Komplett ASA

Investor Presentation • Feb 9, 2023

Fourth quarter 2022

Lars Olav Olaussen, CEO Krister A. Pedersen, CFO

9 February 2023

Challenging top line, superior position

• o Market share doubled following the strategic combination with NetOnNet - synergy realisation progressing as planned
• o Cash flow from operations of NOK 1.1 billion driven by material working capital improvements
• o Industry-leading cost position maintained and further cost improvements initiated
• Successful refinancing completed o
• o Top line performance hampered by challenging markets
• o Well-positioned in large, structurally growing and attractive markets

Note: All figures are presented as reported unless otherwise stated.

NetUnNet has been consolidated into Komplett's financial statements as of 1 April 2022 and is reported as a part of the B2C segment.

M&A driven revenue growth offset by weaker market demand

• Step-change in revenue base from strategic O combination with NetOnNet effective 1 April 2022
• Including NetOnNet pro forma, the Group's revenue decreased by 15 per cent in 04-22 vs 04-21 due to weaker markets
• o Online share is returning to pre-pandemic levels, but continues to grow in a long-term perspective

Operating revenue (NOK million)

Gross margins trending positively

• Despite volume decline, the overall gross O margin reached its highest quarterly level in 2022 at 12.8 per cent
• o Margin improvement supported by successful inventory reduction totalling NOK 600 million per year-end
• Supplier negotiations following the O combination NetOnNet are progressing as planned, with P&L effect from 2023 onwards

Gross margin by segment	04-21	04-22
B2C	14.1%	15.8%
B2B	18.8%	19.0%
Distribution	6.6%	5.7%

5

Strong cost control, EBIT impacted by volume decline

• EBIT (adj.)] of NOK 70 million includes: o
  • o Positive NOK 51 million from NetOnNet operations
• Industry-leading cost position maintained
  • 1 per cent decline in like-for-like O operating expenses resulted in an opex share of 10.2 per cent in Q4, excluding the impact from M&A
  • o Cost initiatives with a total gross impact of SEK 70-90 million launched in NetOnNet with effect from 2023
• Online-first business model mitigating the negative effects of market inflation

1 Idijusted for one-off costs of NOK 20 million maily related to cost reduction initiatives in NetOnNet and changes made to the accounting principles of NetOnNet in order to align them with those of the Komplett Group.

B2C

Continued weak market, but improved gross margin trend

• 18 per cent pro forma revenue decline due to:
  • o More conservative consumer spending and temporary market saturation following consumption peak
  • o Online share returning to pre-pandemic levels
• o Compared with the preceding quarter, the gross margin is trending positive, driven by an improved inventory level
• EBIT impacted by lower sales volume 0

B2B

Lower demand from smaller businesses, resilient gross margin

• Lower demand, especially from smaller O businesses in the SME segment
• o Gross marqin improvement despite net sales decline
  • o Relative to the previous quarter, the gross margin improved by 2.9 percentage points as a result of improved inventory levels
• o Improved EBIT compared with previous quarters
  • Relative to the previous quarter, the EBIT margin improved by 3.0 percentage points

Distribution

Market demand impacted by consumer sentiment, improved operating expenses

• An overall weaker consumer sentiment also O impacted demand in the Distribution segment
• o Gross margin impacted by lower growth among smaller retailers and a less favourable product mix
• Strong cost control and a scalable business model O mitigating margin impact, resulting in an EBIT margin of 2.3 per cent

| Financial performance

Krister Pedersen, CFO

Profit and loss

• Strong revenue growth was driven by M&A O
  • NetOnNet consolidated as of 1 April 2022 O
• o However, positive trend in gross margin
• Strong cost control on operations O
• EBIT reduction mainly driven by a volume decline O
• o accounting policy in NetOnNet
• o bank facilities and IFRS 16 effect (NOK 6 million)
• o Profit on discontinued operations of NOK 4 million and NOK 10 million FY related to Comtech closure in 2019
• o Tax income of NOK 47 million related to tax deduction recognised from Marked Gruppen from earlier years
• o Profit for the period of NOK 59 million and negative NOK 32 million on a full-year basis

	04-22	04-21	FY 2022	FY 2021
Operating revenue	4 657	3 292	14 618	11 043
EBIT (adj.)	70	118	87	388
One-off cost	-20	-3	-80	-19
EBIT	50	115	6	369
Net financials	-41	-7	-104	-22
Profit before tax	8	108	-98	347
lax expense	47	-27	56	-48
PROFIT FROM CONTINUING OPERATIONS	55	82	-42	300
Profit/loss on discontinued operations	4		10
PROFIT FOR THE PERIOD	59	82	-32	300

| Cash flow & working capital

• o Positive cash flow from operations of NOK 1 102 million for the full-year, an increase from NOK 65 million in 2021
  • o Driven by the successful reduction in net working capital of NOK 380 million from factoring and inventory reductions
• Cash flow under investing activities amounted to O NOK 1 701 million, compared with NOK 114 million in 2021
  • o The increase is mainly driven by the acquisition of NetOnNet of NOK 1500 million
• o Cash flow used in financing activities was NOK 706 million, compared with NOK 36 million in the same period last year
  • NOK 1 billion, and the equity issue with net proceeds of NOK 987 million were the main drivers

Cash flow	04-22		04-21	FY 2021
Net cash from operating activities	560	53	1102	65
Net cash used in investing activities	-77	-14	-1 701	-114
Net cash (used in)/from financing activities	-419	-30	706	36
Net increase in cash and cash equivalents	64	9	103	-12

Change in net working capital®	04-22	04-21	FY 2022	FY 2021
Change in inventory	-172	231	-686	425
Changes in trade receivables - regular	-195	17	-422	186
Changes in payables	-95	-191	149	-190
Changes in other assets and liabilities	60	-63	208	35
Change in net working capital	-403	94	-750	455

Financial position

• o Equity issue of net NOK 987 million in Q4 to repay the bridge facility
• o RCF facility of NOK 1300 million and overdraft facility of NOK 400 million
  • o
• o NOK 1 434 million compared with NOK 876 million last year
• o The corresponding figures excl. IFRS 16 was NOK 876 million compared to NOK 566 million last year
• o The liquidity reserve was NOK 1 333 million at the end of the year compared with NOK 534 million one year earlier
• o 1.7x last year

| Summary and outlook

Lars Olav Olaussen, CEO

Key takeaways

• o Top line performance hampered by challenging markets, positive trend in gross margin
• o Continued reduction in net operating costs and synergy realisation on track
• Healthy inventory level following material inventory reduction
• o Full-year operational cash flow of NOK 1.1 billion driven by improved working capital
• Private placement completed and new long-term credit facilities in place

Outlook

• o into the first half of 2023
  • o Over time, market demand and the share of online trade are expected to return to their attractive growth trajectory
• o Gross margins trending positively
  • o forward
  • o Cost synergies of NOK > 200 million on track, of which NOK 100 million from 2023
• Continued cost improvements o
  • o Cost-reducing initiatives in NetOnNet implemented with effect from 2023
  • o effects of market inflation
• o stock composition, and strong cost control

Alternative Performance Measures (APMs)

Reconciliation

The APMs used by Komplett Group are set out below(presented in alphabetical order):

E BIT 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 use ful me asure to show Management's view on the efficiency in the profit generation of the Group's operations before one-off items. Reconciliation

	04.22	04:21	FY'22	FY 21
Total Operating revenue	4 657	3 292	14 618	11 043
EBIT	50	115	6	369
+ One-off cost	20	3	80	19
= EBIT adjusted	70	118	87	388
EBIT Margin adjusted	15 %	3,6 %	0,6 %	3,5 %

E BIT 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 Management's view on the efficiency in the profit generation of the Group's operations as a percentage of total operating revenue.

Reconciliation

	04.22	04:21	FY'22	FY'21
Total Operating revenue	4 657	3292	14 618	11 043
EBIT	50	115	6	389
EBIT margin	1,1 %	3,5 %	0.0 %	33%

E BIT Margin adjusted: EBIT adjusted as a percentage of total operating revenue. The Group has presented this item because it considers it to be a useful measure to show 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. Reconciliation - see above under EBIT adjusted

E BITDA 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 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.

	0422	0421	FY'22	FY'21
EBIT	50	115	6	369
- EBIT - IFRS 16	-4	-2	-12	-g
+ Dep B2C, B2B, Dist. Other	33	16	115	64
= EBITDA excl IFRS 16	79	129	109	424

Gross Margin: Gross Profit (as defined below) as a percentage of total operating revenue. The Group has presented this item because it considers it to be a use ful me asure to show Management's view on the efficiency of gross profit generation of the Group's operations as a percentage of total operating revenue. Reconciliation - see below under Gross Profit

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 Management's view on the overall picture of profit generation before operating costs in the Group's operations. Reconciliation

	04:22	04:21	FY'22	FY 21
Total Operating revenue	4 657	3 292	14 618	11 043
- Cost of goods sold	-4 059	-2 871	-12 824	-9 581
= Gross Profit	597	421	1794	1 462
Gross Marain	12.8 %	12,8 %	12,3 %	13,2 %

Net Interest-Bearing Debt: Interest-bearing liabilities less cash and cashe quivalents. The Group has presented this item because Management considers it to be a useful indicator of the Group's indebtedness, financial flexibility and capital structure. The Net Interest-Bearing debt incl. IFRS 16 is a useful measure as indebtedness, included the lease liabilities from IFRS 16, is relevant for the covenants of the Groups credit facilities. Reconciliation

	04:22	04'21	FY'22	FY"21
Long-term loans	400	400	400	400
+ Bank overdraft	625	207	625	207
- Cash/cash equivalents	-149	-41	-149	-41
= Net Int.Bear. Debt	876	566	876	566
+ IFRS 16	558	310	558	310
= Net Int.Bear. Debt incl IFRS 16	1434	876	1434	876

Net Working Capital: Working capital assets, comprising inventories plus total current receivables less trade receivables from deferred payment arrangements less current lease receivables, less working capital liabilities, comprising total current liabilities less current lease liabilities less bank overdraft. Management considers it to be a useful indicator of the Group's capital efficiency in its dayto-day operational activities. Reconciliation

	04:22	04'21	FY'22	FY"21
Inventories	1928	1 305	1928	1 305
Total Curr, receivables	968	1 152	968	1152
Deferred payment	-91	-130	-91	-130
Curr. lease receivables		-12		-12
Total curr, liabilities	-2 953	-1984	-2 953	-1984
Curr. lease liabilities	167	80	167	80
Bank overdraft	625	207	625	207
Net Working Capital	644	619	644	619

+

4

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 Management considers it to be a useful measure of the Group's efficiency in operating activities.

Reconciliation

	04.22	04'21	FY'22	FY 21
Total Operating revenue	4 657	3292	14 618	11 043
Total operating exp.	4 607	3 176	14 612	10 674
- Cost of goods sold	-4 059	-2 871	-12 824	-0 581
- One-off cost	-20	-3	-80	-19
= Total operating expenses (adj.)	528	302	1707	1074
Operating Costs %	11.3 %	9,2 %	11.7 %	9,7 %

Operating Free Cash Flow: EBITDA excl. impact of IFRS16 less investment in property, plant and equipment, less change in Net Working Capital less change in trade receivable from deferred payment arrangements. The Group has presented this item because Management considers it to be auseful measure of the Group's operating activities' cash generation. Reconciliation

	04'22	04'21	FY'22	FY 21
EBITDA excl IFRS 16	79	129	109	424
Investments -	-75	-14	-177	-56
+/- Change in Net Working Capital	403	-94	750	-455
+/- Change in deferred payment	5	-2	39	22
= Operating Free Cash Flow	412	19	721	-65

Total operating expenses (adj.): Total operating expenses less cost of goods sold and One-off cost. The Group has presented this item because Management considers it to be a useful measure of the Group's efficiency in operating activities. Reconciliation - see above under Operating Cost Percentage

Komplett + NetOnNet pro forma key figures

Key figures 04 2022

	Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	04 2022	04 2022	04 2022	04 2022
Operating revenue	4 657	2 836	1821
Growth (%)	-15.5%	-13.9%	-17.9%
Gross profit 1	597	328	270
Gross margin (%)1	12.8%	11.6%	14.8%
Operating expenses (ex dep and one-off)(adj.)	-452	-265	-187
Depreciation and amortisation	-76	-33	-32	-12
Total operating expenses (adj.)	-528	-298	-219	-12
Operating Cost Percentage (adj.)1	-11.3%	-10.5%	-12.0%
EBIT (adj.)1	70	30	51	-12
EBIT margin (adj.) (%)1	1.5%	1.1%	2.8%
One-off cost	-20	-0	-20
FBIT	50	30	31	-12
Net financials	-41	-19	-5	-17
Profit before tax	8	10	26	-28
Profit before tax (%)	0.2%	0.4%	1.4%

Key figures Q4 2021

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	04 2021	04 2021	04 2021	04 2021
Operating revenue	5 510	3 292	2 219
Growth (%)	-5.8%	-4.2%	-8.1%
Gross profit 1	748	421	328
Gross margin (%)	13.6%	12.8%	14.8%
Operating expenses (ex dep and one-off)(adj.)	-492	-270	-222
Depreciation and amortisation	-75	-32	-32	-11
Total operating expenses (adj.)	-568	-302	-254	-11
Operating Cost Percentage (adj.)1	-10.3%	-9.2%	-11.5%
EBIT (adj.)1	180	118	73	-11
EBIT margin (adj.) (%)1	3.3%	3.6%	3.3%
One-off cost	-3	-3
EBIT	177	115	73	-11
Net financials	-21	-7	-1	-12
Profit before tax	157	108	72	-24
Profit before tax (%)	2.8%	3.3%	3.2%

Komplett + NetOnNet pro forma key figures

Key figures YTD 2022

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2022	YTD 2022	YTD 2022	YTD 2022
Operating revenue	16 086	9 834	6 252
Growth (%)	-13.1%	-10.9%	-16.4%
Gross profit 1	2 008	1 108	900
Gross margin (%)1	12.5%	11.3%	14.4%
Uperating expenses (ex dep and one-off)(adj.)	-1 630	-973	-707
Depreciation and amortisation	-299	-126	-127	-46
Total operating expenses (adj.)	-1929	-1 049	-834	-46
Operating Cost Percentage (adj.)1	-12.0%	-10.7%	-13.3%
EBIT (adj.)1	79	59	66	-46
EBIT margin (adj.) (%)1	0.5%	0.6%	1.1%
One-off cost	-80	-61	-20
EBIT	-1	-2	46	-46
Net financials	-19	-51	-15	-53
Profit before tax	-120	-52	31	-99
Profit before tax (%)	-0.7%	-0.5%	0.5%

Key figures YTD 2021 Pro forma Group Komplett NetOnNet Adjustment YTD 2021 YTD 2021 YTD 2021 Amounts in NOK million Operating revenue 18 520 11 043 7477 9.9% 11.9% 7.0% Growth (%) Gross profit 2 652 1 462 Gross margin (%)1 14.3% 13.2% 15.9% Operating expenses (ex dep and one-off)(adj.) -1734 -945

-307

-2 041

-11.0%

611

-19

592

-77

514

2.8%

3.3%

-129

-1 074

-9.7%

388

3.5%

-19

369

-22

347

3.1%

Depreciation and amortisation

Total operating expenses (adj.)

Operating Cost Percentage (adj.) 1

EBIT margin (adj.) (%)1

EBIT (adj.)1

One-off cost

Net financials

Profit before tax

Profit before tax (%)

EBIT

1 Alternative performance measure (APMs)

YTD 2021

-46

-46

-46

-46

-50

-95

1190

-790

-132

-922

268

3.6%

268

-5

263

3.5%

-12.3%

	Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	04 2022	04 2022	04 2022	04 2022
Total operating income	4 657	2 836	1 821
Cost of goods sold	-4 059	-2 508	-1 552
Employee benefit expenses	-244	-133	-110
Depreciation and amortisation expense	-76	-33	-32	-12
Other operating expenses	-228	-132	-96
Total operating expenses	-4 607	-2 306	-1790	-12
OPERATING RESULT	50	30	చి	-12
Net finance income and expenses	-41	-19	-5	-17
PROFIT BEFORE TAX	8	10	26	-28
l ax expense	47	47	-6	6
PROFIT FROM CONTINUING OPERATIONS	55	58	20	-22
Profit/loss on discontinued operations	4	4
PROFIT FOR THE PERIOD	59	61	20	-22

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	04 2021	04 2021	04 2021	04 2021
Total operating income	5 510	3 292	2 219
Cost of goods sold	-4 762	-2 871	-1 891
Employee benefit expenses	-286	-149	-137
Depreciation and amortisation expense	-75	-32	-32	-11
Other operating expenses	-209	-124	-85
Total operating expenses	-5 355	-3 176	-2 145	-11
OPERATING RESULT	177	115	73	-11
Net finance income and expenses	-21	-7	-1	-12
PROFIT BEFORE TAX	157	108	72	-24
Tax expense	-41	-27	-19	5
PROFIT FOR THE PERIOD	118	82	53	-19

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2022	YTD 2022	YTD 2022	YTD 2022
Total operating income	16 086	9 834	6 252
Cost of goods sold	-14 078	-8 726	-5 352
Employee benefit expenses	-937	-488	-449
Depreciation and amortisation expense	-299	-126	-127	-46
Other operating expenses	-773	-496	-278
Total operating expenses	-16 037	-9 :36	-6 205	-46
OPERATING RESULT	-1	-2	46	-46
Net finance income and expenses	-119	-51	-15	-53
PROFIT BEFORE TAX	-120	-52	31	-99
l ax expense	62	48	-7	21
PROFIT FROM CONTINUING OPERATIONS	-58	-4	24	-78
Profit/loss on discontinued operations	10	10
PROFIT FOR THE PERIOD	-48	5	24	-78

	Pro forma Group	Komplett	NetOnNet	Adjustment
Amounts in NOK million	YTD 2021	YTD 2021	YTD 2021	YTD 2021
Total operating income	18 - 20	11 043	7 477
Cost of goods sold	-15 868	-9 581	-6 287
Employee benefit expenses	-1 015	-511	-504
Depreciation and amortisation expense	-307	-129	-132	-46
Other operating expenses	-739	-453	-286
Total operating expenses	-17 929	-10 674	-7209	-46
OPERATING RESULT	5992	E- (SC)	253	-46
Net finance income and expenses	-77	-22	-5	-50
PROFIT BEFORE TAX	54	347	263	-95
l ax expense	-85	-48	-58	20
PROFIT FOR THE PERIOD	430	300	205	-75