Komplett ASA

Investor Presentation • Feb 29, 2024

Capital Markets Day

29 February 2024

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 forward-looking 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 forwardlooking 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.

Agenda for today

Time	Topic	Speaker
09:00	Opening words, key messages and strategic overview	Jaan Ivar Semlitsch, Group CEO
	Our plan to accelerate value creation	Jaan Ivar Semlitsch, Group CEO
	Leveraging our commercial platform	Andreas Westgaard, Group CCO
10:00	Break
10:15	Portfolio of strong and differentiated consumer electronic businesses
	NetOnNet	Josefin Dalum, MD NetOnNet
	Webhallen	Trygve Hillesland, MD Webhallen
	Komplett Services (Komplett, Ironstone and Itegra)	Erlend Stefansson, MD Komplett Services
11:00	Financials	Thomas Røkke, Group CFO
11:25	Summary	Jaan Ivar Semlitsch, Group CEO
11:30	Q&A	Executive team

Opening words and strategic overview

Jaan Ivar Semlitsch Chief Executive Officer

Our key messages today

The leading online-first champion with retail brands loved by customers

2

1

Commercial, tech and cost advantages will be realised via shared back-end

3

Clear organic revenue growth plan: 18bn by 2026 and 20bn by 2028

4

New financial targets of 3-4%+ EBIT and >70% cash conversion

New and experienced executive management team

Jaan Ivar Semlitsch Chief Executive Officer Feb '23

Thomas Røkke Chief Financial Officer Mar '23

Erlend Stefansson MD Komplett Services May '23

Andreas Westgaard Chief Commercial Officer Aug '23

Josefin Dalum MD NetOnNet Dec '23

Markus Solvik Chief Strategy Officer Feb '23

Trygve Hillesland MD Webhallen Jan '24

Kristin Torgersen Chief HR Officer Feb '23

Komplett Group at a glance

A multi-segment family of online-first brands with passion for electronics & IT products and services

Electronics & IT products and services

focus & passion

We are a portfolio of online-first pioneers

Tech is deeply embedded in our DNA

Strong strategic platform for

Fundamentally attractive market

Positioned in the fastest growing online segment

further expansion Cost leadership position and scalable platform

Retail brands with industry leading customer satisfaction

Consumer electronics and appliances is a fundamentally attractive market supported by strong underlying drivers

1. Worldwide 2023 to 2030. 2. 3.9 years average replacement for consumer electronic in Scandinavia in 2023. 3. Volume of data created, captured, copied, and consumed worldwide from 2020-2025. Source: Statista; Euromonitor; Newzoo Gaming Market report.

11

… and we are well positioned to gain on market recovery

We are heavily exposed towards categories with short innovation and replacement cycles …

… and uniquely positioned to capture an online channel returning to historic growth trajectory

Nordic CE online share lagging advanced markets and expected to return to historic growth trajectory after fall in 2022 and 2023

1. Average new assortment lineups from suppliers per year for each category 2. Average number of years before products are replaced in Scandinavia in 2022 and 2023 Source: Euromonitor (replacement cycles); Statista (historic and forecasted online shares for CE)

We have lean and scalable model with industry leading OPEX level

= Online first

¹³ 1. OPEX (incl. D&A) as percentage of net sales for 2022 or nearest fiscal year. Deviating fiscal year-end: MediaMarkt Sep '22; Elkjøp Apr '23; WhiteAway Jul '23; Dustin Aug '23. Source: Official company accounts and annual reports

Portfolio of strong B2C and B2B brands loved by customers

Our B2C brands have differentiated positioning and online-first model

28 3

Targeting gaming enthusiasts – both hardcore and casual gamers – though playfulness and shared passion for gaming

• Assortment focused on gaming and gaming related products, incl. wearables, phones, toys & gadgets
• Engaged community & events

Small-box stores in high street and shopping centres

Position and target customers	Obvious choice for tech savvy & gamers seeking news and innovations, approachable expert for less tech savvy customers	Addressing needs of value oriented customers in mass market seeking quality products at affordable prices	Targeting gaming enthusiasts – both hardcore and casual gamers – though playfulness and shared passion for gaming
Focus and stronghold	Electronics only focus • • Authority in tech and gaming Leading in custom-built PCs •	• Broad assortment • Broad private label offering Owner of low-price position •	• Assortment focused on gaming and gaming related products, incl. wearables, phones, toys & gadgets • Engaged community & events
Online share (2023)	100%	45%	70%
Retail model and number of stores	Pure online - no stores	Self-service warehouse shops outside city centres	Small-box stores in high street and shopping centres

We will utilise our scale to drive commercial and cost advantages – while maintaining strong brand autonomy

Effective platform for expansion

Separate retail brands and shop fronts tailored to specific customer segments and needs

Dedicated capabilities per brand in customer facing functions to ensure differentiation, brand autonomy and tailored customer offerings

Centralisation in key functions to build scale and capabilities, including:

• Central commercial team
• Shared supply chain network
• Common tech, analytics and data structure and capabilities

Effective platform for further growth and M&A that enables quick realisation of synergies without high investments or high restructuring costs

Our plan to accelerate value creation

Jaan Ivar Semlitsch Group Chief Executive Officer

Our medium-term financial targets

Sales 2026-28 18-20+ BNOK

EBIT 2026-28 3-4%+ Cash conversion 2026-28 >70%

Organic growth higher than underlying market

Among the most profitable in our industry High rotation of capital and NWC efficiency

Our value creation plan towards 20 BNOK sales and 4% EBIT

Road to 20 BNOK in revenues Road to 4% EBIT margin

Our ESG focus areas and targets

Circular business model

Climate neutral

Our

15% of Group revenues from circular products and services by 2028

Scope 1 & 2 GHG reduction of 42% by 2030

Net zero by 2040

Attractive & inclusive employer

Industry leading employee temperature

Gender balance in leadership positions

Our people are core of our execution

Five pillars lay the foundation for our corporate strategy

Leveraging our commercial platform

Andreas Westgaard Chief Commercial Officer

We see exciting technologies expected to drive upgrade cycles and expansion of installed base the coming years

We are an attractive partner for the leading electronics brands

We are expanding our core strengths across the Group

We are rolling out our award-winning PL portfolio and expanding our in-house PC production line

Significant synergies already realised – now taking next step in performance with fully integrated buying and commercial team

Building and developing four distinct categories

Home appliances (MDA & SDA) and telecom with subscriptions key growth areas with large potential

1. Relative market share vs total market share for Komplett Group in Sweden and Norway Note: MDA = Major Domestic Appliances (white goods and other large home appliances), SDA = Small Domestic Appliances (smaller household appliances)

31

Josefin Dalum Managing Director – NetOnNet

We make electronics available to everyone as easily, affordably and sustainably as possible.

31 stores across Sweden and Norway

6.0

billion SEK R E V E N U E

Owner of low-price position and #2 top of mind in Sweden

~900

Employees

1.8

million C L U B M E M B E R S

Digital first and self-service

Store concept with high level of selfservice both through digital information and service level

Key elements in unique store concept

"Lagershop" stores functioning as local warehouse hubs strengthening fast last mile deliveries and seamless omni-journey incl. aftermarket

Shops deliberately signalizing warehouse feel and low prices strengthening price perception and enabling organic growth

57%

✓ Strategic membership base ✓ Privileged communication channel ✓ Enhanced loyalty and experience

Tech agenda to support customer journey & efficiency

Home Appliances and Subscriptions

Revamped offering and

(attractive white spots)

Private label expansion

lagershop roll-out in Norway

Lagershop roll-out in Sweden

Operational efficiency and resizing cost base

• Double market share in Norway
• 5-7 new lagershops next 3 years
• 3-5 new lagershops next 3 years
• Growth online and offline
• Double private label share
• Range and assortment
• Expand segments with low presence
• Build on what's proven
• OPEX reduction and efficiency initiatives
• Automation and customer guidance tools

Webhallen

Trygve Hillesland Managing Director – Webhallen

Komplett Services

Erlend Stefansson

Managing Director – Komplett Services

Our ambition – world's best online trade specialist in electronics

Our core segments

Consumers and businesses open to buy online

Obvious choice for tech savvy and gamers

Approachable expert for less tech savvy

Komplett is based on matching needs and wants of our customers

Why consumers choose Komplett

Intimate and genuine customer relationships built over 20+ years

Why businesses choose Komplett

Solutions adapted to individual companies' needs

Right products at the right price in stock

Easy to find, easy to purchase

Fast and reliable delivery

Competitive and transparent pricing

Simple and seamless online shopping experience

Highly competent customer service and sales

Convenient delivery and last mile solutions

Loved by our customers – unrivalled in our industry

#1 #1

Norwegian Retailer overall with Prisjakt 2023

Most satisfied customers amongst all consumer electronics retailers. Amongst top 10 in Norway

Most satisfied and loyal customers in our industry with Norges Beste Kundeopplevelse. Overall #4

#1

Komplett PC: Unique value proposition at scale across B2C and B2B

Scaled PC producer with ~45 000 computers annually

High performing PCs with only tested A-brand components

Fully customizable with short production and delivery time

Leading time-to-market on new components

Extended warranty, free support and simple DIY upgrade kits to prolong product lifetime

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World class operational setup – enabling cost efficiency and future growth

Itegra provides scale and robustness to our revenue base, while our core business model matches customer needs

Clear benefits from combining B2C, B2B and Itegra

1 More relevant to key A-brand suppliers

Stable and efficient utilisation of supply chain ²

Monetisation of local presence and procurement capabilities ³ Efficient

Core business model translate to success in the distribution market

Key strategic growth priorities

Utilise tech position to expand MDA & SDA business

B2C

Expand product portfolio and customer base

Distribution

Build Komplett brand on superior customer and tech position B2C & B2B

Deep dive

Drive services and subscription offering

B2C & B2B

Deep dive

Expand B2B; SME account sale, Sweden and Ironstone

B2B

Next level is to build Komplett brand on superior customer and tech position

Komplett Certified is our seal of approval representing great value products for our customers tested in our own lab

We will expand FLEX and enhance our service offering to boost margins

Expand B2B: SME account sale, Sweden and Ironstone

Financials

Thomas Røkke Chief Financial Officer

More than two years of challenging market conditions for electronics

More than two years of market decline for electronics and appliances after sales boost in covid period

• Strong demand boost into Covid period coupled with supply chain and availability constraints
• Consumer sentiment subsequently impacted by challenging macroeconomic conditions
• Normalised spending patterns following shift from services to goods during Covid lock-downs
• Supply chain constraints were followed by excess inventory and pricing pressure
• Online share quickly increasing then partly normalising after boost during pandemic

Komplett successfully building scale in a challenging market

Consistent margin improvement during 2023

Gross margin development by quarter 2022-23

Improved health of inventory across industry

Better pricing environment & material imbalances 2022

Pricing and margin management with improved processes

Realisation of scale advantages from NetOnNet acquisition

Synergies being realised in accordance with plan

Improving operating results expected into a still challenging 2024

Attractive structural growth in existing core remains…

Growing Nordic consumer electronics and

…. combined with a business model with solid position and growth potential

Consumer electronics and appliances market with solid growth and recovery potential

Online-first model with solid positions and market shares in fastest growing segment

Market positions underpinned by cost efficient brands with high customer satisfaction

Differentiated business model combining scale, uniqueness in brands and concepts while providing risk diversification

… with additional organic sales and margin potential being addressed

Store network expansion Sales +0.6-0.9bn	Sales mix and services share of revenue • Services and subscriptions growth Private label penetration and extensions • • New segments and product access EBIT +0.9-1.4pp.
Home appliances & Telecom	Sourcing and margin enhancements
Sales +0.7-1.0bn	• Continued sourcing scale benefits EBIT 3-4%+ Improved commercial execution • 2026-28 • Price and margin management Komplett ways of working • EBIT +0.5-0.7pp.
B2B & Itegra Sales +0.6-0.9bn
	Scale benefits and cost optimisation
Gaming & gaming related Sales +0.3-0.5bn	Store & logistics operational excellence • • Marketing & indirect spend optimisation Scalability in platform • EBIT +1.2-1.8pp.

Capital turn in CE-Retail yield cash efficient growth and high returns

Average rotation of invested capital by retail type 2018-22¹

Asset turns (x)

High rotation of capital enables growth with focus on strategic investments

High proportion of planned IT upgrades and capex completed

Supply chain programme ongoing but main investments moved to 2025+

Efficient capital use and medium-term operating cash conversion of >70%

Note: 1) Invested capital excluding goodwill divided by sales 2018-22 using median of period average of reported figures 2) Sales and assets corrected for NetOnNet full year effects 2022 3) Average return on Invested capital (ROIC) based on Net Operating Profit After Taxes (NOPAT) divided by invested capital (IC) excluding goodwill but including other intangible assets 2018-22 Source: ValueScience, Orbis, Annual Reports, Komplett Analysis

Remaining potential to improve NWC through ongoing measures

2.8%

Net working capital (NWC) ¹ levels by select by CE-Retailers

Leveraging increased scale in commercial terms with suppliers

Improving sales and operations planning processes (S&OP)

Using selective trade related financial solutions (e.g. Factoring)

Developing joint supply chain setup and internal coordination

Note: 1) Net working capital defined as inventories, receivables and current assets less accounts payable and short-term liabilities (see also APM overview); 2) Averages of NWC in percent of sales for the period 2018-202 except for Elon (2021 and 2022) as well as Komplett ASA (Q4 2023) Source: ValueScience, Annual Reports, Komplett analysis

On a journey towards a balanced capital structure

Improving leverage during recent periods with aim to maintain leverage ratio of 2-3x …

NIBD/EBITDA-ratio¹ (x)

…. but still potential to balance out structure to support our capital allocation strategy

Continued organic deleveraging by improving profitability

Balance funding structure and lower financial charges (expensive short-term on- and off-balance sheet items)

Reinvest as required to build scale and excellence in developing our strategic platform

Convert high cash conversion to shareholder returns through dividends

Long-term growth, but challenging markets near-term

Attractive strategic platform for creating value

Organic growth and profit potential to be realised 2024-28

Fast rotation of capital enable growth with high cash conversion

Organic deleveraging with balanced capital structure targeted

Returning cash to shareholders remains priority

Our financial targets

Sales 2026-28 18-20+ BNOK

Organic growth higher than underlying market

EBIT 2026-28 3-4%+

Among the most profitable in our industry Cash conversion 2026-28 >70%

High rotation of capital and NWC efficiency

NIBD/EBITDA 2-3x

Balanced and controlled capital structure

Jaan Ivar Semlitsch Chief Executive Officer

Five pillars lay the foundation for our corporate strategy

Our key messages today

2

1

Commercial, tech and cost advantages will be realised via shared back-end

3

Clear organic revenue growth plan: 18bn by 2026 and 20bn by 2028

4

New financial targets of 3-4%+ EBIT and >70% cash conversion