Komplett ASA

Investor Presentation • Oct 26, 2023

Third quarter 2023

Jaan Ivar Semlitsch, CEO

Thomas Røkke, CFO

26 October 2023

Disclaimer

This presentation has been prepared by Komplett ASA (the "Company") solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

This presentation includes forward-looking statements which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this report, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate,", "may," "assume," "plan," "intend," "will," "should," "estimate," "risk" and similar expressions or the negatives of these expressions are intended to identify forwardlooking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forward-looking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this notice.

03-23 highlights Komplett Group on track

Top-line growth and improved market shares in demanding market environment; improved profitability driven by margin uplift and good cost control	On track
Strong momentum for Komplett brand; 18 per cent revenue growth for B2C Norway and solid uplift in B2B	On track
Improved performance at our Swedish operations with additional cost program being developed	On track
Healthy stock situation for all categories with good and best-in-class availability (above 85%) across the Group	On track
Solid liquidity and improved covenant ratios with headroom versus bank requirements	On track
Sourcing improvements continuing with central set up with further potential identified	On track

Q3-23 highlights Good progress across key financials

KOMPLETT^°GROUP

• NOK 49 million increase in operating results (EBIT adj.) on stable sales, supported by gross margin progress (+1.7 pp) and good cost control
• Operating working capital level reduced by NOK 351 million YoY with healthy inventories supporting high service levels across all brands
• Positive cash flow from operating activities of NOK 186 million in the period supports an already strong liquidity position (up NOK 180m to NOK 1.1bn)
• Continued improvement in financial position with leverage ratio (NIBD/LTM EBITDA) down to 2.6x on lower debt and strong liquidity

5 key focus areas next 6 months

Deliver peak	Deliver operational excellence and profitability	Expand NetOnNet in Norway	Further organisational changes to improve performance and reduce costs	Refine strategic direction
o Strong Black Week and Black Friday plans $\circ$ Next level plans for the December and the Christmas season $\circ$ Focus on the right assortment with good availability with profit mindset o Utilise same day delivery offering to the maximum	o Pricing tool in place and actively used and managed daily o Improved store performance in NetOnNet and Webhallen, closure of five Webhallen stores, and opening of two NetOnNet stores o Automation of processes and further cost reductions o Improved customer journey online	$\circ$ Alnabru reopening 2 November with 50% increased store size $\circ$ New and very attractive location in Stavanger from 012024, true to the NetOnNet concept o Marketing concept also to be rolled out in Norway with new campaign rhythm $\circ$ Active use of the new pricing tool	$\circ$ Central commercial team in place 1 December and go live whole organisation 1 March $\circ$ Recruit new MD in NetOnNet and ensure hands-on approach as acting MD o Further development of cost program o Develop culture around profitability further	o Utilise the B2B potential further when market normalises and continue to take market share $\circ$ Develop Services offering further in combination with Ironstone o Develop the right MDA and SDA assortment range o Increase sale of phones with subscriptions from a strong base sale without subscriptions $\circ$ Continue to grow the strong private label position for all brands

Financial performance

Key financials

Strong EBIT uplift on stable revenues

Modest revenue growth of 2.4 per cent in a difficult market

• Less impact from currency translation effects (+1.1 per cent LFL) $\circ$
• Continued good progress in Norwegian operations across channels $\circ$
• Swedish market remains more unpredictable and challenging $\circ$
• No material change in market momentum during the period $\circ$

Gross profit uplift of 17.2 per cent supported by active measures $\circ$

• Margins benefitting from pricing strategies and initiatives $\circ$
• Synergy program progressing largely as planned despite headwinds $\circ$
• Healthier inventory positions and hence less price pressure $\circ$
• Q3 and Q4 normally associated with campaigns & mix effects $\circ$

Cost base managed to maintain industry-leading position

• Cost inflation partly offset by cost reduction measures $\circ$
• Continued brand investments across both Norway and Sweden $\circ$
• Cost programs complemented with new measures in Swedish units $\circ$
• Some strategic investments in central resources $\circ$

B2C

KOMPLETT^°GROUP

Strong EBIT improvement driven by gross margin progress and good cost control

Revenues up 2.6 % Yo Y supported by continued brand investments $\circ$

• Large geographic differences in development: Norway $\circ$ +10.8, Sweden -3.4 and Denmark +13.9 per cent YoY
• Continued difficult markets with high level of uncertainty $\circ$
• Stable or expanding market positions across brands $\circ$
• Selective brand investments with positive impact $\circ$
• Improved product availability and segments $\circ$
• Continued gross margin uplift of 2.6 pp driven by: $\circ$
• Sourcing initiatives and pricing strategies $\circ$
• Healthier inventory reducing price pressure $\circ$
• Significant EBIT improvement of NOK 59 million driven by: $\circ$
• Gross margin progress and good cost control $\circ$
• Solid improvement across all key brands $\circ$

B2B

KOMPLETT^°GROUP

Solid revenue growth and underlying cost improvement

Solid revenue growth of 9.8 per cent supported by customer mix $\circ$

• Norway + 11.0 per cent and Sweden -5.5 per cent $\circ$
• Difficult underlying market with regional differences $\circ$
• Increased sales to the educational and other sectors $\circ$
• Support from better product availability YoY $\circ$
• Underlying gross margin progress but negative mix effects $\circ$
• Better pricing and inventory supported gross margin $\circ$
• Customer and product mix affect negatively $\circ$

Good uplift in EBIT of NOK 4 million, through: $\circ$

• Improved gross margin and good cost control $\circ$
• EBIT margin up to 6.2 per cent $\circ$

Distribution

Gross margin maintained despite lower sales

Minor revenue decline of 1.7 per cent reflecting: $\circ$

• Regional differences also in this segment: Norway-1.6 per $\circ$ cent, Sweden-6.7 per cent
• Lower sales in certain categories and suppliers vs. LY $\circ$
• Some shift of phasing of orders and deliveries $\circ$
• No material shift in customer composition $\circ$

Minor gross margin uptick reflecting: $\circ$

• Improved sourcing terms $\circ$
• Healthier inventory and operational efficiencies $\circ$
• Benefits partly offset by mix effects $\circ$

EBIT down NOK 3m due to slightly higher opex share, driven by: $\circ$

Revenue decline combined with IT costs and inflation $\circ$

Profit and loss

Improved net profit compared to last year

	$03 - 23$	$03 - 22$	YTD- 23	YTD-22	FY-22
Operating revenue	3874	3784	11 127	9961	14 618
Depreciation and amortisation	$-82$	$-74$	$-249$	$-180$	$-256$
EBIT (adj.)	39	$-10$	48	17	87
One-off cost	$-13$	$-4$	$-29$	$-60$	$-80$
EBIT	26	$-14$	19	$-43$	6
Net financials	$-41$	$-29$	$-125$	$-63$	$-104$
Profit before tax	$-15$	-43	$-106$	$-106$	$-98$
Tax expense	$-6$	8	15	10	56
Profit from continuing operations	$-21$	$-35$	$-91$	$-97$	$-42$
Profit from discontinued operations	$\qquad \qquad -$	6	$\overline{\phantom{a}}$	6	10
Profit for the period	$-21$	$-29$	$-91$	$-91$	$-32$

• Depreciation and amortisation totalled NOK 82 million, $\circ$ with NOK 12 million linked to amortisation of acquired customer value. YoY increase mainly driven by higher depreciations on right-of-use assets (e.g., cost inflation)
• One-off costs of NOK 13 million related to organisational changes in certain central areas and positions as well as restructuring in the operations of the brands
• Net financials up by NOK 12 million mainly due to higher
  interest rates on existing debt and factoring costs,
  despite lower debt levels overall; some one-off effects $\circ$ from implementation of new cash management set-up
• Tax expenses of NOK 6 million, reflecting improved in-
  period results as well as adjustments from prior reporting periods and tax effects from permanent differences
• Loss for the period of NOK 21 million compared with a $\circ$ loss from continuing operations of NOK 35 million in Q3 2022

Cash flow & working capital

Net working capital optimisation maintained

Cash flow	$03 - 23$	$03 - 22$	YTD-23	YTD-22	$FY-22$
Net cash flow from operating activities	186	380	615	542	1 102
Net cash used in investing activities	-39	$-29$	$-124$	$-1624$	$-1701$
Net cash (used in)/from financing activities	$-321$	$-314$	-473	1 126	706
Net change in cash and cash equivalents	$-173$	36	18	44	108

Net working capital	$03 - 23$	$03 - 22$	$FY-22$
Inventory	2 108	2 101	1928
Trade receivables - regular	236	504	309
Trade payables	$-1407$	$-1317$	$-1412$
Other assets and liabilities	-653	$-241$	-181
Net working capital	284	1047	644

• Net operating cash flow in the period reflecting inventory $\circ$ build up ahead of peak season of NOK 212 million being compensated by an increase in trade payables of NOK 276 million
• Net cash flow used in investing activities during the $\circ$ period mainly related to property, plant and equipment, including IT and related infrastructure investments
• Net cash used in financing activities mainly reflecting $\circ$ rebalancing of liquidity facilities, principals on lease repayments as well as interest charges
• Healthy inventory position, marginally up NOK 7 million $\circ$ YoY, ensuring good availability and service levels for the upcoming peak season
• Net working capital reduced significantly YoY by NOK $\circ$ 763m through increased payables, mainly driven by increased factoring, as well as tax deferment scheme in Sweden

Financial position

Key metrics consistently improved

• Strengthened financial position with increased equity $\circ$ YoY, 46.0 per cent equity ratio as of end September
• Net interest-bearing debt significantly reduced to $\circ$ NOK1187 million from NOK2853 million last year, through refinancing, repayment of debt though new equity as well as supported by the utilisation of the Swedish tax deferment scheme
• Liquidity reserve increased to a solid NOK1149 million at $\circ$ the end of September 2023, driven by refinancing and lower working capital (including effects of Swedish tax deferment scheme)
• Leverage ratio reduced again to 2.6x in Q3 2023, and the $\circ$ Group continues to operate in compliance with all undertakings of its financial facilities

Summary and outlook

MAN

F)

KOMPLETT^°GROUP

Key takeaways

• Significant progress across all key financial $\bigcirc$ indicators combined with a more resilient financial position
• Clear EBIT improvement in a difficult market, $\circ$ supported by good cost control
• 1.7 pp gross margin expansion with central sourcing $\circ$ further progressed
• Healthy stock situation, good service levels and $\circ$ strong position into peak season
• Additional measures being executed to mitigate $\circ$ continued challenging markets

Well positioned for 2024 and onwards

Save the date for Komplett Group's Capital markets day 29 February 2024

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 consider sit to be auseful measure to show the management's view on the overall picture of profit generation before operating costs 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.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
Tot al operating revenue	3874	3784	11127	9961	14 618
- Cost of goods sold	(3350)	(3338)	(9580)	(8765)	(12824)
= Gross profit	524	447	1547	1196	1794
Gross margin	13.5%	11.8%	13.9%	12.0%	12.3%

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.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
Total operating revenue	3874	3784	11127	9961	14 618
Total operating expenses	3849	3798	11108	10004	14612
- Cost of goods sold	(3350)	(3338)	(9580)	(8765)	(12824)
- One-off cost	(13)	(4)	(29)	(60)	(80)
= Total operating expenses (adj.)	485	457	1499	1180	1707
Operatina cost percentage	12.5%	12.1%	13.5%	11.8%	11.7%

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 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 IFRS16.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
EBIT	26	(14)	19	(43)	6
- EBIT impact of IFRS16	(4)	(3)	(11)	(9)	(12)
+Dep B2C, B2B, Dist. Other	35	33	108	82	115
$=$ EBITDA exclIFRS16	57	16	115	30	109

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 them anagement's view on the efficiency in the profit generation of the group's operations before one-off items.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
Tot al operating revenue	3874	3784	11127	9961	14618
EBIT	26	(14)	19	(43)	6
+ One-off cost	13	4	29	60	80
= EBIT adjusted	39	(10)	48	17	87
FBIT marain adjusted	1.0%	$(0.3\%)$	0.4%	0.2%	0.6%

EBIT margin adjusted: EBIT adjusted as a percentage of total operating revenue. The group has presented this item be cause it considersit to be a useful measureto show the management's view on the efficiency in the profit generation of the group's operations before one-offitems 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.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YT D 2022	FY 2022
Tot al operating revenue	3874	3784	11127	9961	14618
EBIT	26	(14)	19	(43)	6
EBIT margin	0.7%	$(0.4\%)$	0.2%	(0.4%	0.0%

Net working capital: Working capital assets, comprising inventories, trade receivables, trade payables andt other current assets and liabilities. The deferred Swedishtax liability is classified as other current liability in accorance with local accounting principles. The management considers it to be a useful indicator of the group's capital efficiency in its day-to-day operational activities.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
Inventory	2108	2101	2108	2101	1928
+ Trade receivables - regular	236	504	236	504	309
- Trade payables	(1407)	(1317)	(1407)	(1317)	(1412)
+/-Otherassets and liabilities	(653)	(241)	(653)	(241)	(181)
= Net working capital	284	1047	284	1047	644

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 indebte dness, financial flexibility and capital structure. As mentioned above interest-bearing debt does not include the deferred Swedish taxliability. 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

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
Long-term loans	800	500	800	500	400
+ Short-term loans	16	1844	16	1844	625
- Cash/cash equivalents	(168)	(85)	(168)	(85)	(149)
= Net interest-bearing debt	649	2259	649	2259	876
+ IFRS 16 liabilities	538	593	538	593	558
=Net int.bear.debt incl. IFRS 16	1187	2853	1187	2853	1434

Operating free cash flow: EBITDA excl. impact of IFRS 16 less investment in property, plant and equipment, less change in net working capit alless change in trade receivable 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.

Reconciliation

Amounts in NOK million	03 2023	03 2022	YTD 2023	YTD 2022	FY 2022
EBITDA excl IFRS16	57	16	115	30	109
- Investments	(39)	(29)	(128)	(101)	(177)
+/- Change in net working capital	111	302	361	347	750
+/- Change in deferred payment	$\overline{2}$	6	(6)	33	39
$=$ Operating free cash flow	131	295	342	309	721

Komplett + NetOnNet pro forma key figures

Key figures YTD 2023

	Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2023	YTD 2023	YTD 2023	YTD 2023
Operating revenue	11 127	6997	4130
$Growth (\%)$	$-2.6%$	0.0%	$-6.8%$
Gross profit 1	1547	883	663
Gross margin $(\%)$	13.9%	12.6%	16.1%
Operating expenses (ex. dep and one-off)(adj.)	$-1250$	$-756$	-494
Depreciation and amortisation	$-249$	$-99$	$-111$	$-38$
Total operating expenses (adj.)	$-1499$	$-855$	$-605$	$-38$
Operating cost percentage (adj.) 1	$-13.5%$	$-12.2%$	$-14.7%$
$EBIT$ (adj.) 1	48	28	58	$-38$
EBIT margin (adj.) (%) 1	0.4%	0.4%	1.4%
One-off cost	$-29$	$-22$	$-7$
EBIT	19	6	51	$-38$
Net financials	$-125$	$-107$	$-18$
Profit before tax	$-106$	$-101$	33	$-38$
Profit before tax $(\%)$	$-1.0%$	$-1.4%$	0.8%

Key figures YTD 2022

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2022	YTD 2022	YTD 2022	YTD 2022
Operating revenue	11429	6999	4430
Growth $(\%)$	$-12.2%$	$-9,7%$	$-15.7%$
Gross profit 1	1410	780	630
Gross margin $(\%)$ 1	12.3%	11.1%	14.2%
Operating expenses (ex. dep and one-off)(adj.)	$-1178$	$-658$	$-520$
Depreciation and amortisation	$-223$	$-93$	$-95$	$-34$
Total operating expenses (adj.)	$-1401$	$-752$	$-615$	$-34$
Operating cost percentage (adj.) 1	$-12.3%$	$-10.7%$	$-13.9%$
$EBIT$ (adj.) 1	9	29	15	-34
EBIT margin (adj.) $(\%)$	0.1%	0.4%	0.3%
One-off cost	$-60$	$-60$
EBIT	$-51$	$-32$	15	$-34$
Net financials	$-78$	$-31$	$-10$	$-36$
Profit before tax	$-129$	$-63$	5	$-71$
Profit before tax $(\%)$	$-1.1%$	$-0.9%$	0.1%

	Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2023	YTD 2023	YTD 2023	YTD 2023
Total operating income	11 127	6997	4130
Cost of goods sold	$-9580$	$-6113$	$-3467$
Employee benefit expenses	$-735$	-419	$-316$
Depreciation and amortisation expense	$-249$	$-99$	$-111$	$-38$
Other operating expenses	$-545$	$-359$	$-185$
Total operating expenses	$-11108$	$-6991$	$-4079$	$-38$
OPERATING RESULT	19	6	51	$-38$
Net finance income and expenses	$-125$	$-107$	$-18$
PROFIT BEFORE TAX	$-106$	$-101$	33	$-38$
Tax expense	15	17	-9	7
PROFIT FROM CONTINUING OPERATIONS	$-91$	-84	23	$-31$
Profit/loss on discontinued operations
PROFIT FOR THE PERIOD	$-91$	-84	23	$-31$

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2022	YTD 2022	YTD 2022	YTD 2022
Total operating income	11429	6999	4430
Cost of goods sold	$-10018$	$-6218$	$-3800$
Employee benefit expenses	$-693$	$-355$	$-339$
Depreciation and amortisation expense	$-223$	$-93$	$-95$	-34
Other operating expenses	$-545$	$-364$	$-182$
Total operating expenses	$-11480$	$-7030$	$-4415$	$-34$
OPERATING RESULT	$-51$	$-32$	15	$-34$
Net finance income and expenses	$-78$	$-31$	$-10$	$-36$
PROFIT BEFORE TAX	$-129$	$-63$	5	$-71$
Tax expense	16	1	$-0$	15
PROFIT FROM CONTINUING OPERATIONS	$-113$	$-62$	4	$-56$
Profit/loss on discontinued operations	6	6
PROFIT FOR THE PERIOD	$-107$	-56	4	-56

... $\blacksquare$

e.