Komplett ASA

Earnings Release • Feb 9, 2022

Q4-21: Increased profitability despite B2C headwind

Q4-21: Increased profitability despite B2C headwind

Sandefjord, 9 February 2022: In the fourth quarter of 2021, the Komplett Group

improved the adjusted EBIT margin to 3.6 per cent, up from 3.4 per cent one year

earlier. The B2B and the Distribution segments delivered record quarterly

revenues and operating results, while the B2C segment was impacted by a softer

market, component shortages and supply constraints in key categories which led

to a revenue decline in this segment of 12 per cent from Q4 2020. In a two-year

perspective, B2C revenues showed a 17 per cent increase.

Total revenue for the Group in the fourth quarter was NOK 3 292 million, a four

per cent reduction from the fourth quarter of 2020. On a two-year basis, the

Group's fourth quarter revenues grew by 35 per cent. Even with decline in total

revenue the operating result remained at NOK 118 million, the same as the fourth

quarter in 2020.

The board of directors are proposing a dividend per share of NOK 2.90.

For 2021 in total, the Group increased revenues to NOK 11 billion, corresponding

to a 12 per cent growth from the year before. On a two-year basis annual

revenues increased with 46 per cent. Both the B2B and the Distribution segments

passed significant milestones in yearly revenues, with B2B surpassing NOK 1.5

billion and Distribution surpassing NOK 3 billion.

"Overall, there is positive momentum in the ecommerce market, and, despite

headwind from supply chain constraints and components shortage, we saw a 12 per

cent revenue growth in 2021. This growth was primarily driven by strong progress

across the B2B and Distribution segments. In the B2C segment, revenues fell back

in the fourth quarter following a period of record-high demand. This segment,

specifically the gaming and components categories, has been most hit by the

aforementioned supply chain challenges," says CEO Lars Olav Olaussen.

"We continued to strengthen our cost leadership position throughout 2021. The

Group's highly scalable business model and increased business efficiency

resulted in operating costs of 9.7 per cent of revenues for 2021, corresponding

to an improvement of 0.9 percentage points from 2020," Lars Olav Olaussen adds.

This translated into a 41 per cent adjusted EBIT growth for the full year 2021,

corresponding to an adjusted EBIT margin increase of 0.7 percentage points.

"Looking ahead, we anticipate the online migration to continue, and we are well

positioned to continue to increase our share of the market. While the underlying

drivers of our business remain strong, we expect the ongoing supply chain

constraints to continue to impact market dynamics also in 2022, especially

within gaming and components. Our exposure is however balanced by the natural

hedge of our multi-channel business model.

Supported by our strong commercial execution and efficient, scalable business

model, we will continue to capitalise on our position as the leading Nordic

online-first retailer," Lars Olav Olaussen adds.

Please find enclosed the interim report for the fourth quarter and the

presentation material.

A presentation of the fourth quarter results will be held by CEO Lars Olav

Olaussen and CFO Krister Pedersen 9 February 2022 at 09:00 CET at Felix

Conference Centre, Aker Brygge, Oslo. In addition to the physical presentation

in Oslo, the event will be live streamed.

Please use the following link to register and view the webcast:

https://events.webcast.no/viewer-registration/nIYzmINK/register

Questions to the speakers will be addressed towards the end of the presentation.

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

has concluded.

For further inquiries, please contact:

Kristin Hovland, Head of Communication

+47 98 65 28 60

Kristin.Hovland@komplett.com

Per Christian Brander, Head of Investor Relations

+47 40 63 63 49

PerChristian.Brander@komplett.com

About Komplett ASA

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

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

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

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

customer commitment. Komplett Group operates an efficiency and scalable business

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