Komplett Asa · OSL:KOMPL
Komplett Asa — Q4 2022 Earnings Presentation
24 slides from Komplett Asa's earnings presentation, Feb 9, 2023
Slide 1: Fourth quarter 2022
Fourth quarter 2022 Lars Olav Olaussen, CEO Krister A. Pedersen, CFO 9 February 2023 Y KOMPLETT°GROUP
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 ou
Slide 3: Challenging top line, superior position
| Challenging top line, superior position o Market share doubled following the strategic combination with NetOnNet - synergy realisation progressing as planned © Cash flow from operations of NOK 1.1 billion driven by material working capital improvements © Industry-leading cost position maintained a
Slide 4: M&A driven revenue growth offset by weaker market demand
| M&A driven revenue growth offset by weaker market demand co Step-change in revenue base from strategic combination with NetOnNet effective 1 April Operating revenue (NOK million) 2022 4657 © Including NetOnNet pro forma, the Group's revenue decreased by 15 per cent in 04-22 vs 3435 3292 04-21 due
Slide 5: Gross margins trending positively
| Gross margins trending positively o Despite volume decline, the overall gross margin reached its highest quarterly level in 2022 at 12.8 per cent Gross margin ran 13.8% % o Margin improvement supported by successful BT inventory reduction totalling NOK 600 million 12.8% 12.8% 12.8% 12.4% per year-
Slide 6: Strong cost control, EBIT impacted by volume decline
| Strong cost control, EBIT impacted by volume decline © EBIT(adj.)! of NOK 70 million includes: EBIT (adj) we 93 94 o Positive NOK 51 million from NetOnNet 85 70 operations 37 o Industry-leading cost position maintained “10 “10 01 02 03 04 (2021 2022 © 1percent decline in like-for-like operating ex
Slide 7: B2C: Continued weak market, but improved gross margin
B2C Continued weak market, but improved gross margin trend 3403 2224 1674 / © 18 percent pro forma revenue decline due to: ka ra o More conservative consumer spending and 04-19 04-20 04-21 04-22 temporary market saturation following . Revenue @ Gross margin(%) consumption peak Eg o Online share retu
Slide 8: B2B: Lower demand from smaller businesses, resilient gross margin
B2B Lower demand from smaller businesses, resilient gross margin HE S58 413 325 o Lower demand, especially from smaller businesses in the SME segment 04-19 04-20 04-21 04-22 © Gross margin improvement despite net sales Revenue @ Gross margin(%) decline co Relative to the previous quarter, the gross
Slide 9: Distribution
Distribution Market demand impacted by consumer sentiment, improved operating expenses o Anoverall weaker consumer sentiment also impacted demand in the Distribution segment dl © Gross margin impacted by lower growth among Ok) O29 Oa 5 Ore smaller retailers and a less favourable product mix MilReven
Slide 10: Financial performance
| Financial performance Krister Pedersen, CFO @ komptett’cRouP
Slide 11: Profit and loss
| Profit and loss Strong revenue growth was driven by M&A ° NetOnNet consolidated as of 1 April 2022 Revenue decline excluding NetOnNet due to softer markets. However, positive trend in gross margin Strong cost control on operations EBIT reduction mainly driven by a volume decline One-off costs rela
Slide 12: Cash flow & working capital
| Cash flow & working capital © Positive cash flow from operations of NOK 1102 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 o Cash flow under investing activit
Slide 13: Financial position
| Financial position 1434 1333 o Equity issue of net NOK 987 million in 04 to repay the bridge facility 876 o New bank facilities of a total of NOK 1700 million, consisting of a 534 RCF facility of NOK 1300 million and overdraft facility of NOK 400 million 04 2021 04 2022 o |nQ4 each year, the overd
Slide 14: Summary and outlook
| Summary and outlook Lars Olav Olaussen, CEO @ KompPtett’cRouP
Slide 15: Key takeaways
| Key takeaways O° Top line performance hampered by challenging markets, positive trend in gross margin Continued reduction in net operating costs and synergy realisation on track Healthy inventory level following material inventory reduction Full-year operational cash flow of NOK 1.1 billion driven
Slide 16: Outlook
| Outlook o January sales figures indicate that top line decline is continuing 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 © Gross margins trending positively o Gross margin performance is expected
Slide 17: Slide 17
Slide 18: Alternative Performance Measures (APMs)
| Alternative Performance Measures (APMs) The APMsused by Komplett Group are set out below(presented in alphabetical order): EBIT adjusted: Derived from Financial Statemonts as operating result(EBT] excluding one-off costs. The Group has presented this, item becsuse sonsidersit te be auseful measure
Slide 19: Pro forma figures
KOMPLETT’GROUP = net@net Pro forma figures KOMPLETT’GROUP 19
Slide 20: Komplett + NetOnNet pro forma key figures
| Komplett + NetOnNet pro forma key figures Key figures 04 2022 Amounts in NOK milion 04 2022 Operating revenue 4657 Growth (%) 15.5% Gross profit’ 597 Gross margin (%)1 12.8% Operating expenses (ex dep and one-off) (adj.) -452 Depreciation and amortisation -716 Total operating expenses (adj.) -528
Slide 21: Komplett + NetOnNet pro forma key figures
| Komplett + NetOnNet pro forma key figures Key figures YTD 2022 ‘Amounts in NOK milion Operating revenue Growth (%) Gross profit’ Gross margin (%)! Operating expenses (ex dep and one-off) (adj.) Depreciation and amortisation Total operating expenses (adj.) Operating Cost Percentage (adj.)" EBIT (ad
Slide 22: Komplett + NetOnNet pro forma IFRS P&L 2022 Incl IFRS
| Komplett + NetOnNet pro forma IFRS P&L 04 2022 Incl IFRS “Amounts in NOK mition Total operating income Cost of goods sold Employee benefit expenses Depreciation and amortisation expense Other operating expenses Total operating expenses OPERATING RESULT Net finance income and expenses PROFIT BEFORE
Slide 23: Komplett + NetOnNet pro forma IFRS P&L
| Komplett + NetOnNet pro forma IFRS P&L YTD 2022 Incl. IFRS “Amounts in NOK mition Total operating income Cost of goods sold Employee benefit expenses Depreciation and amortisation expense Other operating expenses Total operating expenses OPERATING RESULT Net finance income and expenses PROFIT BEFO
Slide 24: e
e