Komplett ASA — Investor Presentation 2021

Jul 22, 2021

Second Quarter Results 2021

Continued strong profitable growth Lars Olav Olaussen, CEO Krister Pedersen, CFO

Highlights for the quarter: Strong profitable growth sustained

• Listed on Oslo Stock Exchange
• Continued strong growth momentum (+17%)
• ் Expanding gross margin for B2B (+0.5 pp) and B2C (+0.8 pp)
• o Strong opex improvement of 1.4 pp.
• 49% growth for EBIT adj. O
• Komplett FLEX successfully launched
• Entering the rapidly growing IT service segment

Solid top line progress driven by B2B and Distribution

• 17% revenue growth for the group
• Strong comparable figures from 2020 .
• Sustained growth in B2C (+3%) .
• Strongest growth for B2B (+ 27%) and Distribution (+ 50%)

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Gross margin by segment	Q2-20	Q2-21
B2C	15.8%	16.6%
B2B	17.7%	18.2%
Distribution	7.7%	6.1%

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B2C

Sustained growth and a giant step in operating margin

• · 3.4% revenue growth on tough comparisons
• · Sustainable online migration
• · Successful campaigns especially in the component & gaming category
• Expanding gross margin .

• A strong 27% revenue growth o
• Increased sales to all customer segments, both in Norway (+ 17%) and Sweden (+ 32%)
• Expanding gross margin o
• · Attracting new customers, increasing frequency and average basket size
• · Growth for Komplett-branded computers and other private label products
• EBIT margin of 10.4% (+ 1.5 pp.) .

Distribution

Significant growth, driven by new distribution agreements

• A strong 50% revenue growth o
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• · Positive impact from economies of scale and increased efficiency

New innovation: Komplett FLEX

Creating long-term customer relationships and sustainability

sustainability and a circular economy

Komplett FLEX - soft launch in Norway and Sweden in Q2

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The Komplett Group comprises brands with long heritage and high awareness among consumers and corporate customers. Komplett B2B has a unique starting point as the leading IT reseller for the small and medium-sized enterprises segment with around 20 per cent market share in Norway and a growing position in Sweden. With 30.000 active customers in Norway and 10.000 in Sweden the Group's B2B segment is uniquely positioned to enter the service market at scale. The two companies complement each other well and this transaction will enable Ironstone to continue their growth journey and scale up their operations.

"We see a growing demand from our customers to include basic IT set-up, cloud-based applications and IT security to our hardware offering. The acquisition of Ironstone represents a strategically attractive add-on for Komplett to enter the rapidly growing IT service segment. By coupling Ironstone's leading cloud technology and IT service offering with Komplett's wide-ranging customer base, we will strengthen our market position and increase customer affiliation. We believe the strong market position, brand and reach of Komplett B2B combined with the future proof business model of Ironstone has significant potential," says Komplett CEO Lars Olav Olaussen.

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. Ironstone leverages the Microsoft Cloud technology platform to provide IT services to both large corporations and small and medium-sized enterprises. The core offering comprises cutting edge innovative managed services, built on top of Microsoft technologies such as Microsoft Azure, Microsoft 365 and security, as well as consulting and migration. Its experienced team of ~20 employees generated revenues of NOK ~68 million in 2020 and a positive EBITDA contribution. Since its foundation in 2016, they have grown its customer base to count ~100 and receive excellent customer satisfaction scores. •

"This is a milestone agreement for Ironstone. Getting Komplett onboard provides us with a strong foundation for realizing the full potential of Ironstone's growth journey. With the support from Komplett we will continue to invest to accelerate the development of current Ironstone core offering and to develop new disruptive IT services for corporate customers", says Ironstone CEO Ellen Marie Nyhus.

The proceeds from the capital injection will be used to accelerate Ironstone's existing business model and the development of a cloud-based IT service offering for corporate customers. Ironstone is managed by Ellen Marie Nyhus, who will continue to lead the company following the transaction.

Key priorities going forward

• · Continue investing in a strong customer offering
• Sustain efficient operations based on existing business model
• Integration of new services
• Initiating supply chain program

| Financial performance

Krister Pedersen, CFO

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	Q2 2021	Q2 2020	YTD 2021	YTD 2020
Operating revenue	2 409	2 061	5 036	4 065
EBIT (adj.)	94	63	186	96
One -off cost	- 9	-	-11	-
EBIT	85	63	175	96
Net financials	- 6	- 4	-10	-10
Profit before tax	78	59	165	85
Tax expense	-15	-11	- 6	-15
PROFIT FOR THE PERIOD	64	47	158	70

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Cash Flow	Q2 2021	Q2 2020	YTD 2021	YTD 2020
Net cash from operating activities	15	1	-140	42
Net cash used in investing activities	-14	- 9	-23	-17
Net cash (used in)/from financing activities	- 2	10	127	-61
Net increase in cash and cash equivalents	- 1	2	-36	-35
Cash and cash equivalents at beginning of period	19	13	54	50
Cash and cash equivalents at end of year	18	15	18	15

Change in net working capital	Q2 2021	Q2 2020	YTD 2021	YTD 2020
Change in inventory	27	185	157	31
Changes in trade receivables - regular	98	-11	59	7
Changes in payables	-110	-84	101	117
Changes in other assets an liabilities	98	7	98	-30
Change in net working capital	114	96	416	124

Strengthened financials

• • New RCF facility of NOK 500 million where of NOK 400 million utilized due to dividend pay-out
• Strengthened liquidity despite higher interest bearing dept
• · Strengthened leverage ratio from 1.8x to 1.5x NIBD/EBITDA (ex IFRS16)

| Financial targets - growth and profitability

Group	Revenue	▪ Annual revenue growth in the level of 10% 2025 targeted group revenue NOK >15bn
long-term targets	Margins	Segment EBIT-margin improvement year-on-year across all segments ■ 2025 targeted gross-margin at ~15% and EBIT-margin at ~5%
Business segment long-term targets	B2C	▪ Annual revenue growth in the level of 10-12%
	B2B	▪ Annual revenue growth in the level of 8-10%
	Distribution	Annual revenue growth in the level of 5% Significantly higher growth for 2021 due to full year effect of new contracts in place

Financial targets - cash flow and dividends

Capital expenditure	Annual operational capex in the level of NOK 50 million Additional investments in the level of NOK 400 million for expanding supply chain capacity and upgrading IT systems, planned for 2022-23
Tax	■ Effective tax rate in the level of statutory rate in Norway (currently 22%)
Gearing	■ Capital structure to provide financial flexibility and support growth targets and dividend policy
Dividend	Iargeting stable growing dividends year-on-year ▪ Targeting a pay-out ratio of 60-80% of net profit adj. for any non-recurring and special items

| Summary and outlook

Lars Olav Olaussen, CEO

Key takeaways

• Strong profitable growth o
• · E-commerce established on a new and higher level than prior to the pandemic
• Gross margin improvements in B2B and B2C
• · Cost leadership position strengthened; opex down 1.4 pp
• Komplett FLEX successfully launched a new and easy way to get and re-use the latest tech products
• · Strengthening the offering in the growing service segment
• On track to meet long-term targets

KOMPLETT GROUP