating result (EBIT) excluding one-off costs. 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 before one-off items.

Reconcillation

Amounts in NOK million	04 2024	04 2023	FY 2024	FY 2023
Total operating revenue	4 883	4734	15 301	15 861
EBIT	69	(904)	(67)	(885)
+ One=off cost	8	12	20	41
+ Impairment	-	983	-	983
= EBIT adjusted	77	91	(47)	139
EBIT marqin adjusted	1.6 %	1.9 %	(0.3%)	0.9 %

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 percentage 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 operating revenue.

Reconcillation

Amounts in NOK million	04 2024	04 2023	FY 2024	FY 2023
Total operating revenue	4883	4734	15 301	15 861
EBIT	69	(904)	(67)	(886)
EBIT margin	1.4 %	(19.1%)	(0.4%)	(5.6%)

Net working capital : Comprising inventories, trade receivables, trade payables and other current assets and liabilities. The management considers it to be a useful indicator of the oroup's capital efficiency inits day to - day operational activities. Part of the deferred Swe disht axliability is classified as other current liabilities in accordance with local accounting principles, while the part which has maturity of more than 12 months is classified as other non-current liabilities. At the end of the fourth quarter. NOK 150 million is shown as part of other current liabilities, while NOK 263 million is included in non-current liabilities.

Reconciliation

Amounts in NOK million	04 2024	04 2023	EY 2024	FY 2023
In vent or y	2 048	2 194	2 048	2194
+ Trade receivables - regular	163	245	163	245
- Trade payables	(2 07 3)	(1563)	(2 073)	(1563)
+/- Other assets and liabilities	(277)	(623)	(277)	(623)
= Net working capital	(149)	253	(149)	253

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 a useful indicator of the group's indebtedness, financial flexibility and capital structure. As mentioned above, interest-bearing debt only includes the deferred Swedish tax liability of NOK 263 million with maturity above 12 months. 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

.

mounts in NOK million	04 2024	04 2023	FY 2024	FY 2023
Long-term loans	800	800	800	800
Other non-current liabilities	283	=	263
Short-term loans		-
Cash/cashequivalents	(726)	(230)	(726)	(230)
Net interest-bearing debt	337	570	337	570
IFRS 16 liabilities	618	608	618	608
Net int. bear. debt incl. IFRS 16	854	1178	854	1178

Operating free cash flow: EBIT DA excl. impact of IFRS 16 less investment in property, plant and equipment, less change in net working capital less change in trader eceivable 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. Operating free cash flow is affected by the aforementioned reclassification of the Swedish deferred tax payment to other noncurrent liabilities.

Reconciliation

Amounts in NOK million	04	04	FY	FY
	2024	2023	2024	2023
EBITDA excl. IFRS 16 - Investments +/- Change in net working capit al +/- Reclassified to other non-current liabilities	111 (60) 495 1	103 (84) 31	97 (168) 401 304	218 (212) 392
+/- Change in deferred payment	B	17	52	12
= Operating free cash flow	552	67	686	410