Torp Computing Group ASA

KOMPLETT REPORTS 45 PER CENT GROWTH IN 2Q 2007 SALES
Highlights during the quarter:
• Merger negotiations initiated with Torp Computing Group.
• Strong growth in sales: up MNOK 196 (+ 45 per cent) to MNOK 633.
• Komplett.no became the first Norwegian web shop to reach NOK 1 billion in sales!
• Completed acquisition of 98 per cent of inWarehouse AB shares.
• Reduced EBIT owing to the acquisition of inWarehouse, but improved underlying
operations.
• Positive EBIT: MNOK 3.8 for consumer financing.
• New improved design and functionality for the web shops.
Sales and performance
Komplett's sales totalled MNOK 633 (+45 per cent) in 2Q 2007, compared with MNOK 437 in 2Q 2006.
Direct sales to end-users aggregated MNOK 487 (+54 per cent), while sales to dealers added up to
MNOK 146 (+20 per cent). About 42 per cent of the company's sales took place outside Norway in 2Q
2007, as against 29 per cent in 2Q 2006.
The company earned an operating profit of MNOK 13.0 (-18 per cent) during the quarter, compared with
MNOK 15.9 in 2Q 2006. This includes a negative effect of MNOK 6.6 related to inWarehouse, which was
acquired as from May 2007. Disregarding this transaction, the operating profit would have been MNOK
19.6 (+23 per cent).
Earnings before tax (EBT) showed a surplus of MNOK 14.4 (-18 per cent), as against MNOK 17.5 in the
same quarter of 2006.
Komplett owns 98 per cent of the shares in inWarehouse AB of Sweden, and inWarehouse has been
included in the consolidated accounts as from May 2007. Excluding inWarehouse sales, which totalled
MNOK 97 in May and June 2007, Komplett would have had a turnover of MNOK 536 (+ 23 per cent).
Komplett’s operating profit includes MNOK -6.6 related to inWarehouse. The figure consists of a negative
result of MNOK 2.9 in May-June 2007, MNOK 1.2 in depreciation on excess value and MNOK 2.6 in
expenses related to reorganisation/integration.
Even after the acquisition of inWarehouse, Komplett’s financial position remains strong, with liquid assets
aggregating MNOK 54 at end quarter. During the quarter, Komplett spent MNOK 154 on the acquisition
of inWarehouse shares. To further strengthen the company's liquidity, Komplett conducted a share issue
on 9 May 2007, raising MNOK 125 in fresh capital. The cash flow from operations was positive (MNOK 2)
in 2Q.
The lending portfolio for consumer financing expanded from MNOK 76.7 to MNOK 81.0 during the
quarter.
Monthly sales in 2Q 2007 were MNOK 167 (+23 per cent) in April, MNOK 236 (+64 per cent) in May and
MNOK 231 (+45 per cent) in June, compared with the corresponding months of 2006. inWarehouse sales
are included as from May.
Sales and markets
Sales by channel (MNOK) Sales 2Q 2007 Sales 2Q 2006 Change
Direct sales 487.2 315.5 171.7
Sales to dealers 146.3 121.8 24.5
TOTAL 633.5 437.3 196.2
Direct sales increased by MNOK 172 (+54 per cent) to MNOK 487 in 2Q 2007, compared with 2Q 2006.
Sales to dealers in Norway and Sweden increased by MNOK 25 (+20 per cent) to MNOK 146 in 2Q.
Komplett.no managed to become the first Norwegian web shop to achieve a turnover of NOK 1 billion
over the past 12 months.
Sales channels to German, Austrian and French customers through Komplett.de, Komplett.at and
Komplett.fr were opened in 2006 and 2007. Altogether, Komplett's sales were up by MNOK 52 in Norway
and by MNOK 144 in the other geographical markets. 256