Slide 1: Third quarter results 2022
Third quarter results 2022 « Lars Olav Olaussen, CEO Krister Pedersen, CFO 25 October 2022 @ KkompPtett’cRouP
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: Highlights for the quarter
Highlights for the quarter: | Challenging consumer markets, mitigating actions implemented o Despite the market decline in recent quarters, Komplett has reached 10 per cent organic revenue CAGR since 2019 o Successful reduction of slow-moving inventory, with pressure on the gross margin o Synergies
Slide 4: Challenging B2C markets partly offset by multi-segment business model
| Challenging B2C markets partly offset by multi-segment business model Revenue growth o Contribution from NetOnNet of drives 39.4 per - 10% organic cent revenue growth CAGR from 2019! o Revenue decline of 15.3 per cent including 3784 NetOnNet pro forma due to challenging market 365 | eS |_| conditi
Slide 5: Gross margins under pressure
| Gross margins under pressure o Weaker markets lead to tougher competition and price pressure driven by high inventory across the industry © Inventory reduced by NOK 426 million YTD! o Successfully reduced slow-moving inventory o Supplier negotiations are yielding the expected synergies from NetOnN
Slide 6: Strong cost control, EBIT hit by lower gross margins
| Strong cost control, EBIT hit by lower gross margins EBIT (adj.) and EBIT margin (adj.)(%)* 83 © Volume decline in B2C and continued pressure on gross margins co Effects from NetOnNet combination include: o NOK12 million EBIT impact from NetOnNet operations © Amortisation of acquired customer valu
Slide 7: B2C: Positioned for long-term growth following current market headwind
B2C Positioned for long-term growth following current market headwind 2528 o Revenue base increased to NOK 2 528 million 11471362, 1481 including contribution from NetOnNet 03-19 03-20 03-21 3-22 o Excluding NetOnNet, revenues declined due to: "Revenues from NetOnNet o More conservative consumer spe
Slide 8: B2B: Modest increase in revenue, profitability impacted by lower gross margins
B2B Modest increase in revenue, profitability impacted by lower gross margins 400 416 © Solid demand from medium-sized enterprises ag $35 offset by softer demand from smaller businesses o Supply issues due to Covid-19 lockdowns in China with major constraints on Apple products 03-19 = «03-20. 03-21
Slide 9: Distribution
Distribution Revenue base holds up well, gross margin hampered by customer and product mix o Revenue amounted to NOK 837 million, representing an increase from 2021, which included major new distribution agreements o Growth was driven by large accounts and strong sales of Apple products, despite sup
Slide 10: Financial performance
Financial performance Krister Pedersen, CFO hs KOMPLETT’GROUP
Slide 11: Profit and loss
| Profit and loss Strong reported revenue growth was driven by M&A ° NetOnNet consolidated as of 1 April 2022 Revenue decline excluding NetOnNet due to softer consumer demand Strong cost control on operations EBIT reduction mainly driven by a volume decline in B2C and continued pressure on gross mar
Slide 12: Cash flow & working capital
| Cash flow & working capital oie mprovedicashiflowitromloperationitromiNOW is Smillion cony BAT TOR TORT Fa in 03 last year to NOK 380 million this year Net cash from operating activities 380 163 542 B 65 co Increased net cash flow from operating activities driven by the successful reduction in net
Slide 13: Financial position
| Financial position Net interest-bearing debt (NIBD) incl. IFRS 16 for the period was NOK 2 853 million compared with NOK 880 million last year NOK 1500 million is related to the bridge facility following the acquisition of NetOnNet, and NOK 593 million from leasing liability. The leasing liability
Slide 14: Summary and outlook
Summary and outlook Lars Olav Olaussen, CEO
Slide 15: Key takeaways
| Key takeaways ° Challenging markets, especially in B2C Mitigating actions have been implemented to: © Maintain cost leadership position co Ensure an attractive inventory position o Secure a healthy balance sheet Supplier negotiations following the combination with NetOnNet are yielding the expecte
Slide 16: Priorities going forward
| Priorities going forward ° Execute integration with NetOnNet o Continue supplier negotiations to extract synergies from NetOnNet combination © Secure long-term refinancing of bridge loan facility Maintain cost leadership position © Cost initiatives with gross impact of SEK 70-90 million launched i
Slide 17: ( KOMPLETT’GROUP
( KOMPLETT’GROUP
Slide 18: Alternative Performance Measures (APMs)
| Alternative Performance Measures (APMs) The APMs used by Komplett Group are set out below(presented in alphabetical order): EBIT adjusted: Derived from Financiel Stetoments as operating rosult(EBIT) oxcluding ono-off costs. Tho Group has presented this itom bocauseit considers it to be ausoful moa
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 03 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 (adj
Slide 21: Komplett + NetOnNet pro forma key figures
| Komplett + NetOnNet pro forma key figures Key figures YTD 2022 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.)"
Slide 22: Komplett + NetOnNet pro forma IFRS P&L
| Komplett + NetOnNet pro forma IFRS P&L Q3 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: ( KOMPLETT’GROUP
( KOMPLETT’GROUP