Torp Computing Group ASA

19 PER CENT SALES GROWTH FOR KOMPLETT IN 1Q 2007
Highlights during the quarter:
• Strong increase in sales, up MNOK 104 (+ 19 per cent) to MNOK 663
• Sales up 48 per cent in Sweden/Denmark
• Positive EBIT: MNOK 2.3 for consumer financing
• Contribution margin ratio 13.7 per cent
• Warehouse and IT projects on schedule, but increased 1Q expenses
• EBIT of MNOK 20.0 (-7 per cent)
• Acquisition of InWarehouse AB in Sweden for MSEK 173
• Web shop opened in France in January 2007
Sales and performance
Komplett's sales in 1Q 2007 totalled MNOK 663, a rise of 19 per cent compared with MNOK 560 in 1Q
2006. Direct sales to end-users aggregated MNOK 489 (+23 per cent), while sales to dealers came to
MNOK 175 (+8 per cent). 34 per cent of the company's sales took place outside Norway in 1Q 2007, as
against 29 per cent in 1Q 2006.
The company earned an operating profit of MNOK 20.0 (-7 per cent) during the quarter, compared with
MNOK 21.4 in 1Q 2006. Earnings before tax showed a surplus of MNOK 21.7 (-4 per cent), compared
with MNOK 22.7 in the same quarter last year. The slight decline in the profit is because overall operating
expenses were up by MNOK 15.2 (+29 per cent) during the period, i.e. MNOK 5 higher than the salesrelated
increase. This is primarily attributable to the ongoing project to improve warehouse efficiency. For
more details, see Business Development/Operations.
Komplett’s cash position is strong, with liquid assets totalling MNOK 114 at the end of the quarter. The
company has been granted MNOK 150 in operating credit to finance the acquisition of inWarehouse AB.
During the quarter, the lending portfolio for consumer financing increased from MNOK 58.3 to MNOK
76.7. The cash flow from operations was MNOK -18 during the quarter. This is due inter alia to planned
tax payments (MNOK 12) and the warehouse project (MNOK 14).
Monthly sales during the period were MNOK 237 (+13 per cent) in January, MNOK 198 (+15 per cent) in
February and MNOK 229 (+29 per cent) in March 2006, compared with the corresponding months of
2006. Quarterly sales are the second highest in the company's history.
Sales and markets
Sales by channel (MNOK) Sales 1Q 2007 Sales 1Q 2006 Change
Direct sales 488.6 397.8 90.8
Sales to dealers 174.8 161.9 12.9
TOTAL 663.4 559.8 103.6
Direct sales climbed by MNOK 91 (+23%) to MNOK 489 in 1Q, compared with the same quarter of 2006.
Sales to dealers in Norway and Sweden increased by MNOK 13 (+8 per cent) to MNOK 175 in 1Q 2007.
Sales to German, Austrian and French customers through Komplett.de, Komplett.at and Komplett.fr
began in 2006 and 2007. As a whole, Komplett's sales climbed by MNOK 44 in Norway and MNOK 60 in
the other geographical markets.
Sales by geographical area (MNOK) Sales 1Q 2007 Sales 1Q 2006 Change %
Norway 438,8 395,3 43,5 11 %
-Direct sales 269,7 241,2 28,5 12 %
-Sales to dealers 166,0 153,5 12,5 8 %
-Consumer financing 3,1 0,7 2,4 343 %
Sweden/Denmark 148,0 100,2 47,8 48 %
-Direct sales 138,0 91,7 46,3 50 %
-Sales to dealers 8,8 8,5 0,3 4 %
-Consumer financing 1,2 0,0 1,2 n/a
UK/Ireland 57,8 55,0 2,8 5 %
The Netherlands/Belgium 12,5 9,3 3,2 34 %
Germany/Austria/France 6,2 0,0 6,2 n/a
TOTAL 251
663,3 559,8 103,5 19 %