Give our customers freedom and flow in their everyday lives Ko - PowerPoint PPT Presentation

OUR VISION IS TO Give our customers freedom and flow in their everyday lives

Ko Kolonial.no at at a a glanc ance Total revenue per year Actuals Forecast mNOK • Founded 2013 • 220m EUR valuation (‘18) • Founders & Family (35%) Kinnevik (25%) Rasmussen (20%) Rema Norge (7%) 918 801 424 75 13 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3

The Norwegian grocery market is substantial, and has a clear potential for online growth The Norwegian market is large, and has strong online Within online, Kolonial.no has a dominating position growth potential compared to other markets • Kolonial.no cover ~50% of total grocery market • ~200bn NOK market • ~1% online share – well below online share in • ~70-80% market share of online full assortment comparable markets, indicating a strong growth • MENY only incumbent present, and has limited online potential focus Online market share Free picking online groceries Market share 20% 8% 6% 2% ~70-80% 1%

Our P&L show a sustainable business model at scale Operating revenue Above 1bn NOK yearly Aggressive COGS Slightly above peers price level, slightly above Gross profit II Slightly below peers discounters Loss due to spoilage World class Variable fulfilment cost World class Variable distribution cost World class Transaction fees In line with peers Gross Profit III Substantially positive Operative marketing spend Oversized due to growth Gross Profit IIII Positive Fixed operation costs Oversized due to investment in improvement and scale P&T, Commercial, Admin & Finance Oversized due to investment in technology and scale EBITDA Negative 5

World class operations has earned us the right to compete internationally UPH levels • Proprietary technology • World class variable costs 100 • Low capex solutions 2017 2018 2019 2020F

Online groceries has the potential of having a more efficient value chain – and with higher customer value Steps in value chain Est. cost as % of operating revenue Traditional grocery Production Distribution Storage Distribution Store In Store To home 1-2% 2-3% 2-3% 15-30% =20-38% Kolonial.no Production Distribution Picking Distribution To home Kolonial.no has • Time saved : est. 41-61 hours integrated part of the • Supermarket selection production (Korn Bakeri • Superior quality and Netfresh)

We see online grocery as platform to build a new retail infrastructure Core offering: Full Assortment Groceries 1 Recycling Vertical As an integral part of people’s life, online groceries allows for high Services Farming customer frequency and loyalty (more than two orders per month). Combined with a high route density that allows for low marginal Flowers Bakery costs per order, online groceries is a great starting point for a Pet food broader food play Fruits & Category Expansion 2 Vegetables Electronics Owning the online grocery space entails a significant advantage as this gives regular access to peoples’ homes , allowing for expansion Ready Groceries to the Home deeper into food categories, and into categories beyond the core Returns Meals on a Weekly Basis Books & Magazines offering of groceries Fish & Meat Up & Downstream Opportunities 3 Beauty Organic & Exploring new business models up and downstream from the core Pharma Healthy groceries offering is another way to leverage the unique position of Sports Nutrition the online grocer. Adding e.g. ready meals or vertical farming would allow for considerable margin expansion Last-Mile Subscription Delivery Services