AS

Quarterly report Q1 2021

elektroimportoren

QuarterlyreportQ12021 #elektroimportoren

To our shareholders

2021 started in many ways as 2020 ended. We experienced good growth throughout January, which continued in February and the first half of March. During March we had to close down sales to B2C in more than 50 % of our stores. We had a negative impact from the closedown but still managed to uphold a great part of sales to B2C through our omnichannel offer. In total our revenue growth for the quarter was 34.7% with like for like growth of 28.1%.

Sales to B2B have throughout the first quarter been great, with growth numbers above our expectations. This combined with the partial closedown of B2C has led to an increase in B2B share of business. We have still managed to grow our B2C sales in Q1.

We have had a good start of 2021. Our teams across the stores, central warehouse and at the home offices have continued to make their outmost to make our customers happy and by doing so securing a great performance and a solid result.

Yours sincerely Andreas Niss, CEO Elektroimportøren

Summary of key financials

Revenue of 345.7 MNOK (256.7 MNOK) up 34.7%.
Online share of total sales (excluding pick up in store) 14.8% (13.2%).
Strong sales growth in the B2B segment and share of sales have increased compared to last year to 47.9% (44.4%). Sales to B2C 52.1% (55.6%).
Total like for like sales growth 28.1% driven by 51.8% online and 25.2% physical stores.
Gross margin for Q1 was 37.3%, down from 38.8% (Q1 2020). Key drivers for reduced margin percentage year on year are strong growth in sales to B2B customers, negative effect on B2C sales in stores that are closed for this customer group (because of Covid 19 restrictions), and strong sales growth on EV chargers (significantly lower margin compared to other product categories).
Increase in operational efficiency OPEX to sales ratio 27.9% (32.6%).
Adjusted EBITDA of 32.3 MNOK (15.7 MNOK). Adjusted EBITDA margin percentage is 9.4% (6.1%).

Summary of Q1

Even though we had to close down 13 of our 23 stores for B2C sales in March we managed to grow revenues in all product categories, sales channels and customer segments.
Throughout the quarter all stores have been open for sales to B2B.
Electrical vehicle chargers continue to be the fastest growing category, but we see double digit growth across all product categories.
Sales to B2C had a great start of the quarter but as we had to close down sales , we saw share of business to B2C decreasing.
Sales to B2B have had a great start of the year and we continue to gain market shares in the professional space.
Larger share of business to B2B and an increase of the online share of business together with extraordinary growth in EV chargers has led to a decrease in gross margin percentage compared to last year.

for the last 12 months. • Prices on raw materials such as cobber and plastic are increasing, and we plan for price Revenue, MNOK

Summary of Q1

adjustments for the coming months to level these increases.

• Even though we had to close down 13 of our 23 stores for B2C sales in March we managed to grow revenues in all product categories, sales channels and customer segments.

• Electrical vehicle chargers continue to be the fastest growing category, but we see double

• Even though we had to close down 13 of our 23 stores for B2C sales in March we managed to grow revenues in all product categories, sales channels and customer segments.

• Sales to B2C had a great start of the quarter but as we had to close down sales , we saw

• Electrical vehicle chargers continue to be the fastest growing category, but we see double

• Sales to B2B have had a great start of the year and we continue to gain market shares in the

• Larger share of business to B2B and an increase of the online share of business together with extraordinary growth in EV chargers has led to a decrease in gross margin percentage

• Sales to B2B have had a great start of the year and we continue to gain market shares in the

• Gross Margin to B2C has increased during the quarter and we see no general price pressure

• Larger share of business to B2B and an increase of the online share of business together with extraordinary growth in EV chargers has led to a decrease in gross margin percentage

• During the quarter we have built up our stock to secure availability of products and enable continued growth. There have been some minor availability challenges but with good planning we have been able to mitigate these challenges and availability has not been better

• Gross Margin to B2C has increased during the quarter and we see no general price pressure

• Prices on raw materials such as cobber and plastic are increasing, and we plan for price

• Throughout the quarter all stores have been open for sales to B2B.

digit growth across all product categories.

share of business to B2C decreasing.

professional space.

compared to last year.

professional space.

for the last 12 months.

from competitors.

Adjusted EBITDA

Like for Like growth %

Gross Margin to B2C has increased during the quarter and we see no general price pressure from competitors.
During the quarter we have built up our stock to secure availability of products and enable continued growth. There have been some minor availability challenges but with good planning

we have been able to mitigate these challenges and availability has not been better for the last 12 months.

• Prices on raw materials such as copper and plastic are increasing, and we plan for price adjustments for the coming months to mitigate these increases.

Financials

Alternative Performance Measures Alternative Performance Measures

(Amounts in NOK million)	Q1 2021	Q1 2020	2020

Revenue	345,7	256,7	1 314,9
COGS	-216,9	-157,2	-792,5
Gross Profit	128,8	99,5	522,5
Gross margin (%)	37,3 %	38,8 %	39,7 %
Operating expenses in sales channels	-63,0	-55,5	-225,9
Other operating expenses	-33,5	-28,3	-134,9
OPEX	-96,5	-83,7	-360,8
OPEX to sales margin	-27,9 %	-32,6 %	-27,4 %

Adjusted EBITDA	32,3	15,7	161,7
Adjusted EBITDA margin (%)	9,4 %	6,1 %	12,3 %
Adjustments	-0,8	0,0	-7,0
EBITDA reported	31,6	15,7	154,7
EBITDA reported margin (%)	9,1 %	6,1 %	11,8 %
Depreciation	-6,2	-5,4	-23,3
Adjusted EBIT	26,2	10,4	138,4
Adjusted EBIT margin (%)	7,6 %	4,0 %	10,5 %
Adjustments	-0,8	0,0	-7,0
Amortisation intangible assets	-2,5	-2,5	-9,8
EBIT reported	22,9	7,9	121,6
EBIT reported margin (%)	6,6 %	3,1 %	9,2 %
Net financial expenses	-2,4	-3,8	-14,4
Profit before tax	20,6	4,1	107,2
Net Income	15,5	2,7	Side 7 nederst – bytte ut disse to grafene; 81,3
Liabilities to financial institutions	- 205,0	-205,0	-205,0
Leasing liabilities (Autostore)	- 20,0	-11,1	-20,6
Cash/Overdraft facility	59,4	-33,6	94,1
Net interest bearing debt	- 165,5	-249,7	-131,6

Financial review

Revenues

able to maintain sales to this customer group.

Revenue growth % Adjusted EBITDA margin (%) # of stores

Side 7 nederst – bytte ut disse to grafene;

For Q1 2021 we have effects on sales and results because of Covid 19. Some of our stores have been closed for B2C during the quarter. As we have implemented good delivery alternatives, we have been

Total revenue in Elektroimportøren for Q1 was 346 MNOK, increasing from 257 MNOK Q1 last year (34,6% growth). All growth is organically. Like for like growth in physical stores was 25,2%, while growth in Online sales channel was 51,8% (collect in store is reported as part of sales in physical

stores). We had a positive development in both B2B and B2C segments.

Financial review

For Q1 2021 we have effects on sales and results because of Covid 19. Some of our stores have been closed for B2C during the quarter. As we have implemented good delivery alternatives, we have been able to maintain sales to this customer group.

Revenues

Total revenue in Elektroimportøren for Q1 was 346 MNOK, increasing from 257 MNOK Q1 last year (34.6% growth). All growth is organically. Like for like growth in physical stores was 25.2%, while growth in Online sales channel was 51.8% (collect in store is reported as part of sales in physical stores). We had a positive development in both B2B and B2C segments.

Gross margin

Gross margin Gross margin for Q1 was 37.3%, down from 38.8% for Q1 2020. Key drivers for reduced margin percentage year on year are change in business mix tilted towards B2B (with lower margins) due to covid-19 restrictions, and strong sales growth in low-margin product category (EV chargers). Gross margin Gross margin for Q1 was 37,3%, down from 38,8% for Q1 2020. Key drivers for reduced margin percentage year on year are strong growth in sales to B2B, negative effect on B2C sales in stores that are closed for this customer group because of Covid 19 restrictions, and strong sales growth on EV

Operating expenses in sales channels

department and the B2B organization.

Other operating expenses

to 18,2%.

chargers (significantly lower margin compared to other product categories).

Operating expenses in sales channels includes employee benefit expenses, rent for physical stores,

bonuses to store employees and other store costs. They also include costs for online store

Operating expenses in sales channels includes employee benefit expenses, rent for physical stores,

Compared to Q1 last year we have two more stores (Tønsberg and Klepp). Costs have increased from 55,5 MNOK to 63,0 MNOK. Costs as percentage of sales have a significant improvement from 21,6%

bonuses to store employees and other store costs. They also include costs for online store

Other operating expenses were 33,5 MNOK an increase from 28,3 MNOK.

Operating expenses in sales channels

Operating expenses in sales channels includes employee benefit expenses, rent for physical stores, bonuses to store employees and other store costs. They also include costs for online store department and the B2B organization.

Compared to Q1 last year we have two more stores (Tønsberg and Klepp). Costs have increased from 55.5 MNOK to 63.0 MNOK. Costs as percentage of sales have a significant improvement from 21.6% to 18.2%.

Other operating expenses

Other operating expenses were 33.5 MNOK an increase from 28.3 MNOK.

Other operating expenses include marketing activities, distribution costs, head office functions, non sales channel costs and bonuses to management and employees at head office and central warehouse. Other operating expenses include marketing activities, distribution costs, head office functions, non sales channel costs and bonuses to management and employees at head office and central

We have an improvement in efficiency measured as percentage of total revenue compared to last year, going from 11% to 9.7%. We have an improvement in efficiency measured as percentage of total revenue compared to last year, going from 11% to 9,7%.

Adjusted EBITDA Adjusted EBITDA

warehouse.

Adjusted EBITDA for Q1 was 32.3 MNOK increasing from 15.7 MNOK in 2020. Main drivers for this positive development are significant increase in revenue, good cost control in stores and other functions, offsetting a reduction in gross margin percentage. Adjusted EBITDA for Q1 was 32,3 MNOK increasing from 15,7 MNOK in 2020. Main drivers for this positive development are significant increase in revenue, good cost control in stores and other functions, offsetting a reduction in gross margin percentage.

EBITDA reported EBITDA reported

Reported EBITDA was 31.6 MNOK, up from 15.7 MNOK last year. Reported EBITDA was 31,6 MNOK, up from 15,7 MNOK last year.

term loan of 205 MNOK, and a revolving credit facility of 120 MNOK.

Adjustments Adjustments

Tax expenses

classified as payable taxes.

Liquidity and borrowings

We have made some adjustments for non recurring elements, as we believe that Adjusted EBITDA gives a more accurate picture of the underlying development of Elektroimportøren. We have made some adjustments for non recurring elements, as we believe that Adjusted EBITDA gives a more accurate picture of the underlying development of Elektroimportøren.

Overview of adjustments
MNOK	Q1 2021	Q1 2020
Sweden analysis	-0,6	0,0
Costs related to previous financial year	-0,2	0,0
Total adjustments	-0,8	0,0

We have not calculated split between deferred tax and payable tax, so net tax expense has been

Tax expenses

We have not calculated split between deferred tax and payable tax, so net tax expense has been classified as payable taxes.

Liquidity and borrowings

Elektroimportøren has during December 2020 renewed loan agreement with DNB including a long-term loan of 205 MNOK, and a revolving credit facility of 120 MNOK.

Consolidated statement of profit and loss Consolidated statement of profit and loss

Amounts in nok 1000	Q1 2021	Q1 2020	2020
	Unaudited	Unaudited	Audited
Revenue	345 693	256 682	1 315 894

Cost of goods sold	-216 856	-157 217	-798 389
Employee benefits expenses	-54 699	-48 207	-219 294
Depreciation and amortisation expenses	-8 613	-7 804	-33 118
Other operating expenses	-42 545	-35 551	-143 491
Total operating expenses	-322 712	-248 779	-1 194 292

Operating profit	22 980	7 903	121 602

Net financial income (+)/expenses (-)	-2 371	-3 789	-14 446

Profit before tax	20 609	4 114	107 156

Income tax expense	-5 073	-1 446	-25 885

Net profit (loss) for the period	15 536	2 668	81 271

Earning per share (EPS)	0,75	0,13	3,92

Consolidated statement of financial position Consolidated statement of financial position Consolidated statement of financial position

Unaudited Unaudited Audited

Goodwill		121 062	130 321	122 606
Amounts in nok 1000 Other intangible assets	Note	Q1 2021 6 447	Q1 2020 6 996	2020 7 356
Total intangible assets		Unaudited 127 509	Unaudited 137 317	Audited 129 962
Goodwill		121 062	130 321	122 606
Other intangible assets Fixtures and fittings, office machinery and equipment		6 447 140 877	6 996 129 677	7 356 142 778
Total intangible assets		127 509	137 317	129 962
Inventory		232 566	198 737	208 160
Fixtures and fittings, office machinery and equipment Trade receivables		140 877 63 551	129 677 46 934	142 778 54 386
Other receivables		13 468	15 259	28 251
Inventory Cash and bank deposits		232 566 59 441	198 737 850	208 160 94 080
Trade receivables Total current assets		63 551 369 026	46 934 261 780	54 386 384 877
Other receivables		13 468	15 259	28 251
Cash and bank deposits Total assets		59 441 637 412	850 528 774	94 080 657 617
Total current assets		369 026	261 780	384 877

Total assets		637 412	528 774	657 617
Consolidated statement	of	financial	position

Amounts in nok 1000 Note Q1 2021 Q1 2020 2020

Consolidated statement of		financial	position
Amounts in nok 1000	Note	Q1 2021	Q1 2020	2020
		Unaudited	Unaudited	Audited
Share capital		13 011	13 011	13 011
Other Equity	Note	Q1 2021	Q1 2020	2020
Amounts in nok 1000		128 071	83 933	112 535
Total Equity		Unaudited 141 082	Unaudited 96 944	Audited 125 546
Share capital		13 011	13 011	13 011
Other Equity		128 071	83 933	112 535
Deferred tax		43	676	43
Total Equity		141 082	96 944	125 546
Lease liabilities		16 460	11 093	17 923
Other long term liabilities		0	30 000	0
Deferred tax		43	676	43
Liabilities to financial institutions		185 000	185 000	185 000
Lease liabilities		16 460	11 093	17 923
Total long term liabilities		201 503	226 769	202 966
Other long term liabilities		0	30 000	0
Liabilities to financial institutions		185 000	185 000	185 000
Liabilitites to financial institutions		23 803	55 521	22 702
Total long term liabilities		201 503	226 769	202 966
Trade payable		88 209	73 939	120 798
Tax payable		27 597	4 927	26 518
Liabilitites to financial institutions		23 803	55 521	22 702
Dividends payable		50 000	0	50 000
Trade payable		88 209	73 939	120 798
Public duties payable		58 587	37 287	50 559
Tax payable		27 597	4 927	26 518
Other short term liabilities		46 631	33 387	58 528
Dividends payable		50 000	0	50 000
Total short term liabilities		294 827	205 061	329 105
Public duties payable		58 587	37 287	50 559
Other short term liabilities		46 631	33 387	58 528
Total Equity and Liabilities		637 412	528 774	657 617
Total short term liabilities		294 827	205 061	329 105

Total Equity and Liabilities 637 412 528 774 657 617

Consolidated statement of cash flow Consolidated statement of cash flows

Amounts in nok 1000	Q1 2021 Unaudited	Q1 2020 Unaudited	2020 Audited
Cash flow from operations
Profit before income taxes	22 942	7 887	107 156
Taxes paid	-3 995	-4 509	-7 990
Depreciation and amortisation	8 613	7 805	33 118
Change in inventory	-25 615	5 756	-3 605
Change in trade debtors	-12 576	-9 506	-13 815
Change in trade creditors	-27 966	-13 803	29 849
Change in other provisions and receivables	11 193	19 597	10 906
Net cash flow from operations	-27 404	13 227	155 619
Cash flow from investments
Net capital expenditures	-4 229	-10 481	-41 570
Net cash flow from investments	-4 229	-10 481	-41 570
Cash flow from financing
New Loans	0		215 800
Repayment of loans and interest	-3 006	-2 790	-236 663
Net cash flow from financing	-3 006	-2 790	-20 863
Cash and cash equivalents at the beginning of the period	94 080	894	894
Net change in cash and cash equivalents	-34 639	-44	93 186
Cash and cash equivalents at the end of the period	59 441	850	94 080

Equity Equity Equity

Amounts in nok 1000 Paid in Other Total

Consolidated statement of changes in equity

January 1st. 2020 13 011 81 265 94 276 Profit for January-March 2020 0 2 668 2 668 Balance at 31st. March 2020 13 011 83 933 96 944

Balance at 1st. January 2021 13 011 112 535 125 546 Profit for January-March 2021 0 15 536 15 536

Balance at 31st. March 2021 13 011 128 071 141 082

Consolidated statement of changes in equity Net cash flow from financing -3 006 -2 790 -20 863 Cash and cash equivalents at the beginning of the period 94 080 894 894 Net change in cash and cash equivalents -34 639 -44 93 186 Cash and cash equivalents at the end of the period 59 441 850 94 080 Consolidated statement of changes in equity

Amounts in nok 1000 Note Q1 2021 Q1 2020 2020

Consolidated statement of cash flows

Profit before income taxes 22 942 7 887 107 156 Taxes paid -3 995 -4 509 -7 990 Depreciation and amortisation 8 613 7 805 33 118 Change in inventory -25 615 5 756 -3 605 Change in trade debtors -12 576 -9 506 -13 815 Change in trade creditors -27 966 -13 803 29 849 Change in other provisions and receivables 11 193 19 597 10 906 Net cash flow from operations -27 404 13 227 155 619

Net capital expenditures -4 229 -10 481 -41 570 Net cash flow from investments -4 229 -10 481 -41 570

New Loans 0 215 800 Repayment of loans and interest -3 006 -2 790 -236 663

Cash flow from operations

Cash flow from investments

Cash flow from financing

Unaudited Unaudited Audited

Amounts in nok 1000	Paid in	Other	Total
	Equity	Equity	Equity

January 1st. 2020	13 011	81 265	94 276
Profit for January-March 2020	0	2 668	2 668
Balance at 31st. March 2020	13 011	83 933	96 944

Balance at 1st. January 2021	13 011	112 535	125 546
Profit for January-March 2021	0	15 536	15 536
Provision for Dividend	0	0	0
Balance at 31st. March 2021	13 011	128 071	141 082

Events after the period and outlook

Our assumptions for the 2nd quarter have been to be on par with last year. We know that we are facing challenging comparable numbers and that we will need to be at our best to be able to grow sales and earnings.

We went into April with more than half of our stores closed for B2C. Despite of this we have managed to beat last year turnover in April. As we now start to open our stores for all customers, we are confident that the private customers will return to our stores. We do not expect growth to be at Q1 levels for the coming months. We are confident that we will continue to gain market shares in the B2B market, but we remain uncertain on how the B2C market will develop compared to last year.

In the 2nd quarter we will open our store number 24 in Jessheim north of Oslo, and we have initiated negotiations for two more locations with possible openings in 2021.

Throughout the year we will continue to focus on improving our omnichannel customer journey, strengthen our position within the B2B market and seek for possibilities to open new stores in attractive areas.

Oslo, May 4 2021 The board of Elektroimportøren AS

Amund Skarholdt

Robert Ingberg Iversen

Gaute Gillebo

Ronny Blomseth Kjersti Helen Krokeide Hobøl

Fredrik Toft Bysveen

Notes and Definitions

Notes

Note 1 Corporate information

Elektroimportøren AS and its subsidiaries (the Group) operating activities are related to the resale of electro materials, lighting, heating and ventilation, cables and wires as well as smart home products in Norway through physical stores and online business.

All amounts in the financial statements are presented in NOK 1000' unless otherwise stated.

Due to rounding's there may be smaller differences in the summation columns.

Note 2 Basis of preparation and accounting policies

These financial statements for the first quarter of 2021 have been prepared in accordance with NGAAP, consistent with those applied in the preparation of the annual financial statements for the year ended 31st. December 2020.

There have not been any changes in accounting principles over the last year.

The Group accounts for business combinations using the acquisition method when control is transferred to the group. The consideration transferred in the acquisition is measured at fair value, as are the net assets acquired. Any goodwill that arises will be amortised.

Note 3 Estimates, judgements and assumptions

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

In preparing these interim financial statements the significant judgements made by the management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31st. December 2020.

Note 4 Loans and borrowings

In December 2020 Elektroimportøren AS renewed the financing structure with DNB, increasing the Revolving credit facility. At 31st. March 2021 Elektroimportøren has the following borrowing facilities;

(Amounts in 1000 NOK)	Unlised	Total Facility
Term Ioan A	205 000	205 000
Revolving Credit Facility	–	120 000 Note 6 Earnings per share
	205 000	325 000

The facilities have a three year maturity, and term loan A have yearly installments with 20 MNOK

The facilities are secured by inventory, receivables and operating equipment in Elektroimportøren AS.

Definitions

organic revenue growth

net distribution costs to our online customers

Note 5 Related party transactions

The Groups related parties transactions includes key management, members of the board and majority shareholders. None of the Bord members have been granted loans or guarantees in the current year. None of the Group Board members are included in the Group's bonus or pension plans.

Note 6 Earnings per share Note 6 Earnings per share

Definitions

Like-for-like revenue are revenues from stores that were in operation from the start of last

organic revenue growth

Gross profit is defined as revenue minus the cost of goods sold (COGS). The gross profit represents sales revenue that the group retains after incurring the direct costs associated with the purchase and distribution of costs (including distribution costs to central warehouse and

Revenue growth represents the growth in revenue for the current reporting period compared to the comparative period the previous year. Revenue growth is an important key figure for Elektroimportøren AS, and the user of financial statements as it ilustrates the underlying

net distribution costs to our online customers

		Q1 2021	Q1 2020	FY 2020

Net profit

Earnings per share	Earnings per share	0,75	0,13	3,92

Like-for-like revenue are revenues from stores that were in operation from the start of last

fiscal year all through the end of the current reporting period

Definitions

Like-for-like revenue are revenues from stores that were in operation from the start of last fiscal year all through the end of the current reporting period.

Gross margin is defined as Gross profit divided by Revenue. The gross margin reflects the percentage margin of the sales revenue that the Group retains after incurring the direct costs associated with the purchase and the distribution of the goods. As such this is an important KPI for Elektroimportøren.

Operating expenses in sales channels includes employee benefit expenses, rent costs and other operating expenses in Physical stores, B2B organization and our Online operation.

OPEX to sales margin is the sum of Operating expenses in sales channels and Other operating expenses divided by Revenue. The OPEX to revenue margin measures operating cost efficiency as percentage of Revenue and is an important KPI for Elektroimportøren.

EBITDA is earnings before tax, interests, depreciation and write down of fixed assets and amortisation of intangible assets.

Adjusted EBITDA is defined as EBITDA less items defined as other income and expenses not considered as part of ordinary operations. EBITDA and adjusted EBITDA are important key figures for Elektroimportøren, and considered useful to the users of financial statements when evaluating operational profitability.

EBITDA margin is EBITDA divided by total Revenue. The adjusted EBITDA margin is Adjusted EBITDA divided by total Revenue. These performance measures are important key figures for Elektroimportøren, and are considered useful to the users of financial statements when evaluating operational efficiency.

EBIT (earnings before interest and tax) is operating profit.

EBIT margin is EBIT divided by Total revenue.

Net capital expenditure represent the cash flow from the investment spending in fixtures and fittings, machinery and other intangibles less sales proceeds for such assets.

Net income is profit (loss) for the period.

AS Quarterly report Q1 2021

elektroimportoren

QuarterlyreportQ12021 #elektroimportoren

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Elektroimportøren AS Interim / Quarterly Report 2021

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QuarterlyreportQ12021 #elektroimportoren

To our shareholders

Summary of key financials

Summary of Q1