Torp Computing Group ASA

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INFORMATION MEMORANDUM
Merger of Komplett ASA and Torp Computing Group ASA
• Revenue growth combined with increased efficiency and a solid gross margin
• Geographical expansion into new countries
6.5.2 Business strategy
Komplett’s business strategy is to be the sole link between the manufacturer and the end-user. By
combining this business concept with an efficient operating model based on sales over the Internet,
Komplett is able to operate at a profit even with low margins and is thus able to offer attractive
prices.
Komplett’s growth strategy is based on organic growth, but acquisitions are also considered. The
company believes continued solid organic growth is possible in the near future, especially within
the growing market of e-commerce. Komplett will increase the market size by expanding in new
markets, both in terms of products, customer groups and countries to achieve sufficient growth in
the long run.
Margins are sought enhanced by purchasing directly from manufacturer and increased sales
directly to end-users. The profitability is also sought improved by continued focus on cost efficiency
in the entire value chain. Komplett has had significant growth, but has at the same time invested in
projects both to improve efficiency and customer satisfaction.
Komplett also considers new initiatives continuously where the company is able to use its market
position, as long as synergies can be identified that will improve the profitability.
6.6 Business overview
6.6.1 Products and Services
Komplett offers a variety of products including computer components, PC’s, consumer electronics,
home & leisure products, white goods and related financial services. Komplett actively seeks to
introduce new product categories that are suitable for e-commerce.
Products
Currently Komplett offers some 7,800 different products from its Norwegian warehouse and
approximately 4,000 products from its Dutch warehouse. For example, in 2006, Komplett sold
more than 425,000 memory modules, 108,000 motherboards and 42,000 laptops. Both the market
for and sale of flat screen TVs have expanded rapidly through 2006 and the first half of 2007, and
Komplett also has a large and growing market share in the sale of computer monitors.
In addition to selling regular PCs, the company manufactures PCs in-house and is seeing strong
growth in the sale of these. This has made Komplett the largest independent PC manufacturer in
the Nordic countries.
Consumer financing
Komplett introduced a concept for consumer financing in Norway in November 2005 and Sweden in
Sweden in July 2006, offering customers the opportunity to buy products on credit. Consumer
financing was launched in response to strong demand from customers. Komplett finances the loans
from its own balance sheet. Since start up in November 2005 Consumer Finance has grown to total
loans outstanding of NOK 81 million at the end of June 2007.
6.6.2 Komplett’s business model
Most of Komplett’s products are purchased directly from manufacturers. Over the years, ecommerce
has gained significantly more acceptance among manufacturers and the interest in