Komplett Asa · OSL:KOMPL
Komplett Asa — Investor Day (February 2024)
77 slides from Komplett Asa's investor day presentation, Feb 29, 2024
Slide 1: Capital Markets Day
Capital Markets Day 29 February 2024
Slide 2: Disclaimer
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 c
Slide 3: Agenda for today
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 d
Slide 4: Opening words and strategic overview
Opening words and strategic overview Jaan Ivar Semlitsch Chief Executive Officer
Slide 5: Our key messages today
Our key messages today 1 The leading online-first champion with retail brands loved by customers 2 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 conversi
Slide 6: New and experienced executive management team
New and experienced executive management team Jaan Ivar Semlitsch Erlend Stefansson Josefin Dalum Trygve Hillesland Chief Executive Officer MD Komplett Services MD NetOnNet MD Webhallen Feb ‘23 May ‘23 Dec ‘23 Jan ‘24 Thomas Røkke Andreas Westgaard Markus Solvik Kristin Torgersen Chief Financial Off
Slide 7: Komplett Group at a glance
Komplett Group at a glance A multi-segment family of online-first brands with passion for electronics & IT products and services Three NetOnNet Webhallen Komplett Services business Borås, Sweden Stockholm, Sweden Sandefjord, Norway units 6.0 bn 1.8 bn 8.1 bn Three customer B2C1 B2B Distribution segm
Slide 8: We are a portfolio of online-first pioneers
We are a portfolio of online-first pioneers NetOnNet China Komplett install automated NetOnNet and SIBA Komplett Group Komplett.no Netonnet.se Webhallen.com purchasing office warehouse as one of joined forces, SIBA and NetOnNet launched launched launched established AutoStore’s first customers brand
Slide 9: Tech is deeply embedded in our DNA
Tech is deeply embedded in our DNA Pioneer and leading Early adopter efficiency in automation of Gen AI Early access and Real-time analytics test partner for for performance latest technology optimisation Leading tech Award-winning digital platforms for omni marketing with real- and pure online time
Slide 10: Strong strategic platform for further expansion
Fundamentally attractive market Positioned in the fastest growing online segment Strong strategic platform for further expansion Cost leadership position and scalable platform Retail brands with industry leading customer satisfaction 10
Slide 11: Consumer electronics and appliances is a fundamentally attractive market
Consumer electronics and appliances is a fundamentally attractive market supported by strong underlying drivers Unprecedented speed of Continuous product upgrades Digitalisation of workplaces Lifestyle trends, e.g., gaming, innovation in industry with technology improvements and everyday life health
Slide 12: … and we are well positioned to gain on market recovery
… and we are well positioned to gain on market recovery We are heavily exposed towards categories with … and uniquely positioned to capture an online short innovation and replacement cycles … channel returning to historic growth trajectory Innovation Replacement Nordic CE online share lagging advanc
Slide 13: We have lean and scalable model with industry leading OPEX level
We have lean and scalable model with industry leading OPEX level OPEX % of net sales1 22.6 20.2 19.4 14.2 14.5 14.6 12.0 12.5 = Online first 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 ’2
Slide 14: Portfolio of strong B2C and B2B brands loved by customers
Portfolio of strong B2C and B2B brands loved by customers The pure play online The low-price challenger The gaming destination The simple and secure IT The B2B online electronics specialist with with convenient with an engaged and loyal service partner for B2B electronics specialist expert authority
Slide 15: Our B2C brands have differentiated positioning and online-first model
Our B2C brands have differentiated positioning and online-first model Obvious choice for tech savvy & Addressing needs of value- Targeting gaming enthusiasts – Position and gamers seeking news and oriented customers in mass both hardcore and casual gamers target customers innovations, approachable e
Slide 16: We will utilise our scale to drive commercial and cost advantages
We will utilise our scale to drive commercial and cost advantages – while maintaining strong brand autonomy Our operating model logic Separate retail brands and shop fronts tailored to specific customer segments and needs Dedicated capabilities per brand in customer facing functions to ensure differ
Slide 17: Our plan to accelerate value creation
Our plan to accelerate value creation Jaan Ivar Semlitsch Group Chief Executive Officer
Slide 18: Our medium-term financial targets
Our medium-term financial targets Sales EBIT Cash conversion 2026-28 2026-28 2026-28 18-20+ BNOK 3-4%+ >70% Organic growth higher Among the most High rotation of capital than underlying market profitable in our industry and NWC efficiency 18
Slide 19: Our value creation plan towards 20 BNOK sales and 4% EBIT
Our value creation plan towards 20 BNOK sales and 4% EBIT Road to 20 BNOK in revenues Road to 4% EBIT margin 20+ +3.1%p. B2B & 4.0%+ Store Itegra Improved network Gaming & 0.6-0.9bn purchasing expansion Home gaming- terms Home appliances related 0.6-0.9bn appliances Private label & Telecom 0.5-0.7%p
Slide 20: Our ESG focus areas and targets
Our ESG focus areas and targets Circular Attractive & Climate business inclusive neutral model employer Our 15% of Group revenues Scope 1 & 2 GHG reduction Industry leading employee from circular products and of 42% by 2030 temperature services by 2028 Net zero by 2040 Gender balance in leadership p
Slide 21: Our people are core of our execution
Our people are core of our execution Reached industry average 32% female leaders in 2023 – goal employee temperature during 2023 of gender balance in the future Employee temperature (0-100) Share of female leaders (%) 82 50/50 77 40% Retail average 77 74 32% 2022 2023 Ambition 2023 Short-term Goal a
Slide 22: Five pillars lay the foundation for our corporate strategy
Unique retail brands loved by customers Five pillars lay the Driving force for sustainable Online-first with speed, convenience foundation for our development Preferred choice of customers, and leading tech corporate strategy suppliers and employees Leading efficiency Integrated back-end and OPEX an
Slide 23: Leveraging our commercial platform
Leveraging our commercial platform Andreas Westgaard Chief Commercial Officer
Slide 24: Strong partner to the world's most innovative companies
Strong partner to the world’s most innovative companies
Slide 25: Technologies expected to drive upgrade cycles and expansion of installed base
We see exciting technologies expected to drive upgrade cycles and expansion of installed base the coming years Existing trends expected to continue influencing innovation Connectivity & IoT Home Entertainment Food tech Robots New trends that will be key drivers going forward AR & VR New screen techn
Slide 26: We are an attractive partner for the leading electronics brands
We are an attractive partner for the leading electronics brands 16bn Online- Lean & Fortified revenue first efficient position Large enough to be Agile and fast Resilience through Differentiated retail relevant to all key time-to-market low cost-to-serve concepts with suppliers strongholds 26
Slide 27: We are expanding our core strengths across the Group
We are expanding our core strengths across the Group Strong Private Label Inhouse Recognised leasing & Significant B2B & operation PC production financing solutions Distribution business 2x gross margin Clear #1 in Nordic Flex >10% of Komplett Good balance and vs. A-brands market B2C revenue market
Slide 28: Rolling out our PL portfolio and expanding in-house PC production
We are rolling out our award-winning PL portfolio and expanding our in-house PC production line Strong and differentiated PL brands Broad offering across key categories Building test winners across multiple segments 28
Slide 29: Significant synergies realised – fully integrated buying and commercial team
Significant synergies already realised – now taking next step in performance with fully integrated buying and commercial team From separate teams… … to fully integrated … providing commercial, operational and financial benefits 1 Reduced business complexity Niche player Sweden only 2 Higher gross ma
Slide 30: Building and developing four distinct categories
Building and developing four distinct categories Home appliances (MDA & SDA) and telecom with subscriptions key growth areas with large potential Relative market share1 2.5x (total market share = 1.0) 1.7x 0.7x 0.5x We have key category strongholds … … and opportunities to grow further Computing & C
Slide 31: Key takeaways
A market leading commercial platform with significant scale Unique value proposition to suppliers Key takeaways Core strengths will be leveraged across the Group (e.g., PL) Central commercial team to extract synergies and improve margins Targeted growth opportunities with significant market headroom
Slide 32: NetOnNet
NetOnNet Josefin Dalum Managing Director – NetOnNet
Slide 33: We make electronics available to everyone as easily, affordably and sustainably as possible
Lowest prices Simplicity & Seamless Fast delivery convenience omni-experience We make electronics available to everyone as easily, 33 affordably and sustainably as possible.
Slide 34: 31 stores across Sweden and Norway; owner of low-price position
31 stores across Sweden and Norway Owner of low-price position and #2 Highest ranked among customers top of mind in Sweden Prisjakt (Feb 2024) vs. key competitors 4.5 #1 4.0 4.0 3.6 #2 3.0 #3 #4 #5 4.6 #1 3.6 2.9 #2 2.5 #3 #4 34 6.0 ~900 1.8 million billion SEK Employees CLUB MEMBERS REVENUE
Slide 35: Key elements in unique store concept
Key elements in unique store concept 1 2 3 Digital first and self-service Extended warehouses Efficient, low-cost concept Store concept with high level of self- “Lagershop” stores functioning as Shops deliberately signalizing service both through digital local warehouse hubs strengthening warehouse
Slide 36: Best service level among Consumer Electronics retailers (2023)
Best service level among Consumer Electronics retailers (2023) Gaming retailer of the year (2023) Most convenient shopping #2 Digital leaders in Sweden (2021) experience and #2 user experience overall in Omnichannel Customer experience mapping (2022) #1 Omnichannel Experience in the Nordics every ye
Slide 37: Highly rated by customers
Highly rated by customers 53% 20% >70% of products rated 4 or higher out of ~12.000 reviews during 2023 37
Slide 38: Rapid membership growth – 1.8m total members in 2023
Rapid membership growth – Loyalty club represents ~60% of Members spend more per order 1.8m total members in 2023 total sales, 72% in stores than non-members +28% 1.8 +40% +21% 1.5 1.1 72% 59% 40% 2021 2022 2023 Online Store Total Sweden Norway Non-members Members Non-members Members ✓ Strategic mem
Slide 39: Tech agenda to support customer journey & efficiency
Revamped offering and • Double market share in Norway lagershop roll-out in Norway • 5-7 new lagershops next 3 years Lagershop roll-out in Sweden • 3-5 new lagershops next 3 years (attractive white spots) • Growth online and offline Tech agenda to support • Double private label share Private label e
Slide 40: Webhallen
Webhallen Trygve Hillesland Managing Director – Webhallen
Slide 41: Webhallen in short
ff Our mission is to exceed every gamer's expectation through knowledge, playfulness and passionate people” ul 2 WEBHALLEN IN SHORT 1.9 BSEK in revenues Online 70% | Store 30% 12 stores (Stockholm, Gothenburg) Over loyalty members Awarded in Sweden 6 years in a row rating on Prisjakt Average NPS of
Slide 42: Reasons to love Webhallen
Unique and loyalty club High-street concept time-to-market Partnership with (largest gaming venue in Europe) for product launches Webhallen Community reviews & (best-selling gaming desktop brand Q4 2023) REASONS TO LOVE WEBHALLEN Webhallen has been in the service of gamers for a quarter of a century
Slide 43: Focus on adjusted categories: strategic priorities to increase profitability
FOCUSON ADJUSTED op : M RED CATEGORIES RES N ae STRATEGIC PRIORITIES TO INCREASE PROFITABILITY le home electronics landscape changes and consumer behavior develops, we have set a clear strategy to oe bhall ase profitability and come out on top as the go-to-place for everything gaming and related pur
Slide 44: Focus on core categories
HEAD SMART TOYS& PHONES PHONES GADGETS Allthings gaming (incl. PC and peripherals, components, consoles, VR, etc.), headphones and smartphones ane bhallen from major brands, as well as Webhallen's unique position within toys & gadgets. {we allel 4h a. FOCUS ON CORE CATEGORIES
Slide 45: Adjusted role of stores
STORE WIDER ASSORTMENT — ASSORTMENT & AVAILABILITY OF ONLINE OBVIOUS SPACE TRUSTED FOR 4 The development of Webhallen’s store network will see new venues added when location and profitability of bh Ih wi) Greymatched with the company’s long-term ambition for physical retail as a true omni player. iw
Slide 46: Continued margin expansion
ALWAYS RIGHT TELECOM NEW PRIVATE AND OTHER LABEL WITH SERVICE SERVICES FOCUS ON » 4 Clear actions to continue lifting gross margin levels. ey CONTINUED MARGIN EXPANSION I iwebhallen 46
Slide 47: OPEX reduction
BACK-OFFICE OPERATIONS < NETWORK FROM 17 TO 12 STORES STORE HOURS OPEX REDUCTION Other opportunities within the scope of OPEX are optimising payment and transportation solutions, using daa driven unit economics and driving increased sales towards online and/or drop-in. webhallen 47
Slide 48: Komplett Services
Komplett Services Erlend Stefansson Managing Director – Komplett Services
Slide 49: Komplett Services – E-commerce pioneer since 1996
Komplett Services – E-commerce pioneer since 1996 Komplett B2C Komplett B2B Ironstone Itegra 3.4 bn 1.5 bn 0.1 bn 3.1 bn Pure play online Scalable and efficient Simple and secure Distributor of mobile electronics with unique solutions for online managed IT services and IT products to appeal to techn
Slide 50: Our ambition – world's best online trade specialist in electronics
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 50
Slide 51: Komplett is based on matching needs and wants of our customers
Komplett is based on matching needs and wants of our customers Why consumers choose Komplett Why businesses choose Komplett Intimate and genuine customer Solutions adapted to individual relationships built over 20+ years companies’ needs Wide assortment at attractive terms in stock Right products at
Slide 52: Loved by our customers – unrivalled in our industry
Loved by our customers – unrivalled in our industry #1 #1 #1 Norwegian Retailer overall Most satisfied customers amongst Most satisfied and loyal customers with Prisjakt 2023 all consumer electronics retailers. in our industry with Norges Beste Amongst top 10 in Norway Kundeopplevelse. Overall #4 52
Slide 53: Komplett PC: Unique value proposition at scale across B2C and B2B
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 B2C components Fully customizable with short production and delivery time B2B Leading time-to-market on new components Extended warranty,
Slide 54: World class operational setup – enabling cost efficiency and future growth
World class operational setup – enabling cost efficiency and future growth World class Autostore State-of-the-art Agile web store with inhouse competence and efficiency composable IT-platform web developers (successfully migrated in Q4 23) Cost efficient Agile Speed Scalable 54
Slide 55: Itegra provides scale and robustness to our revenue base
Itegra provides scale and robustness to our revenue base, while our core business model matches customer needs Clear benefits from combining Core business model translate to success B2C, B2B and Itegra in the distribution market 1 More relevant to key A-brand suppliers Stable and efficient utilisati
Slide 56: Key strategic growth priorities
Key strategic growth priorities Build Komplett Utilise tech Expand Drive services Expand B2B; brand on position to product and SME account superior expand MDA & portfolio and subscription sale, Sweden customer and SDA business customer base offering and Ironstone tech position B2C Distribution B2C &
Slide 57: Next level is to build Komplett brand on superior customer and tech position
Next level is to build Komplett brand on superior customer and tech position Our new brand concept highlight our Komplett Certified is our seal of approval differentiators using actual customer representing great value products for our reviews as proof customers tested in our own lab 57
Slide 58: We will expand FLEX and enhance our service offering to boost margins
We will expand FLEX and enhance our service offering to boost margins Improvements to our service offering 2024-2026 How FLEX works Results so far Expand FLEX Circular Services Subscriptions Financial services Pick your Significant share Grow share of Offer trade-in of Offer mobile Improve terms and
Slide 59: Expand B2B: SME account sale, Sweden and Ironstone
Expand B2B: SME account sale, Sweden and Ironstone Target 2026 1.5x 2x 2x Market share* Revenue Revenue Step change account Expand B2B in Scale-up and sales medium SMEs Sweden succeed with Ironstone 1.3bn revenue, industry Established 2020, Proven cloud leading margins 10k customers solutions for SM
Slide 60: Financials
Financials Thomas Røkke Chief Financial Officer
Slide 61: More than two years of challenging market conditions for electronics
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 Growth YoY in %1 Norway Sweden with supply chain and availability constraints “C
Slide 62: Komplett successfully building scale in a challenging market
Komplett successfully building scale in a challenging market Group scale expanded with … gross margins recovering … EBIT margins1 turning from more than 2x since 2019 … and improving … industry low-point in 2022 15.9bn 13.9% 3.5% 13.4% 13.2% 14.6bn 12.7% 12.3% +1.7 pp. 2.8% 11.0bn 2.1x 9.9bn 7.5bn 0
Slide 63: Consistent margin improvement during 2023
Consistent margin improvement during 2023 Gross margin development by quarter 2022-23 Improved health of inventory across +2.3pp. +1.7pp. +1.2pp. industry +1.7pp. 14.1 14.1 14.0 13.5 Better pricing environment & 12.4 12.8 11.8 11.8 material imbalances 2022 Pricing and margin management with improved
Slide 64: Synergies being realised in accordance with plan
Synergies being realised in accordance with plan Sourcing programme delivers largely …. while cost savings in NetOnNet contributes to as expected … mitigating strong cost inflation NOKm NOKm 204 135 Target1 200 37 41 78 Target range1 54 89 40 Realised 2023 Expected 2024 Volume Expected Realised 2022
Slide 65: Improving operating results expected into a still challenging 2024
Improving operating results expected into a still challenging 2024 Underlying financial development1 … and continued improvement stabilising in challenging markets …. expected for 2024 NOK 18.5bn Difficult markets with limited room for 16.1bn 15.9bn Sales growth into first half 2024 14.3% 13.9% Gros
Slide 66: Attractive structural growth in existing core remains…
Attractive structural growth in existing core remains… Growing Nordic consumer electronics and …. combined with a business model with appliances market1 … solid position and growth potential NOK eCommerce CAGR% Retail stores ‘18-23E ‘23E-28F Consumer electronics and appliances Significant cyclical d
Slide 67: … with additional organic sales and margin potential being addressed
… with additional organic sales and margin potential being addressed Sales mix and services share of revenue Store network expansion • Services and subscriptions growth Sales +0.6-0.9bn • Private label penetration and extensions • New segments and product access EBIT +0.9-1.4pp. Home appliances & So
Slide 68: Capital turn in CE-Retail yield cash efficient growth and high returns
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) Consumer electronics and appliances retailers Other specialist retailers 12.6x High rotation of capital enables growth “NOK 1 of EBIT counts 9x with foc
Slide 69: Remaining potential to improve NWC through ongoing measures
Remaining potential to improve NWC through ongoing measures Net working capital (NWC) 1 levels by select by CE-Retailers Average NWC in % of sales 2018-222 Leveraging increased scale in Elon 2.8% commercial terms with suppliers Komplett Group 1.6% Improving sales and operations Verkokauppa 0.3% plan
Slide 70: On a journey towards a balanced capital structure
On a journey towards a balanced capital structure Improving leverage during recent periods with …. but still potential to balance out structure aim to maintain leverage ratio of 2-3x … to support our capital allocation strategy NIBD/EBITDA-ratio1 (x) Continued organic deleveraging by 3.8x improving
Slide 71: Attractive strategic platform for creating value
Long-term growth, but challenging markets near-term Organic growth and profit potential to be realised 2024-28 Attractive strategic Fast rotation of capital enable growth with high cash conversion platform for creating value Organic deleveraging with balanced capital structure targeted Returning cas
Slide 72: Our financial targets
Our financial targets Sales EBIT Cash conversion 2026-28 2026-28 2026-28 18-20+ BNOK 3-4%+ >70% Organic growth higher Among the most High rotation of capital and than underlying market profitable in our industry NWC efficiency NIBD/EBITDA 2-3x Balanced and controlled capital structure Note: (1) EBIT
Slide 73: Summary
Summary Jaan Ivar Semlitsch Chief Executive Officer
Slide 74: Five pillars lay the foundation for our corporate strategy
Unique retail brands loved by customers Five pillars lay the Driving force for sustainable Online-first with speed, convenience foundation for our development Preferred choice of customers, and leading tech corporate strategy suppliers and employees Leading efficiency Integrated back-end and OPEX an
Slide 75: Pioneers forever
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Slide 76: Our key messages today
Our key messages today 1 The leading online-first champion with retail brands loved by customers 2 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 conversi
Slide 77: Slide 77