Eline Wamstad, and on behalf of Komplett Group, I want to welcome you, both you here in the audience and those following you also on stream, to our Capital Markets Day. This will be the company's first Capital Markets Day since it was listed in 2021, and what an exciting day we have ahead of us. Over the next three hours we will—just putting out the agenda here—we will dive into what comes next for Komplett Group and its different business areas and brands, markets, and growth. Some practical information: after the first two presentations we will have a short break, and then today's Q&A session will be at the end of today's agenda from approximately 11:30 A.M. to 12:00 P.M. Now over to the first speaker. Let me welcome to the floor the CEO of Komplett Group, Jaan Ivar Semlitsch.
He’s the former CEO of Orkla ASA and has an extensive background within retail. In addition, Jaan Ivar also has a strong track record from both Elkjøp and Dixons Carphone. He will introduce the Komplett Group and its strategic platform, financial targets, and value creation plan. Jaan Ivar, the floor is yours.
Thank you so much, Eline. Welcome to this, I want to say cloudy day, rainy day here in Oslo, but that's good for trading, so I'm actually very happy. We have close to 40 participants in the audience. I know some of you very well, so good to see you. Also lots of people following us on the web as well. I'll actually start off with my key four messages, and then we'll dive more into those during the day. Those four messages are the following: First of all, we are the leading online first champion with retail brands loved by our customers. We should never underestimate that strong position, that strong starting point for the Komplett Group. Second, now as we have the necessary scale, we will take out commercial, tech, and cost advantages through our shared backend.
We'll come back to that more during the day. Then we have a very clear organic revenue growth plan for 2018, 2019, 2020, reaching NOK 18 billion of turnover by 2026, and 20+ by 2028. Coming from a base of NOK 15.9 billion today. The good thing is that this is in—we've done within our destiny, our control, and it's not depending on one big bet. It's based on many different growth pockets. And finally, new financial targets of 3%-4% minimum EBIT during the period. Minimum 3% EBIT by 2026, and EBIT 4%+ by 2028. And we'll, of course, come back during the day how we will reach that in detail. Given our huge stock turn and our improvement on the capital efficiency, also improved credit terms as we move forward, we will have a rather high cash conversion, 70% and above.
That leads also to a good return on the invested capital, more than 20%, which you will hear more about during the day. This will also allow us to have stable dividends over time to our shareholders. And before diving into all these details, I would like to say that personally I'm very committed to deliver on these targets, and I really look forward to this journey. But I would like to introduce my team, before moving further in. And they are also very committed. It's a lean team. It's not a huge team. It's taken me approximately 11 months to get the team in place. But now we're here, ready for the growth journey, for the profit journey, for the cash flow journey. It's a good mix of internal and external hires, and with significant management experience. I joined the 10th of February.
I call this the Formula One within retail, so I'm really excited to be back in the industry. Then I have three very experienced MDs, and they have been in previous MD roles before. First of all, Erlend Stefansson. He came into the team first of May. He will be presenting later today. He has an extensive background from Carlsberg, Ringnes, Arcus, strong leadership capabilities, but also a strong analytical mindset, started his career with McKinsey & Company. He was recruited internally, had just been for a year, but leading Ironstone and B2B. Then Josefin Dalum joined us first of December as the MD, having been CFO for a year, internally. Also, previous CEO experience from Moment Group listed on the stock exchange. Very hands-on operator, but at the same time strong leadership capabilities. Then the final piece of the puzzle, Trygve Hillesland.
He joined as a NetOnNet Norway head first of August, but was internally promoted to take on the Webhallen task, actually 17th of January. He will take Webhallen to the next level. He has done the exact job for me in Elkjøp Finland some years ago with great success. He knows how to operate in an international context, and he has 20 years of industry experience within consumer electronics. Started his career as a store manager. He also did a similar job for me in Electroworld in the Czech Republic. Our CFO, Thomas Røkke, joined first of March. Longstanding CFO with an impressive track record. We have different profiles, and I really enjoy that. That's—I think that's important when you have a CEO and a CFO.
He joined most recently from CFO in Saferoad owned by FSN Capital, and that's a company that has done really well. Then Andreas Westgaard, in my view, probably the best commercial director in the industry. He joined the first of August. Has an extensive track record from Sony, from LG, and most recently commercial director from Elkjøp Nordic. So really happy also to have Andreas on board. Komplett has tried to get him on board for several years without success. Yeah. And then finally, Markus Solvik, our M&A strategy officer, been instrumental in the preparation for Capital Markets Day as well. Comes with an extensive background from the Boston Consulting Group, primarily focusing on retail and FMCG. The youngest person in the team. But then we have Kristin, who's not the youngest person in the team, but she's the group HR director.
She was also internally promoted. Been with us for two years. Extensive track record as HR director in Danske Bank, and also Danske Bank markets. And very business-oriented in terms of working with the organization. She's the only person in group HR. We're not a huge HR organization. With that backdrop and that team, I feel very comfortable on this journey. But before moving into the four key messages, just some snapshot of, you know, Komplett Group at a glance, because some of you know NetOnNet very well, or Komplett very well, but perhaps not NetOnNet or Webhallen. We have three business units: NetOnNet, Webhallen, and Komplett Services. Komplett Services: NOK 8.1 billion of turnover, NetOnNet: NOK 6.0 billion of turnover, and Webhallen: NOK 1.8 billion. Three customer segments, B2C being the biggest one, but also B2B and distribution with Itegra, quite sizable as well.
And this gives us many advantages. First of all, from a risk perspective, we have three customer segments, and also from an operating cost perspective. Five brands, and we think there is room for all these five brands. They are very present in the market. They have a strong foothold: NetOnNet, Webhallen, Komplett, Ironstone, and Itegra. And we're focused on three markets: Norway, Sweden, Denmark, but of course, Norway and Sweden being the biggest ones. And rather evenly split. But we do have operations in Denmark through Komplett.dk. Then I would also like to point out that we are pioneers. We are digital pioneers. We have always been challenging the existing. Komplett.no launched their website in 1996. We have Ole Vinje here sitting in the audience who knows all the history. And then NetOnNet and Webhallen followed.
So we have a 25-year anniversary for NetOnNet and Webhallen now in March. We were also the first with private label TVs in NetOnNet early 2000 with the Andersson TVs. And also establishing a China office in 2005, early days. And we will really capitalize on that going forward. Also, AutoStore with Sandefjord, 2007, 2008. State of the art. We get access to everything from AutoStore. And we also have internal competence and internal resources. You will hear more about that from—from Erlend later today. And then Webhallen, the gamification, the loyalty programs, even accepting Bitcoins for transactions. Also been pioneers in—in Webhallen, and you'll hear more from Trygve on that. And then we've also been pioneers in terms of consolidation. Komplett and Webhallen, NetOnNet, SIBA, and now, of course, most recently, NetOnNet and Komplett.
But I'm also proud to be part of a tech company, because I feel that tech is really embedded in our DNA. Many companies talk about tech. We are a tech company. We are an early adopter of AI. Our content translation is now based on AI, so it's for real. We have access to automation and AutoStore in a completely different way than many other operators. We have early access to test partners, for example, Microsoft within Ironstone, but also on the commercial side of the business. And we do a lot around Google Analytics and optimizing our performance. And we have some award-winning digital marketing with real-time profit optimization, making it possible for us to spend less on marketing compared to some of the more traditional incumbents. I'd like to just show you a short video just illustrating the fact that we are digital pioneers.
It was launched internally yesterday. This will be a driving force for our future. It's two minutes and 40 seconds, so bear with us.
What does it take to make something complete? Some believe it's about thinking big. But after almost 30 years of pioneering, we can say for certain making something complete is all about the little things. Like finding that one thing that makes you ready for your next phase, your next expansion, or next Saturday. For us, it's about offering solutions that suit not everyone, but each one. From the cost-conscious to the cost-player. The business owner to the busy family. From Komplett.no to Webhallen and NetOnNet. Our complete offer of products, services, and delivery options is the result of years of pioneering digital retailing. Since 1996, our local brands have constantly developed every little aspect of our business, down to perfecting the logistics and last-minute delivery. In 2007, we introduced a new standard for warehouse technology.
To be honest, a lot of the things we've aimed for must have seemed completely crazy. There's not one reason all of this was made possible. There are thousands. The commitment of every single one of our employees is the reason we're here today. Minute after minute and year after year, they're raising the bar and meeting the ever-rising expectations of tomorrow. Always fine-tuning our customer journey, leveling up our customer care, and crafting our customer club, we are proud to say together we form a complete team with our loyal customers. The result of all these little things is a successful, thriving business delivering a complete product to millions of satisfied customers. Making their life a little bit more complete. Or as we say, Komplett Group.
As you can see, to our competitors, there is room for more logos on this final slide. Okay, moving into why we think we'll deliver on our financial targets. We have a strong strategic platform for further expansion for four reasons. First of all, the market is fundamentally attractive. We are positioned in the fastest-growing online segment. And we have a cost leadership position with a scalable platform. And I think that distance will further improve versus the competitors. And we have retail brands with industry-leading customer satisfaction. So let me start with the first one, the fundamentally attractive market. And you will hear more from this, later, from Andreas as well. But, you know, I said Formula One in retailing, but there is an unprecedented speed of innovation in this industry. And I think we'll see even more going forward as we see artificial intelligence.
We'll see computers have a different layout and different buttons. You'll hear some exciting news about that. I think that will also improve the replacement cycle. During the pandemic, we probably had less innovation, breakthrough innovation. We'll see more of that. Then there are continuous product upgrades with technology improvements. At some point, you have to replace your PC or your TV, or things that, you know, you—you could postpone. Third, we see digitalization of workplaces and everyday life. So from having sold luxury products, now it's a necessity. What can you do without your mobile phone or without your washing machine if it's broken? So it's a different setup than, for example, sports or textiles, where you can postpone most of your buying. Here it's become a day of the everyday life, and the digitalization will continue.
Finally, the lifestyle trends, we can probably capture even more out of that from the Komplett perspective. The society has become more diverse, more gamers on the one hand, more health-conscious on the other hand, but that's just a positive for us. That the segments have become even more distinct because we are online and we can move quickly on those trends. And even so, you can see people doing the running while gaming, which would be perfect. But not only the fundamentals, it's a positive to us. We're also positioned in the segments with the highest recycling, innovation cycle, and replacement cycle. Like PC, like PC components, like mobile, TV, and audio, where we have our strongest foothold. And then the online share will continue to increase. Our online share for the total group is 70%. It will increase.
We're still lagging behind the U.K. and the U.S., although we are a digital country, both in Norway and Sweden. I think it's related also to the fact that Amazon has driven this development abroad. So there's more room for us to grow, online and faster than the incumbents. The incumbents need to focus on downsizing their stores. We will focus on the customer journey. And then I must say we also have a very lean and scalable model with industry-leading OPEX level. This is, sliced in different ways, but these are the facts. Our OPEX percentage is 12%, and the incumbents are around 20%-22%. And also against the pure players, we're doing well. But I think this will continue to improve from our side, although the distance is there. We will further close in the sourcing gap versus the largest competitor.
There is more to go for, and that's the task for Andreas and his team. Second, in an inflationary environment with a big store portfolio, you will meet higher rental costs, higher electricity costs, and, of course, higher salaries. We will also be affected on that, of course, with our 31 stores in NetOnNet and our 12 stores in Webhallen, but not at the same level at all. And we will work on our cost agenda, of course. But the relative position will improve even further. But then, you know, you could say, "Well, we're fine on the cost side. We're fine on the market, and we're fine on our positioning." But it doesn't help if you don't have the customers, and the customers don't like you. But they really love us, by far in the industry.
We have a portfolio of strong B2C and B2B brands: Komplett, NetOnNet, Webhallen, Ironstone, and also Komplett Bedrift, Komplett Företag. They have differentiated positions. There is room for all these brands in the market. But they have something in common: high customer satisfaction, incredibly high, fast and convenient delivery, loyal and engaged customers, the loyalty club, you'll hear more about that both in Webhallen and in NetOnNet and Komplett, and knowledgeable customer service. And some award-winning prices as well. And of course, this is also an opportunity when we work with the suppliers, because there will be a positive connotation between us and the suppliers when they decide to invest. But it's also important to say that we have differentiated positioning in our online-first model, and we're probably differentiating that even more going forward.
As Komplett, a pure online player, we will not have stores in Komplett as we see it now. 100% online sales. Then 45%-50% NetOnNet split between online and offline. And we will do further expansion in NetOnNet in some white spots. And then Webhallen, 12 small box stores, where it will be even more focused on the gaming authority with headphones and accessories and things related to that. So we'll continue the customer journey and be pioneers in challenging the existing. But then we will also, the fact that we have those front-end models also take out the central benefits, the back-end benefits. Our strategy is to maintain separate and autonomous retail brands with differentiated positions. But at the same time, we will realize synergies from centralized functions to build scale and capabilities. And they will be rather focused. It will not be 10 synergy areas.
One, we have established a central commercial team. Andreas joined first of August. His team is fully operating actually tomorrow, first of March. Then his team is alive and operating. So many local resources have now been moved to Andreas's central organization. We're building a shared technology, analytics, and data structure and capabilities. We might have a central digital director over time, but so far we're really sharing best practice on all our tech initiatives. Like AI, like the customer service center, like content translation. Finally, we will build a shared supply chain network, especially on the bigger logistics in Sweden. That's something we'll come back to over time. That allows us to take out further cost advantages, and we have the necessary scale to do so. We have the necessary scale to talk with the right suppliers at the right level.
That's a short pause before I move into the financial targets and our plan to accelerate the value creation. This you have probably seen also from the press release this morning. The NOK 18 billion-NOK 20+ billion, during the period, the EBIT target, and the cash conversion. Let me then explain how to build to the 20+ billion. We have a similar buildup to the 18+ billion. It's really based on several buckets. First of all, we have assumed a normalized market growth of around 2% during the period. Given the fundamentals in the market and the attractiveness, we believe in that growth rate. If the growth rate will be higher, then, of course, our target will be higher as well. That's important to say. Second, we think there is a big potential in home appliances and telecom.
We are really underrepresented in MDA, washing machines, major domestic appliances, and SDA, small domestic appliances. This is about having the right assortment, the right brand, the right logistical setup, the right last-mile delivery, and really have the competence. We do now have the competence in place to really accelerate this. Some of that will be quick wins. Other things will be a clear plan how to achieve it step by step. We see potential in different ways in the different brands. NetOnNet, we can display quite a lot in the stores. In Komplett, you will have the tech-savvy also needing MDA and SDA products.
We could probably have sold much more of, when it's been cold now in January in Norway, sold even more of heating than what we did, probably because we have more potential on both the assortment, the brand, and the pricing. Also, mobile with subscription. We sell quite a lot of mobile phones, but without subscription. And that creates more loyalty. And we are about to find the puzzle in terms of solving that online. We see lots of pure players online in Europe, where the online share, subscription share, is close to 50%. So this is absolutely possible. It's not difficult to sell online. And we will step up in our stores in how we sell subscription in the stores. Webhallen and NetOnNet. This is a journey that we're working on, and I think we have a very good plan in place on that.
It's also important to say that, this requires the competence, but I think we have the competence in place, as I mentioned. Then gaming and gaming-related products, not just the gaming, but the accessories, headphones, everything around it. That market growth will probably be a bit higher than the 2% growth, so we'll have some additional effects there. But also more authority within gaming, both in Webhallen and in Komplett. And we're also rolling out our Komplett PCs now, KPC, in the whole group. So there will be an access to the assortment in a different way than what we have seen before, and we're starting on that journey as well. And then the store network expansion, also totally within our control. You will hear about our NetOnNet expansion in Norway. Alnabru is doing very well. The reopening in Stavanger, which will happen in April.
We have some exciting things coming up in Q4 in a new city. Now, I took all the points from Josefin, but she will be back on more details. There are some white spots in Sweden as well. There is room for both NetOnNet and Komplett. NetOnNet is more taking volume from the traditional competitors and not cannibalizing on Komplett. There are different segments also, as we now distinguish those segments even more. Finally, B2B and Itegra. You will hear also a bit more around that, but there is an expansion into Sweden for B2B and Komplett, which is rather straightforward. Building more on our existing customers and acquiring new customers in Norway in the small to medium-sized segment of companies. We have a fantastic B2B team in Sandefjord. These are some of the building blocks.
On top of that, that will create a road to the 4% EBIT margin. Some of it will just be our cost program, which will continue mitigating costs, but also the fact that we grow organically 5% per year will help on our cost ratio. Then private label and services will contribute to the margin expansion. Not necessarily the growth, but the margin expansion. And you'll hear quite a lot around private label during the day. We have lots of products for you to look at, also during the break. And many of these products are award-winning. So it's good quality, and it comes with a very good margin. And then I would also like to point out the mobile with subscriptions. That's also an important area, which will contribute to the margin uplift. Selling a mobile phone with subscription is completely different than selling without.
Then MDA, SDA, that comes with a higher margin than the average margin. A washing machine is probably the product with the highest margin in the industry. And it's really easy to sell online. 60 by 60 inches. So that's a bit of the backdrop, and Thomas will also come back to the cash conversion during the presentation and also the return on invested capital and how that is also very attractive in our industry. Not just looking at the EBIT percentage, but also the cash conversion and the return on invested capital. So with those words, I think we're okay on time. I would like to hand over to Andreas—and that will be quite exciting. I'll just briefly touch upon our ESG targets on this. And we have made this rather simple. We have focused on three areas: our circular business model.
We will have 15% of group revenues from circular products and services by 2028. From a sustainability point of view, but also it's profitable. We have approximately 4% of the share today, and we see that the trade-in will create more loyal customers. And also, it will also provide, help us selling new products as we can do the trade-in. And we will solve this also online in addition to the store setup. Then we would like to be climate neutral, net zero by 2040. I'm probably not the CEO of then, so we have also put on the 2030 targets. And we have said a reduction of 42% Scope one and 2. And we will have a roadmap for how to achieve that, measuring that from now on and towards 2030.
And finally, which is very important, not just in general, but in retailing, we'll be an attractive and inclusive employer. And the two KPIs we will measure. The first one is what we call the industry-leading employee temperature, which is a standard in the industry talking about how engaged are your employees. And during 2022, we were below. Now we are on average. And for next year and the years ahead, we'll be the leading, having the leading KPI. And then we'll have gender balance in leadership positions. So the average indicator is 77 in the industry, and we'll aim for at least 82 in a medium-term perspective. And then the share of female leaders today in Komplett, it's 32%. We will, in a short-term ambition, reach 40% and over time have gender balance. And whether that's 50/50 or 55/45, 45/55, doesn't matter, but we'll have gender balance.
When I was the CEO of Orkla, over the three years, we took this from 37%-44% with great positive results on all dimensions. So this is absolutely possible. It's a male-dominated industry, has been traditionally, and I'll put extra focus on this going forward. To sum up, five pillars lay the foundation for our corporate strategy. We will nurture unique and differentiated retail brands, which are loved by our customers. Second, we'll remain online-first with speed, convenience, and leading technology as key components of our offering. And third, we'll utilize our scale to create cost and capability advantages. And as I mentioned, across commercial, supply chain, and digital functions, being very focused on those three areas. And we'll maintain a leading efficiency and operating cost position. And I will also improve this even more going forward based on what I also described earlier today.
And then we will be a driving force for sustainable development. And I think also we'd add sustainable and profitable development. We think this could go hand in hand. So with that introduction, I hope you're not too bored. We will hand over to Andreas, who will talk about how we leverage our commercial platform.
Thank you very much, Jaan Semlitsch. Good morning to you all. Great pleasure to meet you. So I've been in this industry for 30 years, or so. And I think this is probably the most exciting time ever. And we had a good ride during COVID in terms of sales, but innovation was not, you know, very high on the minds of our suppliers. So what we see right now is that we get a catch-up. So there's a lot of innovation coming right now a nd I think it's a really positive thing for us as an industry, so I'm really optimistic. In addition, we have a much larger installed base right now. And as Jaan Semlitsch said, the products, they play a critical role in everyone's lives.
And I am sure everyone here who has a teenager knows that they would rather lose a limb than their phone. So I think that's also a good thing for us in this. And we capitalize on innovation. And innovation in our industry is driven by the strongest brands in the world. And you may see strong brands here. When I look at this chart, I see business associates that we've been working with over many, many years. And I see product lineups and products that are to come. We know that there's a lot of innovation happening right now, and there's a lot of great products being brought to the market that will continue to drive growth in our sector.
This slide is actually going to get me into trouble, not by these players, but by the ones who's not here. So it's an extensive brand portfolio that we work with, and all brands have true innovation coming. So I summarized some of the drivers on my next slide, and here you have some of the exciting trends that will continue to expand the market. Some of these are new. Some of them have been around for some time. The first one is connectivity and IoT, basically the universal smart products. Everyone recognizes now that the product comes with an app, and you can control it through your phone. What will happen in the future is that these products will connect to each other across the different brands.
So this is going to continue to drive our market into new segments, which is a good thing for us. Then home entertainment. And I—I say it's a comeback for home entertainment. I think COVID, in many ways, killed the cinema. And right now we see that, you know, big screens and home entertainment systems are really, really coming back into people's homes. And actually, the Drive to Survive Season six, that was released last week is bigger than any cinema in the cinemas this year. Maybe with the exception of James Bond or something like that, but it's really, really massive. I'm absolutely sure that every one of us here has a kind of a hidden, secret little show, that we—that we enjoy, watching.
The kitchen counter is a new area where we see the insurgence of a lot of new high-tech products, automatic coffee machines, blenders, juicers, air fryers, etc. So in this segment, there's a continuous development of new products, and it's also catching a lot of the important trends in society like health. Robots, great products. They are taking care of our grass and cleaning our homes. And the inventor of dust is a genius because it's a never-ending supply of dust. So this is also a very good thing for us. On the bottom half, you see some other segments. AR and VR. That's not a new technology, but actually, Apple moving into this space is a massive thing. So Apple is always serious about products that they launch. We also the news that they pulled out of a car yesterday.
But when they put something on the market, they're serious about this. We expect a lot from AR and VR going forward, both through computing, but also as an entertainment device. Screens are very important for us. Right now, there's a real battle between the Chinese and the Koreans on the screen front. The Chinese are going very heavily into big screens and are having, you know, real cheap panels in these segments, while the Koreans are focusing on developing the technology. So OLED, 8K, and also Samsung has announced the next generation of screens, which is micro-LED. So that's very good news for us. Micro-LED is not going to be your next TV, but it's going to be your next TV.
So we see this as a future technology, and it's going to be absolutely wonderful because then we're talking about the perfect picture, actually, for the first time ever. So really looking forward to this. We also see screen technology taking new form factors, foldables, bendables, both on phones and PCs. So this is also going to drive the interest and also the innovation in a lot of the key segments that we work with. So this is good. Fitness and health. Brilliant technologies coming in, and everyone is now very health and fitness conscious. Samsung released yesterday their new ring or more details about their ring. So everyone is coming into this segment, and it's a good thing for us as well that our strong partner brands are developing this area. And last but not least, the big talk of the town, AI.
All our suppliers are talking about AI. Not all of them super clear about what it actually means in terms of product and benefit, but it's definitely going to have a tremendous impact on our industry. The first two products where we're going to see this is the smartphone. It's already happening. This product is always connected, and it's very easy to utilize AI technology on this product. The next one is the PC. And Microsoft is doing their first change on the keyboard for 30 years. So first time in 30 years, they're actually changing their keyboard. They have a Copilot button on the PCs going forward where you can get direct access to AI functionality. And this is massive. It's not just cloud-based. It's also on-device. So this is going to have a completely new requirement on hardware. So there's a huge upgrade happening in the PC area.
It's going to trickle out in the market in Q3, Q4, so small launches during this year, but mass market penetration in 2025. So that's when we see it's really hitting the mass market. So that's very, very, very strong. Good. So I think the future is relatively bright, and we have a good starting point. So our revenue is NOK 16 billion, and that's big enough for us to be super relevant to all our partner brands and all the suppliers. It's also big enough for us to get the best terms. We are online-first, and that's a huge benefit for us because, basically, we are faster to the market, and we don't have a large portfolio of legacy stores that takes down the speed. So this is a good thing. We are lean and efficient.
When we have resilience through our low cost to serve, we expect that margins in our industry are going to be under pressure going forward as well. This is probably not the room where I need to tell you about the importance of having a low OPEX, but it's a very good starting point for us as well, and it's a very important part of our strategy going forward. We have a fortified position within many of our segments, which is quite hard for our competitors to take. We are very strong in segments that are relatively hard to get our hands on, like components and gaming, etc. These are positions that are fortified within our store portfolio, and that's good. In addition to this, we have some real strength across the group, and we are going to expand these core strengths very, very fast.
And these are some of them, and the most important maybe, the first one being private label, which is extremely important for us. It contributes a lot on the gross margin side. We have twice the margin versus our partner brands. And in addition, it gives us very, very important insight into the industry because we are going straight to the source. Then we have in-house PC production, like Jaan Semlitsch said, Komplett PC or SIPC, System Integration PC. We are actually the clear number one in the Nordics in terms of making our own PCs. So we will, in 2024, make more than 50,000 PCs in our Sunnfjord warehouse. And that's massive, 50,000 PCs. That's actually going to make us top three in Europe in this segment. And we are currently doing this for Komplett.
We are going to fire up on two more cylinders and take these products into NetOnNet and also Webhallen. So this is a great stronghold for us. Then we have strong and recognized leasing and financing solutions. You probably heard about Komplett Flex. I absolutely love this concept. It is just brilliant because it gives the users that usership feeling. They have the product for 24 months, and then they can either hand it back and trade it up or continue and pay it completely off. And more than 10% of our B2C revenue right now in Komplett is done through Flex. And Erlend is going to talk more about this in his presentation as well. And then, as Jaan Semlitsch said, we have a significant business-to-business operation and also a distribution business. And this gives us a good balance in the business and also a strong resilience.
So a lot of these elements are going to be picked up later. I will spend a few more minutes on private label, and I'm going to start with a movie. Good. So for us, private label is absolutely not about cheap products. It is all about having products with an undisputed value-for-money position. So we do this to make more money. And we are not just putting labels on products. We are actually developing categories. And I'll show you two examples to explain what I mean with that. It's a very fresh and Scandinavian feel to it. It is developed for the personal care and the well-being segment. And potentially also, if we go into air purification, for instance, this is a brand that we are going to use.
But here you see how we develop a brand, and then we put it on different products across different categories that basically resonate on the same values to the customers. The next one is an example from the completely other end of the spectrum with Austin & BBQ. So Austin & BBQ is a full-range barbecue brand, including outdoor kitchen and accessories. And it has this much stronger, rugged feel to it. And it is absolutely fitting the market. There's a clear number one brand in barbecue that's Weber. These products fit like a glove next to Weber because they complement the range perfectly. So we are a great partner of Weber, and we're going to be that continuing going forward. Really good supplier for us. And Austin & BBQ is a different brand that really complements the Weber lineup.
So this is also a segment where there are very few good alternatives outside of the market leader. And we are actually selling this brand outside of our store portfolio as well. So it's so good that even other players are now buying this from us. And this is also something that we are going to continue doing going forward, utilizing our private label capabilities also and to expand into other areas. So as you can see, we have 17 different private label brands. All of them have a role to play within certain segments, and nothing is coincidental when it comes to these. And we are going to continue building categories. And as Jaan Semlitsch said, we are getting great reviews and winning awards for our products. And we're very proud of our private label portfolio. We started very early on TVs.
We actually now put our 2 millionth TV on the Nordic market under private label brand. So more than 2 million TVs have we put onto the market. We are so confident about this product that we have actually now introduced a 10-year warranty on the Andersson TVs in the market. And that's undisputed. And it's one of the strengths that we have doing private label. We are so confident about the products and the quality that it's no problem for us to do this. Great. And now, as Jaan Semlitsch said, we are going live with our centralized commercial team tomorrow. And basically, what this means is that we are going from a localized commercial team with a local focus point to a group-central team that takes responsibility and end-to-end responsibility on behalf of all the retail brands. And this is the only right setup to have.
First of all, it's a very scalable setup. It's also the only setup that works well with a supplier base because the suppliers have been centralized Nordic for many, many years. So if you don't have a centralized commercial team, you're basically speaking to the wrong people around the wrong table in the wrong room. That's going to change right now. That's good. This is a fully empowered senior team. I expect some clear benefits from this. First of all, we are going to reduce the complexity around the business. It's too complex as it is right now, too many different products, too many different strategies. We are going to realize higher gross margins because we are going to be tougher when we negotiate and have a harmonized commercial strategy that we will execute on. We are going to improve the payment terms.
When I started in August, I had a review of the payment terms that was in the group, and some of them were honestly saying ridiculous. So this is being addressed right now, and we're going to have significant improvements in this area. Then we are going to get access to brands and products that were previously not available for the group. And this is also very important. The customers are very enlightened, so it's important for us to have the right selection of products and the right selection of brands present towards the customers. And that's going to be fixed also right now. And last but not least, we are also going to have a much better commercial execution in terms of campaign management, range introductions, range exits, etc., and all these nitty-gritty details of operating a commercial department. That's also going to improve.
So we have divided the business into four different sizable categories. It is computing and gaming, consumer electronics, telecom and wearables, and home appliances. And these are all distinct categories with very little overlap from the supplier base and also from the customer base. So we're looking at basket analytics, etc. And we see this is a very sound setup in terms of how to divide the business. And it's also different drivers. So this also diversifies the portfolio. So we will always have some of these segments having more traction in the market than other segments. Now, if you look at where we are strong, we definitely have our stronghold in the two first segments, computing and gaming and consumer electronics. This is where we are over-indexing versus our relative market share. While on the last two, telecom and wearables and home appliances, we under-index.
So this is where we are going to keep focusing to take more market share and develop new ranges and offerings within these segments. So it's a huge upside for us. And it's relatively easy. It's much easier to go from where we're strong today into telecom and wearables and appliances than going the other way around. So if you're really strong on major domestic appliances, you want to be strong in computer components. Good luck with that. It's very hard. But right now, there's a tech wave across the industry. So for us to move the business into this direction is much easier. And it's sizable markets. If you look at the market size, we have on telecom and wearables alone, in Norway, Sweden, it's NOK 37 billion in revenue, and home appliances, NOK 30 billion. So it's really, really a big piece that we are going for.
So this is the strategy. So you stand up. Maybe I'm on time. It's always a hint. So we have a good starting point. Just to take the key takeaways, we have a good starting point. We have a very strong platform and significant scale and also good balance in channels and segments. We do offer some real value to our suppliers, and we have great relationships with our suppliers. I would say unmatched relationships with the suppliers. We have some real core strengths that we will roll out across the group, private label, SIPC, two examples. Flex is another one, and also B2B and distribution, which was the ones I talked about. We have a new and fully empowered commercial team, and we're going live tomorrow, actually. So it's a big day for us tomorrow.
Then we have some clear strongholds, but also adjacent categories with significant headroom to grow. So we will work very, very hard every day to improve our position. I truly believe in the effect of accumulating advantage over time. So I'm really confident. Good. Thank you all very much.
Thank you, Andreas. Thank you, Jaan Semlitsch. Let's hold on to this energy when we return for the next section. Now we will have a short break and reconvene at approximately 10:15 A.M. For those following our stream, please return to your screen at 10:15 A.M. Thank you.
Hello everyone. I'm Thomas, I'm the child with stretcher legs. For those of you here who perhaps enjoyed the venue with the gaming facilities, we are moving over to the next section. Now we will take a look at a complete portfolio of strong, unique, and local brands. First out, I have the pleasure of welcoming Josefin Dalum to the stage. She has been the MD of NetOnNet since December last year and was recruited internally from a role as CFO in the same company. Josefin will talk more about why customers love NetOnNet and how they will expand their omnichannel concept into both Sweden and Norway going forward.
Thank you, Eline. Hi. First, I would like you to—I would like to present to you the newest member in the Norwegian NetOnNet family. Maybe you heard it already. We are very glad to have Petter in the family, and he's an icon and a rebel, just like us, challenging more established players. Something I will talk more about. So, NetOnNet's mission is simple and clear, and it's to make electronics available to everyone as easily, affordably, and sustainably as possible. This is also reflected in why customers say they love us.
It's because we are known to have the best prices in the market. It's simple and convenient to do the purchase, and no matter what channel you meet us in, it's a seamless omni-experience. On top of that, they really appreciate the fast deliveries. NetOnNet has a robust culture that is built on the core values: simple, curious, action-oriented, and together. These values guide everything we do as we continue to develop a strong brand appreciated both by employees and customers. We are constantly challenging ourselves to bring offerings to the market that align even more closely with the changing needs of the customers. In this, we also have always had a great focus on scalability and efficiency. NetOnNet opened its stores in 1999 with a simple business ID, and it was to sell consumer electronics at a lower price than traditional stores.
Operating exclusively online, we offered products directly from the warehouse shelves, eliminating all unnecessary complications. Two years later, our online sales were complemented by stores, warehouse stores, or as we call it, lager shops. This was because the customers wanted the ability to pick up the goods at the central warehouse in Borås, which was not possible in the store format. So, we opened the first lager shop, and now we have another 30 in the market. NetOnNet now has a revenue of SEK 6 billion and approximately 900 employees. And we still see great potential in further enlarging the store network since we know that offline presence, also with our model, also gains the online sales. NetOnNet owns the low-price position in Sweden, and it's after the market leader, second top of mind.
In both our markets, we are highest ranked by customers among our peers, which is crucial to succeed in the market. We also have a large customer club with 1.8 million members. The unique aspect of NetOnNet's Lagershop lies in the emphasis on simplicity, transparency, and customer centricity. Unlike traditional retail models, NetOnNet's Lagershop operate as an extension of the online presence, offering customers the opportunity to shop directly from the warehouse shelves, but also to give the customer services within aftermarket, for example. We know that the majority of customer journeys start online, and the self-service concept simplifies the physical experience for customers. We aim to make the process of purchasing consumer electronics easy and efficient, and self-service is therefore something that permits everything we do in the warehouse shops.
Both the information seeking, guidance, as well as the service level, which leaves the personnel to focus on guiding and enhancing the customer experience. Lagershop is also functioning as extended warehouse hubs, strengthening the last-mile deliveries, and seamlessly integrating the aftermarket and the omnichannel experience, such as services, guarantees, and other errands the customers might have. The last-mile deliveries are enhanced also through click-and-collect opportunities, but also sent from store, which makes it possible for us to deliver within the same day in 67% of Sweden and within 24 hours in 90% of Sweden. Lagershop is our delivery signifying warehouse feel and look and low cost, enhancing the low-price position, but also making it possible to grow organically with lower capital requirements. So, NetOnNet's Lagershop concept could be likened to the IKEA of consumer electronics.
We are not aiming for a large store network, but an optimized one to be where the customer needs us when they need us. At NetOnNet, a digital first is not a technique, but a mindset. And awards such as Best Omnichannel Experience provide external validation confirming our commitment to delivering a superior integrated customer journey. At the same time, awards for Best Services and Ecom sites give us proof that the digital first mindset is valuable also for our customers. We also see that the actions in the Norwegian market are starting to pay off in these kinds of rankings. As Andreas earlier said, we were early out with opening the Chinese office, and one of NetOnNet's strengths lies within the private label offering. With top-ranked, award-winning products, the reviews and awards showcase their relevance and competitiveness in the market.
Private label products serve as key components in our brand and assortment strategy and have an important role, both functioning as entry-level products, but also play an important role in the mid-level segment. The entry-level products also strengthen the position as a low-cost provider, reinforcing the perception of affordability and value for the customers. The strategic integration of private label products varies by category, allowing us to tailor the assortment based on customer preferences and the market demands. The private label product range is also a good way for us to work with circularity initiatives such as repairability and spare parts to enhance the product life cycles. In summary, private label offering is not only resulting in award-winning products, but also plays a crucial role in the brand and assortment strategy for NetOnNet.
As I said earlier, we have a large customer club, and during recent years, we had a rapid growth up to today's 1.8 million members. The growth is a good indicator that the loyalty program actually creates value for the customers. Loyalty club accounts for approximately 60% of the sales in total and 70% of the sales in store, while the stores also are a good recruiting base for new members. We know that the club members shop more often and to a higher average order value than non-members do. We see the significant membership base as a source for market insights, and it helps us conduct marketing research and gather valuable feedback from the customers. It also allows us, of course, to communicate directly with the most valuable customers. So, now over to some of the most important initiatives going forward for NetOnNet.
With a digital first mindset, tech initiatives are central in everything we do. We have a stack with a mix of best-of-breed and own development, which secures a superior and seamless omnichannel experience. For us, a scalable and up-to-date tech platform to support a unified commerce landscape is key. To seamlessly integrate this also into Lagershop is equally important. This is also why we are lifting the e-commerce platform during 2024 and to enable continuous development in a modern technique. At NetOnNet, we see great potential for our concept here in the Norwegian market, and during coming years, we will double the market share in Norway. Lagershop and opening those will be important in this journey. And first out is Stavanger in April, as Jaan Ivar said. And we are at the moment looking closely at a new location, one very likely to open during Q4.
This, together with more active go-to-market, will also increase online sales. And one initiative is the collaboration you heard earlier with Petter Northug. Because NetOnNet has a good reputation in Norway, but is not that well known. So we know that there lies a great potential in increasing the top of mind and awareness of the brand. One of our challenges in Norway, historically, has been the availability and access to relevant assortment and SKUs in a market with a relatively small volume. This is something we see rapidly changing with Andreas' team and access to new brands via the Komplett Group. As I said earlier, we see great potential in further enlarging the store network, also in Sweden, in what we call the white spots. This is spots where we are under-indexed against a relative share in the market.
Continuous growth through establishing in these white spots will increase sales volume, both offline, but it also spills over to the online sales in the region. Today, we are under-established with physical stores in part of the Swedish market, and we have a strong market share online, but in some regions, not that good presence offline. So we know that we have the ability through this establishment to also continue the growth journey in the online sales. Private label expansion then. And as Andreas earlier said, the private label offering is within the DNA of NetOnNet and is very important for our brand. And we will continue to optimize each category in terms of private label share and assortment to double the private label share during the coming years. In the categories where brand preference is lower, there is a good possibility for growth.
And the growth will be relevant in all categories, increasing both range and assortment, depending on which, and also profitability in the segment. We have touched the home appliances and subscriptions earlier in the presentation. And as earlier said, we see as a group great potential in these segments. We have major domestic appliances in half of the lager shops today, but more as a test of concept and with rather small volumes, something we see a great potential in scaling up rather quickly because we have all the solutions and infrastructure in place to actually do it. To build that journey further, we, of course, need to do it as a group. And that is something we will come back to. In that segment, we are aiming for a fair share in the market, as I said earlier, also with the presence in the lager shops.
Within telecom hardware, NetOnNet has a good business today, but we see great potential in the subscription. As a business, we know this can give us volume with the right operator. And last but not least, resizing and efficiency. In everything we do, we are a cost-efficient and cost-aware company. And one of NetOnNet's strengths has also always been to focus on this parallel to the other things and to secure a low OPEX percentage. To constantly search for optimization in that cost base and develop efficient processes going forward will be key to continue a low-cost brand journey. At the moment, we are taking actions to address cost base in a tough market, but also developing initiatives to be more efficient. An example of that is the AI tool released in January, which helps us with all product content production, also translation and descriptions of SKUs online.
So, this all sums up where we are in the business, and it's to make electronics available for everyone as easy, affordably, and sustainably as possible. Thank you.
Thank you, Sofie, for sharing what lies ahead for NetOnNet. Next up, I have the pleasure of introducing our next speaker, Trygve Hillesland. He took on the position as MD at Webhallen in January this year and was also recruited internally from a former position as country manager for NetOnNet Norway, where he joined August last year. With more than 20 years of experience from the electronics retail industry, mainly Elkjøp, Trygve will share insight on how they work in Webhallen to improve profitability while remaining the favorite go-to place for gaming enthusiasts.
Thank you, Eline. So hi everyone. I've been in Webhallen for a month now, and my first reflection is that we have highly dedicated and motivated staff, but maybe missing a little bit on the commercial touch. I will say in Norwegian, it's kremmerskap varetrykk. Didn't find any good English words for those, but you know what I mean. I've been working 20 years in Elkjøp, as mentioned, and I think if I combine that with all the great things that Webhallen do, we're going to turn Webhallen around and be profitable again. I will start off by showing a movie. We are celebrating 25 years anniversary this year, and we're going to have great offers coming out already from the 6th of March. So this was the short version. There is also a two-minute version going out on YouTube and Twitch.
We're also going to be on TV4 Play in Sweden. We don't have a Petter Nordtug yet, but we're also looking into working with influencers as we also need to build the Webhallen brand. We are really well known in the big cities as Stockholm and Gothenburg, where most of our customers are, but we're not that well known in the rest of Sweden, actually. So that's something we're going to work on. So if you look at Webhallen in short, it's SEK 1.9 billion in revenue divided 70% online, 30% in stores. Then we include click and collect in the online numbers. We have 12 stores at the moment. We have closed five stores recently. The reason for that is that they're not being profitable, and not the location that we want to be in the future.
We might open new stores again in the future if the location is right and the price is right. Our members' loyalty club, member club, is over 900,000 members, and we have a really special, members' club where gamification is a big part of it. I'll come back to that. We also have been awarded the best gaming retailer six years in a row by Pricerunner, and we're going to continue winning that prize year by year. We have great ratings from our customers, both on Prisjakt where we will soon reach 4.6, actually, and we have an average NPS on 72 on our online business, which is considered to be an excellent score. So our loyalty club, we were first out with this type of loyalty club. Now more have copied us, but I think still we have the best. You can do achievements, up to 900 of them.
And to reach the highest level, which is level 25, you need to do 750 achievements. There is a lot of people putting a lot of effort into this to reach that level, but it's really, really difficult. We only have four people reaching the level legend, which is level 25. Actually, that happened two weeks ago, and that person was going to come to our back office. We had a cake for him. We're going to celebrate. Then he calls us that his wife is going into labor, and he was really sorry that he had to prioritize that. We totally understand that he had to do that, of course. We are really quick with product launches. iPhone 15, we were first to have it online in Sweden. We are also quick on the market with delivery.
We can deliver in Stockholm with same-day delivery, whole Stockholm, same-day delivery, which really, really is an advantage for us. We do events for product launches, mostly when there is a big game release. As an example, when it was the last big Nintendo release, we had 500 people queuing outside with midnight, and then we had our store open until 1:00 A.M. and everyone got the new Zelda game from Nintendo. And then people actually dress out in costumes and things. So this is kind of our loyal customers who really love us that come to these kinds of events. We even have people commenting on products not yet released on our websites, creating hypes. And our high street store concept is something that is unique for us, as most of our competitors have big boxes out of the city.
So we have a full assortment in the streets of Stockholm and Gothenburg, where people can get their product really, really quickly. Our partnership with Space is a partnership where they have 450 of our Webhallen config PCs. Space, for those of you who don't know that, is the biggest gaming venue in Europe, located in Stockholm. It's a place where people come and game together with your friends. So basically, you can rent a computer for one hour, two hours, or three hours, and then play against your friends. Or you can play online, of course, as well. And then we have the Webhallen config. Webhallen config is equivalent to the KPC, as mentioned. So the Komplett PC. So Komplett are actually building those PCs for us in Sunnfjord, and then they're shipping it to Sweden.
So it's a pre-configured PC that we're selling a lot of, and it was the most selling desktop in Sweden in Q4. We can also, at our website, build your own PC, pick the components that you want, and we will put it together for you, which we also see is a very growing business. So our core categories moving forward will be everything within gaming. We want to increase our assortment even more with laptop, desktops, Webhallen Config PCs, everything in components. And, of course, if you have all the accessories around it, the VR glasses, the consoles, and also monitors is a big part of our business. And highly connected to this is the headphones. Headphones is, of course, used a lot in gaming, but also very connected to our smartphones, which is another one of our core categories.
We sell a lot of phones, but we need to work on selling more subscriptions, as also mentioned by others here earlier. So we are looking into how to sell more subscriptions. We have some partners there, but we'll maybe be looking to have even more partners with operators. In the category toys and gadgets, it's the biggest product there is the Lego. We are really big on Lego, and we see that the category for grown-up Lego is increasing a lot. Those big packages with 10,000 pieces could be Ferrari or could be New York or build these kinds of big things. That's sales are increasing rapidly. We also have a lot of sales within everything within gaming cards, Pokémon, and also the board games is really, really popular. When it comes to our stores, we want to be more centered around these core categories.
I just mentioned not to show too much SDA in our store, to have more like a DNA around the gaming in our stores, while we will have an extended assortment online. So online, we will also have the SD products, so the small domestic appliances, and also TVs. We are quite a large player on TV, but since we have small high street locations, we don't have place for a massive TV display there, but we have most of our TVs in range in the warehouse. So you can still pick up a TV if you're in the city. There will, of course, be space for suppliers in our stores, and we want to have a wider assortment of accessories in our stores.
We are working on that already, putting in private label brands like Andersson into our stores, filling up our stores with much more accessories than earlier. This will also help us increase our margin. We have our trusted sales advisors. We have really skilled sales advisors. And actually, I was in Täby yesterday in our shopping center. There we have a store. And then I was walking around the center with the store manager, and we entered the Telenor store, and I told him that we were from Webhallen, just checking out competition. And he said to me, "Oh, wow, Webhallen. I love Webhallen. I shopped there yesterday." And then he described the person he shopped from.
He said, "You have to give great feedback to this guy because he helped me so much and he was so knowledgeable." I also experienced something myself when I was listening into the customer care center the other day. We had an angry or disappointed customer calling in. A lot of things had gone wrong. But then Andreas, which his name was, turned around this customer. So it went from an angry customer, and you can hear the customer smiling on the phone when we were finished with the call. So it's it's about taking care of the customers. They will come again and again to shop in our stores and online. So, and to increase our margin, we need to work with margin initiatives. Telecom subscription is a big part of that.
We should be able to attach 50% on all the phones that we sell, not from the start, but that should be the long-term goal. And then also work on other services like insurance and to attach shield to mobile phones in stores. We have a new financing service partner with Resurs Bank where we can sell monthly payments. And we are focusing, as I said, on accessories to build, and then especially private label accessories with high margin. Also, private label in general, we will increase our range, everything inside gaming accessories. We also have private label assortment and also a lot of products within SDA that we will have online. Always right price. So how is the price going to increase the margin? Well, it's important to price both up and down. So now we have a price engine monitoring the market 24/7, following the competitors closely.
So we are following the market if it goes down, but we're also following the market if it goes up. So having the right price is also crucial to have the revenue, of course. When it comes to the cost, it's a tough market, and we have to make sure that our cost base is low enough. So we have decreased our store network from 17 to 12 stores, making us actually more profitable as those stores lost money. We are looking into the hours of work in store. So we are doing a task where we monitor how many customers come into our store every hour. What is the revenue per hour per store and streamlining the hours in store on that, and also looking into optimizing the back office operation, looking for how can we be leaner there?
So to sum it up, our strategic priorities moving forward is to focus more on the core categories: gaming, headphones, mobile with subscription, and toys and gadgets with extended range online. In the store, we need to have the correct assortment with the core categories, and we need to work on the margin initiatives, focusing on subscriptions, finance, insurance, accessories, and other services. And as I said, it's a challenging market. So we also need to look at the OPEX. We are known for having a good OPEX, but we need to work on that even harder to be even competitive in the future. Thank you very much.
Thank you, Trygve, for bringing the gaming destination a little bit closer to us in the audience. Next up, we will hear from the MD of Komplett Services in May last year, Erlend Stefansson. He has been the CEO of Ironstone, and in addition, he has an extensive senior management experience from both Arcus and Ringnes. Today, he will present their ambition to further develop the online electronics specialist Komplett, grow the services and subscription offering, and expand their B2B offering. Erlend, the floor is yours.
Thank you very much, Selena. Thank you. I will start up showing really the core of Komplett. I will show you a few commercials. You might have seen them before. They are combining our tech, where we come from, fast delivery, and unrivaled customer satisfaction. Oversiktlig og greit. Gratis frakt på denne jeg kjøpte. Komplett.no. Another one. Also, running these days in Sweden. Gaming-PC fra Komplett, Anette? Dette fantastisk side. Jeg Jättenöjd. And these are actual reviews from Prisjakt. There are 13,000 reviews of Komplett, and 98% are positive, with five stars.
I'll come back to a little bit on that. Komplett has been an e-commerce pioneer since 1996. We've done a lot of acquisitions, a lot of trying new things. Not all have been successful, as many of you know, but we are continuing. We believe in the entrepreneurship. We believe in the pioneering, and we will continue that going forward. Currently, Komplett Services consists of three consumer stores, which are here under Komplett B2C, and they are in Norway, Sweden, and Denmark. We have the B2B online stores with Komplett Företag in Sweden and Komplett Bedrift in Norway. We have Itegra on the right-hand side. Not to not to forget, it's the distribution leg of our business, very important, with online stores in Norway and also in Sweden. And then the newest, Ironstone, delivering managed IT cloud services to SMB customers, operating in Norway and also in Sweden.
We are a total of 360 employees with a turnover of NOK 8.1 billion, so approximately 50% of the group, and all share the same common infrastructure, headquartered in Sunnfjord. So our core segments, we come from a tech. We come also from desktop gaming, as we've talked about earlier, and we are pure online. So we are for consumers and businesses open to buy online. Online is growing, as Jaan mentioned, and we do believe it's going to grow more in the future. So we are online only, no stores. We have a pickup store or a pickup point, sorry, in Sunnfjord and in Oslo, but we have no plans of extending this. We'll see later, if there are combinations in the group, but still. We have a strong community among our customers, and we really want to be the obvious choice for the tech-savvy and gamers.
Our competitors talk about us as we have the Komplett generation. So it's a unique position to have. And as also Andreas mentioned, it's very difficult to get into this community if you come from the more generalist side. So this is core for us. And then we want to take this position, this credibility within tech, and be the approachable experts for the less tech-savvy, like I assume most of us are. We want the best buy from an expert. That's the ideal situation. And we are online only, continue to be online only, and we have high ambitions to be the world's best online trade specialist in electronics.
We know that some of our big suppliers and some of our big international competitors are looking at us as having a very good or an excellent customer journey. And we also know, for example, that our Flex concept is something they are really looking at. And we want to continue on that journey. And we have, as mentioned, seven online stores within Komplett and Itegra, running on the same infrastructure. And let's see. Yes. And what is so common between consumers and businesses? And I'll come back to more to the business side later. But they are all looking to get the right products at the right price and with high availability. And we have extremely high availability and also a very transparent pricing, which is important to both consumers but also to businesses.
So it's the same, kind of, foundation or the same need for businesses and consumers. And we also see there is a big trend towards businesses looking for the same digital, easy-to-buy solutions like we expect as consumers. It has to be easy. The customer journey, I mentioned that already. Customer journey has to be so easy. And you saw it also in the commercial. It should be click, click, and then it's done. And our customer journey is at the forefront, and it has to be there. So that is an important part of what we do. And we are online, and we are tech, but we are also a kind of a logistics machine. It has to be fast and reliable delivery. It's very, very important.
And we deliver to the whole of Norway within a day, and we deliver in central areas within six hours, six days a week, even on Sundays. So if you go into a store on a Sunday morning before 11:00 A.M., you will get it delivered to your home the same afternoon where we use Porterbuddy. So it's an extremely fast. And if you buy it on... I've actually experienced here that you can buy... I... This was during working hours. I bought a product, and it was ready to pick on the pickup store in Sunnfjord after 30 minutes. So it's extremely... This logistics machine behind there is extremely important to us. And this has resulted then in the... In what we call the intimate and genuine customer relationship among consumers. I mentioned the Komplett generation, right? And we also see that on the business side.
We have a very healthy and strong business-to-business position. Yes. And what do customers think of us? You've already seen some of it, but as we say, the proof of the pudding is in the eating, right? So we are unrivaled in our industry in terms of customer satisfaction. We were awarded. We were number one on Prisjakt. We have currently 4.8 out of 5 on Prisjakt, which is the highest across all. We were top 10 in BI's Kundebarometer, which is the most renowned customer satisfaction review in Norway, and far, far ahead of our competitors. And also in the Norsk Kundeserviceprisen, this one where loyalty and also customer experience is number one. So they love us, and we know that. And that's also why we use that as part of our communication. You saw the commercials.
Another thing we are very proud of, and it's been mentioned already, is the Komplett PC. We have a unique position. We come from tech. We mentioned the Komplett generation, and we are now a scaled PC producer. We produced almost 50,000 last year, and we have high ambitions to grow this even further. We are making high-performance PC only with tested A-brand components. They are fully customizable, so you can get a standard version, but you can also change, and we guarantee that it's working. So if you change one component to another, they will still work the best possible way. You can upgrade and downgrade. And a lead time to market for new components. So if a new graphics card comes to the market, and if it's launched today, we will offer it today, delivered within a few days. No one can compete with that, really.
So this is a unique concept that we are very proud of, and also we believe has a prosperous future. We offer then extended warranty to prolong the lifetime, but also upgrade kits so we can keep it for a long time. We do believe this is important both to B2C, which is the major part of our business, but also increasingly into B2B. With AI coming in and what Andreas mentioned, there is a tech shift going on. We will be able to integrate that into our PCs immediately. So this is an important part of what we do. Customer journey, I've talked about already. We've talked about AutoStore, very fast, very reliable, some months up to 100% availability, other months 99.8%, 99.9%. So we're talking minutes every month. It's not working.
So it's extremely well-functioning, and it's in-house competence, in-house maintenance of the AutoStore. And then we did a big next step during the fall of last year. We migrated our whole IT infrastructure from an old SAP to a new cloud-based SAP system in a multilayered, composable IT structure, which really is there for future growth and giving... making us more agile and cost-efficient in the future. So our whole store was rebuilt. Our whole infrastructure was rebuilt, and we changed from the old to the new on the 15th of October last year. It was down two hours, our store. And then you came in after two hours, and it all worked. So it was actually a very successful migration, which is not always the case, right? And this makes us really a new agile web store. We can change it and do many more.
We have much more flexibility and agility than we had before because we also have in-house developers. I think it's important to spend a little bit of time on Itegra. Itegra is an important part of our business model, and it gives also scale and robustness to us. It uses the same infrastructure, but it makes us... Gives us scale and makes us more relevant to our suppliers, as also Andreas mentioned. It gives us scale, utilization of the supply chain, gives us more volume through our... For example, our AutoStore. AutoStore counts for a little bit more than 80% of products sold last year. So it's kind of the heart of our logistics operation. And it's also an important part to... In itself, we had a... As you all know already, we made... We had a bottom line in Itegra last year of NOK 50 million.
So it's profitable using the same infrastructure as the rest of the business. So we have a very strong foundation, but we also have a significant potential to grow even further. I'll cover five strategic growth priorities where I'll go into a little bit more detail on two of them. MDA, SDA, household appliances has been mentioned several times already, and we will get access to better assortment, better prices. But we also have a position. We have credibility. We have approachable experts. This will have a... Give us a very good starting point to grow into MDA and SDA. People trust us when we say this product is good, and I'll come back to how we're going to do it. It will give us credibility, and we also know that all these products will be linked into smart homes and the Internet of Things.
So this will be more important going forward than it has been before. We need, of course, also to work more on the last-mile delivery. We need to offer installation, carry it up to and bring back the old MDA, of course. I mentioned distribution and Itegra. It is an important part, and we do have also there a great potential to grow further. With a stronger group commercial, we will be able also to attract more suppliers, which will make us even more profitable on the customer side. So we are working both with suppliers to be able to be distributor for them, and then we can work to increase our customer base. We are quite strong in Norway. We are also present in Sweden, but we have untapped potential in the Swedish market.
Over the next pages, I will say a little bit more on how we will build the Komplett brand. You've seen some already. How we will drive the services. We mentioned Flex. Subscriptions have been mentioned already. Then also on how we're going to expand B2B. Next level is really to build the Komplett brand based on this superior customer and tech position. We launched this new concept 15th of May last year, and we will continue to roll that out in the coming... In the coming months and years. We have an unsurpassed customer satisfaction. We will also use our tech position, which we have already implemented a year ago in components and in gaming with the Komplett certified or certified by Komplett. We will extend that into more categories, making us... Using our credibility also to... to into new...
New categories, for example, like household appliances, MDA, SDA. So this is an important part to drive this further. We are very knowledgeable, and we do in-house all our performance marketing, digital marketing. We won an award for being the best in Norway last fall. We will continue to work on that. But at the same time, we need to invest in building the brand. We have a strong, loyal customer base, but we need to expand that base. Therefore, we need to invest in a very selected external marketing to attract new... new customers, but also to be more effective on our digital marketing, performance marketing. Over time, we want to be more... more... even more effective and then, of course, spend more money on... less money on the advertising and more on driving the loyal customer base.
Another very important building block, and we are very proud of what we've done here with the Flex, is on services. We introduced Flex in 2021, where you can pick up a product, you buy a product, and then you want to buy it with Flex. And then you pay a monthly fee, and then you can... two years down the road, you can deliver it back, and you can buy a new one. And then the next user will be able to buy that in a refurbished, either in our market or in other markets. So we've built that up over the last two years. It's a significant share. And we are seeing now that in the last weekend, we had a campaign with focusing on Flex and also on mobile phones. We had a 50% share of Flex for mobile phones. So it's an extremely strong concept.
We also see bigger basket size, and it drives, of course, higher sales margins, as we also have a margin on the Flex concept in itself. So going forward, we want to expand this further. We want to drive the share. We believe this is too low, 10%. It should be much more. We need to work more on renewal rates to make it even more... more attractive and also... work more on margins. We need to make more money on this. It's very profitable, but it's a huge potential to grow even further. Also, within the next years, we will go more into circular services as such. We will offer trade-in. We will start doing repairs together with partners and also to sell refurbished products.
We need to get in there, and it is important also for the upcoming consumers, which are more conscious in terms of circularity than many of us maybe. At least our children think we're not enough conscious, right? At least my daughter. Anyway... We will also, and that's been mentioned by all of us, subscriptions. We do not currently offer mobile subscriptions. We need to do that. We have a plan. And we believe we will introduce mobile subscriptions online within the next year. So that is an important part that also will build more margins. And lastly, financial services, we have a quite high share of sales also on downpayment and other consumer finance or leasing. And here, we have a lot of work, a lot of opportunities also, both in financing, but also insurance, for example.
So we will offer a monthly payment for insurance within the next few months, which is going to help us also drive the margin side of the business. So lastly, B2B, we have a very strong position on B2B. It is an important part of our business. We have a NOK 1.6 million business on B2B, and we have market-leading or industry-leading margins on B2B. We make a lot of money on margin on B2B. And our... What we want to do here over the next years is to take what we have on the small and medium up to 100 and expand our business also a little bit higher up to the... to the medium SMEs, where we need to also invest more, of course, in account and key account management, which is important to the bigger.
So they will still use the same infrastructure, the same digital journey, but we need to be a little bit more available for them on the account part of it. So this is an important part, and we expect to increase our market share in that segment by 50%. In the below 100, we have up to 25% market share in Norway, but it's much lower in the 100 to 500. So that's an important part. We mentioned Sweden. Sweden was... We set up an organization in Sweden a couple of years ago. We have a sizable business there with 10,000 customers, but it's still small, and we need to scale that further in the coming years. And we acquired a bold...
Statement or a bold target, and we have a plan, of course, to reach that target of doubling our business in Sweden over the next two years, three years. And lastly, which is kind of my baby as well, as I've been to Ironstone. Ironstone delivers managed IT services to SMEs. And we have now... It's taken some time since the acquisition in 2021, but we have now a proof of concept. We know our solutions work. They are packaged. It's ready. We see that we get more and more traction in the market, and we are now scaling up our business with Ironstone and also working much closer into the Komplett customer base to penetrate that customer base in... in where we know there is a huge demand for simple... easy IT cloud services. So this is a little bit... So I've talked...
Just to sum up a little bit. So our strategic priorities for the coming years is... Is about MDA taking our tech position into more categories. We want to expand with Itegra. There's a huge potential in Itegra, building on the same infrastructure. We need to build the brand. We need to build and use our tech position to build more knowledge to our brand. We need to drive services. As mentioned, Flex is unique. We need to build that further and also into subscriptions for mobile phones. And lastly, expand our B2B, very profitable B2B business. So thank you.
Thank you for sharing how you will continue to build the Komplett brand going further. Now we will move over to the next section and what you've all been waiting for, the financials. Please welcome the Group CFO since last March last year, Thomas Røkke. He has a broad background as CFO in several Nordic companies, international experience from operational management positions, sorry. In addition, Thomas has an extensive education from St. Gallen, Switzerland, where he also completed his PhD in finance and accounting. Today, Thomas will summarize the group's financial performance and describe how the group ambitions translate into financial targets. Thomas?
Thank you very much, Eline. So it's my pleasure to summarize a little bit and also put the financial targets into context on the upcoming pages. I'll do that by delving a little bit into where we are, where we come from and where we are today, and also before we then delve into where we're going into a little bit more detail. Where we're coming from and where we are is summarized perfectly, aptly with the perfect story. If you look back, we have actually had more than two years of declining sales across our two key markets. It's been a row of developments. First, a strong boost during the COVID period. Then a subsequent fast decline. There's been a reason for, you know, purchase patterns.
It's been consumers changing what to spend money on and all of these things actually going on. I think what's also important here for a consumer electronics retailer is that if you look at this on a monthly basis, this change happened very fast. You went from one situation where you could hardly get enough products to sell to a situation where you could hardly sell what you had. Given that we are, you know, in a perishable goods business, that has caused, you know, significant disruption in the industry. It remains, you know, a risk area, but has been improving over time. That has obviously had an impact on Komplett.
What you see here is basically the reported figures over time, starting with sales and ending with the EBIT margin. And as you can see on the left-hand side, the sales have actually gone up in reported terms, obviously due to the purchase and acquisition of NetOnNet. But in a difficult market. But I think the essential component there, amidst it, it's actually a good achievement, is that you can see that the scale has more than doubled. And very much of all the benefits you have been presented today comes back to this theme scale. It comes back to having the critical size to talk to our customers, the ability to build a platform to actually utilize and so forth.
So you can tick that box. It's actually gone quite well. On the margin side, you can see it has been a more bumpy ride. We have managed to get the margins back up, but you know, the 2022 situation was quite dire in the industry. But we'll come back to that. So if you look at where we are struggling the most, it's on the EBIT side. And the reason why we're struggling on the EBIT side is twofold. It's the volume dropping out of the market, and it still does, as we will see on some of the subsequent pages. And we're also squeezed by cost inflation. So we have not managed to actually build down the cost base in parallel. That is also one of the reasons why this remains, you know, one of the key priorities in our financial targets.
That said, you can see that still in a market where we, you know, like for like fell 4% last year, we still managed to lift the earnings by 60%. So we are stabilizing and we are going in the direction, but definitely upside potential on that parameter. Looking at the margin development, you can see here that throughout 2023, we improved the margin consistently every quarter. And while, you know, in the beginning, it was very much catching up with, you know, a difficult 2022, you could also see towards the end of 2023 that we managed to surpass the previous weakness. This improvement was built on a number of factors, which we have actually been discussing during the quarterly presentations. First and foremost, it's an improved health of the industry inventory.
For us, it has been a key driver, but obviously also for the other players in the market. What we've also been seeing is that there has been a better pricing environment. Inflation is not great for our cost, but it's better for actually being able to manage prices out. So we have actually been able to push prices out and also to compensate for adverse FX developments and the sort. But not all of this is market-related. We have also rolled out new processes and tools for being better at pricing. I think Trygve referred to one of the tools in his presentation where they are now actually implementing it. And that has actually contributed very well to lifting the margin.
Last but not least, we have also had the scale advantages from NetOnNet to benefit into this, which has also been a key component, as you see on this page. On the left-hand side here, you basically see the sourcing improvements from a specific program designed to capture the benefits of the NetOnNet acquisition. As you can see here, cumulatively, we expect to exceed the NOK 200 million that we set as a target at the time. Not all of it has yet been realized. It takes some time to negotiate contracts and set new terms with suppliers. Then it needs to be ordered and your inventory needs to be replaced before you actually get it into the books. But we took something like NOK 90 million into the books last year. We expect NOK 80 million this year.
And we also expect to recapture even more when volume and some of the final negotiations are in place. On the cost side, equally so, the cost optimization in NetOnNet has gone a very long way in mitigating the cost inflation in that business, which is substantial, you know, given the inflation in Sweden has been higher and they're also, you know, more subject to inflation given a larger share of shops and personal expenses. But as you can see here, we are by far surpassing the level we actually intended. And we also expect something like NOK 41 million to come through in our accounts for 2024. Where does that put us today? I think as we stated on our quarterly report presentations some three weeks ago, we are expecting improved results for this year, but we're still in a very difficult market.
You can see here on the left-hand side, the sales development, which is still problematic in the sense that if you see that we have a relatively stable sales between 2022 and 2023, that masks a FX effect of about 4%. So we're still falling in 2023 and the market is still a bit difficult. And as we said, you know, for three weeks ago, the year has also ended in 2023 a bit difficult, but it has also started difficult in 2024. And I think also if you look at the external sources like [audio distortion] Statistics and Central Bureau or other trading indexes, you can see that there is a tough market still out there. On the margin side, we did, you know, show a consistent improvement last year.
We expect that to continue, as you saw from the numbers on the sourcing program, but we don't expect to have the same market tailwind. And right now, you know, in this difficult market, it is not only we who actually had a bit too high inventories going out to 2023. So it's a tough environment out there. On the cost measures, we have lined up obviously an additional cost program for 2024. So we hope to be able to maintain our cost position and even improve our cost ratio going forward. But I think the long and the short of it is that yes, we are going to be better in 2024, but 2024 is still going to be a challenging year for all of us in the industry. Jumping into a little bit more longer term and positive view.
This basically summarizes Jaan Ivar's very apt description of the market as attractive. As you can see, the dynamics are the right ones. We have the right position to benefit from it, being the leading online player. We have the right brands to benefit from this growth, having this unique combination of brands which are very highly regarded by the customers and low cost, which I think is fairly unique. Also, last but not least, you know, as Andreas has shown, you know, we're now in a position to actually help these brands even more through a shared platform to drive this and also benefit from being able to play in different segments and stabilizing the business. The long and the short of it, this is an attractive market.
I think, as we said previously, it's when the market returns, and it will definitely be before 2028, is a bit uncertain. That's why the targets we have put up are mainly driven by our own ability to influence them. That goes both for the sales and the margin targets. If you look at the sales side, Josefin gave a very good explanation of why NetOnNet can now actually leverage its online first position through selective locations. In Norway, you know, taking the strategic spots and in Sweden, finding the white spots that are still open and leverage that business.
Andreas showed, you know, the relative or the lack, rather, of scale we have in the home appliances in the MDA and the SDA segment, and our ability to, through the new sourcing team, to actually recapture and take that position and also to build some of the telecoms businesses. Erlend showed also the B2B and the distribution business, the potential we have there, which is substantial and by itself addressable irrespective of the market developments. And last but not least, in the gaming, Trygve outlined, you know, the unique position we have there and the potential we have to actually even lift this strong position further. So on the sales side, you know, we're pretty good. And on the margin side, which is the most important part of this, I think I would like to emphasize maybe the midstream of that arrow because that is the critical driver.
We now, or not now, but tomorrow, we will have a commercial team taking responsibility for this operation across the business. That gives a lot of advantages. The most immediate one is the sourcing benefits we've been discussing so far. I think the one of you with a pocket calculator will see that we have not stretched that target too far. But that is to make sure that we also emphasize the other ones, which is the sales mix. I think you saw the impressive range of private label products we have and, you know, through a now commercial platform across the group, how we can actually leverage that. Last but not least, looking at the lower end of this graph, on the cost side, that has been kind of the disappointing part of the journey so far. We have increased the operating cost % last year.
That is not great. We will not do that again. We will take that cost position down and we will do that, you know, ideally through sales development, which will, you know, through the operating leverage, automatically reduce this. The cost target is still requiring certain optimization, needless to say. But if the sales are not there, you know, we will just basically have to adjust the suit to the body. But in the end, we aim for a 3%-4% EBIT margin when we when when we come to 2026-2028. And then the question is, why is there a plus behind there? It was obviously, this is only the first stage in the relay race. After that, we will definitely revisit these. That is only one part of the equation.
Jaan Ivar likes to say that we are the Formula One in retail and has a very eloquent description of that in terms of product cycles, etc. I think he forgets to mention that it also means that our capital is working faster than everybody else. And this is what you're seeing here in the middle. That's basically the capital rotation. How many times do your assets rotate during a year? We took 20 companies, basically more or less split 50-50 between consumer electronics and normal retail. And as you can see here, not only consumer retail, you know, the Formula One, you know, the online retailers is the Ferrari brat in terms of driving this. And then you might ask yourself, you know, why does this matter? And it does matter actually for two reasons.
One is if you look below the chart here on the left-hand side, you can see that your return on invested capital, which is actually what I care about, is significantly higher driven by this rotation. You can basically take the EBIT margin with some small adjustments and multiply it by this rotation. And that basically gives you a return on invested capital. So A, it basically drives your invested capital. And it also means that you in this industry, you can have a higher return on invested capital in the traditional retail business, but even higher EBIT margins. So that's some, you know, frequently overlooked fact. The other advantage of this is to go the other way.
An asset turnover of 9.1, which we actually illustrate here, means that with one NOK in investment, you can drive nine NOK in sales, which means that you could actually finance this growth that we are expecting very cheaply. You don't need to invest very much to grow the business. And that is good because doing that, you can actually use the capex needs you have on your strategic investments. And on that part, we have come quite a long way in terms of investing into the IT infrastructure. Erlend was showing the upgrade in Komplett Services, which has been fairly impressive, and that's largely complete. The last one now standing is Webhallen, where we are rolling out the ERP system from NetOnNet. And after that, we are largely through with the major upgrades in terms of IT.
We still have a supply chain program where we have postponed it, as you also saw in the quarterly report. It does not mean we have left it. The point is, with the market development during recent years and the volumes residing from that, the need for additional capacity in the inventory and supply chain has been fairly modest. We basically redesigned it and we're now looking into how to actually best do it, how to best structure it. Now it's as a platform with several companies. This is a strategic investment that will come up in the coming years, but then timed correctly and also based on a very strict cost-benefit analysis. I think the most important takeaway from this page, though, is the final point.
That is, the business is structurally actually geared to deliver a very high cash conversion operationally, which means that that can benefit us in all both in repairing quite a lot of the balance sheets. We can use it for many other purposes, as we will see on the coming pages. A further part before we kind of discuss how to use it, a further source of improvement is actually our working capital position. One of the reasons why the consumer electronics industry rotated its capital so fast is because it has very low working capital needs. We took the same companies on the previous page and took a look at the working capital levels over the last five years and tried to do it in a way that was as close to our way of showing working capital as possible.
As you can see, there are players in the industry with higher net working capital ratios than we, but actually the large and established players very often have significantly less. The largest deviation we found was actually in terms of our payment terms. Andreas already mentioned that. We are already addressing that. We have actually come quite a long way down the list and we are improving our payment terms already substantially. We do expect that actually to bring results already in the first half and definitely in the second half of the year. Another key key element here, and we have been talking very much about securing availability of our inventory during 2023. That was critical. To regain availability for an online player like us is essential for being able to play in the industry.
But we have simultaneously invested in systems for being better at planning our S&OP, our sales and operations planning. I think the experience we shared with you from Q4 showed that we still have some way to go in that regard. And this is an area that we will push hard in 2024 to make sure that we can provide the same level of service with lower inventories, which will also go a good way towards financing growth. We are already using factoring, as I think many of you are painfully aware of, and we will continue to do that. And we will also use other trade-related products when it comes to the working capital area, but we will do it on a cost-benefit basis.
So we will have a very strong guide towards the cost and the benefits coming out of that and also how we actually use these. And last but not least, you know, if you look a bit longer term into this, you will see that through a shared supply chain setup, we do expect to get even more benefits out of this when it comes to the net working capital position of the group. I would also like to mention that the Komplett figures here are from Q4, which means that they obviously contain the Swedish deferred tax money. Then, last, almost last, but not least, the capital structure of the group. We are on a journey towards a balanced capital structure. We have a target of 2-3x EBITDA when it comes to our leverage. And you can say that, well, aren't you already there?
In some instances, we are. But this is a figure that is still, you know, based on a fairly modest EBITDA and is also subject to seasonality and volatility. But I think we have shown during 2023 that we can manage that situation either internally or also through our partners as financing partners. That's why we have termed this controlled. So we feel comfortable that we are in a controlled level and environment. But that's not where we're going to end up. The target is obviously to drive this down further and to make sure that we get down to a sustainable and solid level, ideally also including the off-balance sheet items. But we think we can do this both through the cash conversion capability of the group, but also through the continued organic deleveraging, i.e., just by getting better earnings, we can also improve our financial ratios.
We still have some short-term items when it comes to mind on that we need to optimize in the capital structure. I think, you know, the Swedish tax money is one of those items which we are aware of and that we will make sure that we can take out. We think we will also be able to reinvest to drive the platform further when it comes to the strategic development of the group. Last but not least, I think for many of you in the room, we do obviously want to reestablish and return this money and the cash conversion we generate through dividends. But we are not yet in a position, given the market climate and the market development, to say the time and place for that.
So to summarize those key points, I think we can say that, well, we do have a challenging market long and near term, but we are actually quite used to that by now. So we will deal with it. And this is a market with a long-term growth opportunity, so it remains attractive. Beyond that, we have organic, i.e., our internal growth and profit potential that we are starting to realize. And while we have put targets up for 2026 to 2028, we're obviously not waiting for that. So this will be realized now during the period 2024 to 2028. When we do that, the inherent capital efficiency and rotation of the capital, we make sure that we can actually do that very cash effectively. And we can do that with a still high operating cash conversion, which we aim to extract from that development.
We will also continue, and we put emphasis on the word organic deleveraging. We do obviously want to have the leverage ratios down and a more balanced capital structure, but we think you can achieve that by all means. And last but not least, as I said, we will start returning money to our investors, but we cannot really say when. And we will do that in an orderly fashion, preferably through reinstating the dividend policy as previously written and with not planning, if that is the impression we leave from that point, any major share buybacks or returns of capital for the time being. Consequence of that is the financial targets, which are NOK 18-20 billion by 2026-2028. And then why is there a plus behind it?
The reason for that is simply that while Jaan Ivar is happy and running marathons, we are viewing this as only a first stage of a rally race. Definitely, we're not ending our targets there, but we will refine and develop them as we go along. The EBIT margin of 3%-4% is located in the center of this page because that is the essential part. That is what we actually will focus on, irrespective of what actually your sales line is saying. Then on the cash conversion, why were we emphasizing that? We're emphasizing it for two reasons. First and foremost, we would like to highlight again that this is actually a high return on investment capital business, and this is only kind of the mirror image of that fact.
The other is we will make sure that we use our cash efficiently and that the operations are generating enough cash to actually both develop the business and give you the returns our investors deserve. Last but not least, we will also use that to make sure that we get a balanced and remain having a controlled capital structure. On that note, I'll pass the word back to Jaan Ivar.
Thank you so much, Thomas. I'll just summarize in a couple of minutes, and then we'll open up for Q&A. We're okay on time, and thank you for paying so much attention on this. I showed the five pillars and laying the foundation for our corporate strategy. I won't dwell on that. I think the backdrop to this is that we will continue to be pioneers and continue to challenge and continue to be there in the forefront, whether it's towards our customers, suppliers, and the way we operate. Not necessarily a vision, but being pioneers forever, whether it's AI technology, content translation, or what we do on the last mile delivery, all the things we can do to improve even further. Then personally, I'm very committed to deliver on these targets. We have shown the buckets of growth in terms of the organic growth plan.
I must say, as a personal experience, when I was with Elkjøp for close to seven years together with Andreas and many others, we built that platform from NOK 17 billion to NOK 42 billion. And only NOK 4 billion of that was structural growth: Infocare, Fona, and Carphone Warehouse. The rest was organic growth. So it's up to us. It's within our control, our destiny, to deliver on the top-line growth and the EBIT growth. And hopefully, you have seen a team very also committed and dedicated. I'm very proud of the team, looking forward to the growth journey. And I think with that sort of summary, we'd like to open up for Q&A.
Bear in mind, since you who are here physically, you bring your Bluetooth speaker for each one of you as a goodie bag. Test it at home. It's really good. It's the yeah. So make sure that you take one with you. So I think now we'll open up for Q&A.
Yes. Thank you, Jaan Ivar. We have the rest of the executive management team join us on stage, including Head of Strategy and M&A, Markus Solvik, and Head of HR, Kristin Hovland. Yeah. Yeah.
Hopefully, there will be many questions and lots of people in the audience.
Exciting backdrop. And so thank you for everyone presenting and educating us. And of course, there will be questions. I think we'll start with the audience present here today, and then we will move over to the stream if there's any questions from those watching the stream live. And we encourage everyone to start before asking the question to introduce yourself with your name and company. So now we'll open up for questions from the audience. Yes, I see we have. Should I start with the one to the right, further right?
Håkon Fuglu from SEB. You're guiding on a sort of a revenue uplift of between NOK 1-2 billion within 2028 from new assortments and categories. How will that sort of impact your OPEX development for that same period?
Yeah. I think, first of all, we have a very scalable business. So for example, if you take Komplett Services, we can do a lot of that growth without adding any costs in terms of the setup with the AutoStore. In terms of NetOnNet, there will be some cost increases due to store expansion, but it will be neutral in terms of the OPEX. It will probably reduce the OPEX percentage as it will grow in a market where we're not very present. So in terms of the OPEX percentage as such, it should decline given the growth factor. In terms of absolute levels, it depends a bit in terms of the different business units.
Thank you. And follow-up, you introduced four product categories today. Could you give us some insights on the gross margin differences there? Yeah.
We won't sort of reveal all details, but for sure, MDA and SDA, that comes in general with a higher margin than the average margin. So that's a positive. And then mobile with subscriptions, definitely with very high margin. We know what the operators are paying some of our competitors to have that. And then private label, as alluded to, it's twice the margin versus sort of the branded goods. I would say that where we see areas with lower margin, that's probably within phones without subscription, but it comes with a high sort of ticket size. So sort of money-wise, it gives profits, but lower margin as such on, let's say, phones without subscription. Not sure, Andreas, whether you would comment on not all details. Oh, there you are.
I should have something to stand on. Not. I feel much taller than I'm actually.
But perhaps not all details, but some more to the other categories.
No, I think you're right. I think basically the margin structure is more or less the same across computing and SEE categories. And then definitely mobile without subscription is very low margins but high revenues. And then MDA/SDA, traditionally higher margins, so. Thank you.
And just a final one from me. You've closed five stores in Webhallen. Could you comment a bit on how that will impact the group EBIT?
Yeah. So as Trygve mentioned, it will be a positive to the EBIT as such because those five stores were loss-making. And we're capturing some of that volume to the other stores and through our online sales. But Trygve, you would like to comment. Yeah. For Webhallen isolated, it's a positive, and it's a positive for the group as such on that.
We are measuring now how much of the sales are recovering with online and the consistent store network. Some of the stores were in Stockholm, where we have a lot of other stores. Then customers just take maybe five minutes and then are to the next store. So it's not have a huge impact as we see it as still.
I think also in general, the distance between the store margin and the online margin in mobile is too narrow. So we'll have a higher margin in the stores due to mobile with subscriptions and accessories and private label, where the sort of mobile tradition has been a bit too much of SKUs, SDA products with sort of less sales and less margin impact. So you will see a and more of a sales culture in the stores than perhaps what we've had previously, where you used the Norwegian word kremmerskap, sales attitude in the stores. There's more room for awarding the best team among the 12 stores. Things like more competition is something Trygve is working on.
Yeah. Also basically changing our store concept. We are rebuilding our store in the Sveavägen now, which is our biggest store. And earlier, our stores were more like a click-and-collect place, and now they're more like a store where we have physical salespeople pushing more sales, if you want to use that term. Thank you. I think we had a question there.
Yes. So Ole-Martin Westby, DNB Markets. On slide 19, you showed your sort of guidance for revenue growth and margin uplift. Obviously, it will be very positive in 2028. But can you give some color on how you see the run-out of the different strategic initiatives and some color on the milestones that we can sort of look for and see whether you are on track for delivering on these initiatives? That would be helpful.
Yeah. So the NOK 20 billion is 2028. The NOK 18 billion is 2026 in three years. So very confident to reach the three-year target. And we'll have a gradual build-up on that. And we'll probably also report on the strategic initiatives as we go along, especially in the buckets of B2B, in the buckets of the NetOnNet expansion, and of course, also the MDA, SDA, and telecom with subscription. I think telecom with subscription would be within this year. I think MDA will be a bit further down the road in terms of seeing the real impact. But when you really solve parts of that, we will see some bigger steps. But it's important for me to say that the NOK 18 billion is a commitment for 2026. So it's a three-year target and a five-year target.
And the EBIT percentage for 2026, the minimum 3%, that's 2026. And then there is a way to get to that for 2024, 2025, and to 2026. And for 2024, as Thomas mentioned, we expect profit improvement compared to 2023, even in a sort of demanding market.
And a follow-up on that, it looks like a significant part of the improvement is coming from increased private label share. Can you comment on, just to give some color on that, what is the current private label share in Komplett and NetOnNet, and what is the private label share that you see in this guidance for 2026, 2028?
This is a great question because we thought that would be a question from Ole-Martin in our group. Who can take the private label share where we are at, and also with the Komplett PC and without the Komplett PC?
Yeah. I think if you include Komplett PC, the average for the group is around 15%. If you take that out, it's around 8%. If you then look at the different companies, it's not the biggest, very significant difference between NetOnNet and Komplett, but Webhallen is trailing far behind.
It's like 6%.
Yeah. Around 6% in Webhallen. So that's where we are right now. I think the potential is very big. So potentially, we can go even further. But we have also built some safety into the estimates because you never know what's going to happen on the market.
And a lot of these large categories are depending on having favorable terms from the factories and from the regions you're sourcing it. So things can change. That makes it harder to achieve doubling the business. So I think there's an element of safety in that as well. But for 2026, we are looking at at least 20%-25% target. It's fair.
We just have a follow-up question on that because I'm being kind of a sunnmøring, which is the Norwegian version of a Jew, which we have great respect for. I've actually never understood that you really had all this private label. So what are you going to do, how to market that to the audience? What's your plan there? And I'm really cost-conscious.
Yeah. I'm married to sunnmøringer. I know. Before you start off, I think in NetOnNet, it's very sort of visible. So just to say that before you sort of.
Yeah. And I guess we also have a proof of concept here because we worked for it so many years, and we grow the share of business every year. We have grown 2% since we got together in this group constellation. So we are continuously working with the factories in China to actually expand the segment. But we're also seeing a tough market, that the consumers actually are choosing those products before others now. And I would say in some of the cases, they don't actually know it's a private label, which plays for us in the mid-segment. In the low-end segment, it's good for us that they know it's a private label. But in the mid-segment, it's not always the best way to say it because the customers see it as affordable and valuable either way.
So it differs between the different brands as well in the private label portfolio, I would say.
Maybe I'll add on the Komplett Services side or Komplett business-to-business and business-to-consumer. The Komplett PC, which is really a private label as well, is very important to us and is really the core of what we do, as I showed earlier. And we've had some before NetOnNet came on board. We had a not-so-efficient kind of private label strategy, and we get now access to a much broader and much better portfolio of private label. And we're introducing private labels from this group initiative as we speak. I think we introduced the first last fall, and we will continue to build that up over the coming years. And we also use then Komplett PC, as you saw on the commercial as well.
So we will continue to roll this out both externally and, of course, on our website.
I think that there's always a lot of elements. As you've said, the stores in NetOnNet play a very important role. You're going to have an overweight of private label displayed in the stores, and they're going to have a clear role in the stores. But I think in general, it's always down to product and price. So depending on how the market goes, we are taking out some price points in strategic categories with private label, making sure that it's the unbeatable choice for the money. And at the same time, we're building some reassurance for the customers. Like I mentioned, the 10-year warranty on the Andersson TVs, just to make sure that for the customers, even though it's a low price, it is a safe purchase.
We're also going to work very closely with recyclability measurements on the private label products to make sure that they are actually not perceived as very cheap products, but they actually take care of the whole recycling thing as well. So it is a long-term game. We have just right now started to roll out the products based on a lot from the NetOnNet ranges. But it's a journey that will take some time to establish the brands to the same extent, particularly in the Norwegian market as they already have in Sweden. But we have, as I said also, already put 2 million private label TVs on the market. So there are a lot of private label TVs that people are using every day. We have 233,000 customers in Norway gaming on a Komplett PC every day. They watch that logo every time they boot up the.
So we have a massive scale already in this segment.
And also for Webhallen, it's actually some quick wins. We just changed the accessories that we have, which is Deltaco, which is not a known brand, to Andersson, and we doubled the margin. And the consumer won't care if it's Deltaco or Andersson if you buy a USB cable or a network cable. So some of these things don't need marketing either.
So what you're saying is that you'll reach the 4%, not in 2026 but in 2025.
Well, let's see.
Don't answer that question.
We have a question from the middle.
Yeah. Hi, Stian currently from Taiga Fund for Andreas. Could you talk a bit about the team and the people and the new commercial team going on? Sure. Sure.
So we have recruited four category directors that are, in my view, the most senior in the industry. That was very important for us to have senior management with good ties into the suppliers. That is the whole foundation of my message today, that we have a tight relationship with the suppliers and that we know how to trade well. And then what we've done is that we take investor breed or the most capable people within the different categories in the local teams, and we gather them around the categories. It's going to be a mix of internal and external people. The central team is now being around 30 people that will work on behalf of the whole group, going live, as I said, tomorrow.
So what we've done is that where we see that we have clear lack of competence, we've gone outside of the group to recruit, so external recruitments. But in some categories, we have definitely the authority internally, and that's where we have promoted those people. So for instance, computing is an area which is a stronghold for the group. The Komplett team is the best in the industry, and they now take on a group responsibility. Yeah.
I think where we have an external recruitment is around the home part with SDA and MDA, where Espen Nordheim worked for you. He sort of took the SDA share for Elkjøp to 60% in Norway. So he was on board first of December, and he has formed his team, just as an example. Important to say that we are not increasing the number of FDs by doing this.
So right now, it's net zero, but we expect it actually to have reductions because, yeah, it will be more local sales execution for those working locally, and then the central buying will be centrally driven. But it will be definitely a teamwork, and it's not sort of an A or B team. It's really a team together, but more clarity around the mandate for what's being done centrally and what's being done locally. So I would say on the local side, the upside there, which we haven't talked so much about, is around the sales execution and the campaign execution. And yeah, this is Formula One, so every day counts. You cannot sort of lose one month. If you miss Black Friday, you miss Black Friday. So it's really about also more execution on a daily business in this.
Not saying that we're not doing that today, but there is more on that local execution as well.
You have a question?
Yeah. Thank you. Just to follow up on Andreas.
Is he Paul Wohman? He didn't say his name.
Yeah. I'm Paul Wohman. Thank you.
We're in the military together, so.
The only way. I think one of the important things there is, of course, the gross margin going forward. I think maybe Andreas has the most important role going forward in that. And we talked about private label that some of the analysts mentioned. I think the biggest value change for Komplett going forward will be to handle purchasing going forward. And you have shown on the financial side, you showed on the net working capital that you were on 1.6% versus some of your competitors on -1.5%.
So you have NOK 3,400 million that you can work on there. My question is, and it's maybe back to because everybody knows that the market is shitty. The consumers are not in the best standing point, but that will change sometime. We don't know when. But how fast can you do the needed efforts? And you mentioned that you will meet your new team tomorrow to have a centralized sourcing department. How fast can we see those changes? Because if you think more long-term on Komplett, I mean, you have the lowest OPEX to sales. You have the lowest gross margin, I would say. And you have maybe the biggest potential to improve gross margin. And of course, you have to look at business to business, and there are some other effects that you have to look at. But I think that's really the important game changer.
So on those two points, how fast can we see those developments? And you talked about, "Okay, let's forget about sales because sales will be what it will be depending on the market." But on the sourcing side, I think it's really important to take that because, as you know from Elkjøp, there must be a big difference on the gross margin and the payment. What do you call it? The payment terms. Yeah. On the payment terms. So how fast can we see changes on that?
I think was it for me? Yeah. Yeah. Yeah. So I think in terms of payment terms, we're seeing that coming through right now as we speak, and it's being rolled out gradually. And then as we switch the stock, it's going to have a direct impact on the cash position, of course. On the margin, it is slightly harder because margin in this industry is many different levels. You have front-end and back-end, and you have kickbacks and bonuses and quarterly, etc. And it's also a sales mix, a category mix in there. We're going to see immediate effects on the sourcing price. We're going to buy at better prices than we have done previously. But how much of that is going down to the result depends on how much on the pricing and the market conditions.
So I think there's also some leeway in the bridge. So we haven't put everything in there. I think that we will see more improvements on the margin than we actually show here, but some of that is probably going to be reinvested. Leeway to the market. Yeah. Yeah. And I think that it's super transparent, the market we're living in. And I'm happy.
I love my competitors, and I think that we are really well-positioned now to compete going forward. But I think definitely there's going to be a tangible benefit from sourcing. Yeah.
I think also one element we haven't touched so much upon that, but that's access to the right assortment. Like for the first time, due to Andreas's work, we had the Frame for the first time in Komplett during the peak season. But that's just a small part of having full access. And we know that the competition authorities are watching this, that as a dominant player, you cannot have exclusive rights to some items. And the Frame TV is one of the most selling TVs. So you're also working on that sort of, again, what's your say? Access to the right assortment in this, which will have immediate benefits. You will see that for Q4 during peak. Okay.
Sorry. Yeah. One more question because, I mean, you're really strong on the gaming side, as you mentioned, and you come from the gaming and the tech savvy. I mean, everybody who knows Komplett from a long time. But I think one of the question marks I have is if you want to broaden that market towards some of the home you mentioned Elkjøp Dixons have been successful on the home appliances. And you were part of that yourself. How do you think about expanding Komplett, not only being top of mind for the tech savvy but also for the younger generation, and especially the female generation? Because I don't know. I don't have the numbers. But if you look at your actual customer base, I think it's very few females, at least a lot less than if you look at on the tech savvy and men side.
I could just do a brief intro, and then Erlend has much more insights into this. But I think it's very much around the existing customer group we have to also do additional purchasing within MDA SDA. We saw that when we had a white goods campaign in Komplett recently where it was sort of integrated into the total campaign. It worked much better than just a separate MDA campaign. But we're very conscious about the tech position for Komplett, so bearing in mind also the NetOnNet part in this. But Erlend. Yeah.
And that is I mean, now you're related to Komplett, so I want to answer for Erlend, but we do not have a tech-savvy customer. Absolutely not.
We are in the price hunters, all Swedish, very broad, everyday Swedish customer living in all parts of Sweden, not especially in the big cities or mostly not in the big cities. As you saw, the Pure Sense, which is a very good brand for us, I don't think that any man in this room buys their women's hair dryer or such. So we have a good offering also to all kinds of Swedish. Now we're also expanding to Norwegian, and that is why we also are complementing the brands very well because we won't go into the tech-savvy customer. We will offer something else in the Norwegian market, and we see that we complement each other very well. But off to Erlend.
I think if you look at gaming, it gets more and more women. It's probably 30-70 now. It used to be different, right?
And we also see that gamers are not only teenagers and people in their 20s anymore, right? It's 40 years old and 50 years old. And they also buy their appliances from somewhere. And we do believe we will be able to attract more of them, especially with everything being connected into smart homes. There is a huge kind of road into that. And we have a position there and a credibility there that we will utilize. And then I think the beauty of the three brands towards the consumer market is actually that we can attack our competitors from different positions, right? With a more generalist, more price position, and then us from the tech and then gaming in Sweden and so on. We will play different parts, making the portfolio much stronger than one plus one being more than three, so.
Then we have a question from the back, and I think we'll move from that question to the stream afterwards.
Okay. Lars Olavsen, investor and colleague of many of the people here in Komplett, former colleague. A couple of questions, two questions, especially around the growth opportunities. I would maybe have liked to see you talk a little bit more on the opportunities around the B2B. You mentioned NOK 6 million-NOK 900 million. For me, the opportunity seems quite significant, and you have a quite unique situation around the SMEs. So it sounds a little bit defensive. Could you say something around especially on the Swedish opportunities? It's traditionally been focused around Norway. And also turn around the NOK 6 million-NOK 900 million figure maybe into some growth figures. If you have that, Thomas, what does NOK 6 million-NOK 900 million mean? It's a little bit buried in the numbers for me.
The second question on private label, again, especially from a Norwegian point of view, it's always been a great opportunity, but it hasn't been converted. So with NetOnNet coming to become part of the family with its great portfolio of private label, can you say a little bit more concrete around ambitions and numbers on private label for Norway? That would be interesting to get some hard facts.
Should I comment also on, well, as I mentioned, the Komplett part of the B2B is NOK 1.6, and there is also some B2B and NetOnNet and NetOnNet and NetOnNet. Not that much, but still. And then if you so by saying that we will grow 6-900, it's kind of up to 50% or 70%, right, over the next years.
I do believe that we have a very strong position then on the smaller SMEs, right, what some call retail to business. We will continue working on that, of course, and rolling that out even more in Sweden. We will then also work together with Webhallen and NetOnNet also in the business side because the Komplett brand is not that known in Sweden, right? So we need to build the brand also in Sweden and at the same time develop the infrastructure to be able to attract more customers in Sweden. We will work also together with Andreas and his team to get access to more brands. There are not all brands we have now availability on our side. If you compare us to the major player in the Swedish market on the SME, which is Dustin, right? We need access to more products.
We do not have the range necessarily, really, to build in the Swedish market, but we have a very strong plan to develop that. At the same time, we will then develop the, as I mentioned, the account sales, meaning the 100-500 employees. This together with then the Ironstone, right, which will add more kind of stickiness and more long-term relationship and more recurring revenue, higher margins, we are able to kind of lift this. Well, we put in this figure of 6-900. We believe there, of course, there is more potential, but saying that without really proving that we are on that way. But we think it's a fair target for the next few years. You mentioned also on the private label. Especially around Norway. Yeah. Well, we have a 17% private label share, including Komplett PC.
I know we have a kind of a quite small share of sales with Iglo brand and Svive, which Svive is, of course, and both are part of the future as well. But we've not had the same scale as NetOnNet had and the availability that they had through their network in China but also in Turkey, right, where we source our products. So getting access to a much better and much more both high quality, high margin, and low price will be a step change for us in Komplett, which we will then focus more on both online but also externally in advertising that. Yeah.
I think it comes down to what we define as range architecture. This is where I say that the execution of the commercial strategy is going to improve. So the private label propositions are going to be included in the ranges. The ranges are going to be signed off centrally. So it's not like we're going to buy something and hope it works. It's going to be in the foundation of how we construct the ranges going forward. So it's already a planned introduction of these products in all the ranges. So it's going to be a much more it's not going to be a voluntary session for anyone within the group, whether to pick up the private label products or not.
Okay. Good. I think you should jump to the online stream. People are following us here as well. So Joachim Huse is asking, "What's the expected level of CapEx over the coming years, both maintenance and expansion, given some new NetOnNet stores, etc.?"
That's a good question for you, Thomas.
Yeah. I think first and foremost, we emphasize that we will adjust the CapEx levels to the profits, i.e., it will not be a fixed size, and it will also time the investment so that we can actually, to the largest degree possible, finance it ourselves. When it comes to the underlying maintenance and CapEx needs, I think we operate with a level of something like NOK 100-120 for the time being. On top of that, you will require some strategic CapEx, but as Jaan Ivar has alluded to, relatively moderate when it comes to quite a lot of these initiatives. The main driver of CapEx would be the supply chain program, where we still think that at least two-thirds of what we have previously communicated is still outstanding and being required.
But it will depend very strongly on how we actually set up that program, and that is still under review. The timing will also be dependent upon when we actually will need it and also on the cost-benefit analysis. So I don't think we are in a position to give a kind of average CapEx level for the coming period.
Moving over to Petter Nystrøm . On gross margin for 2028, do you expect this to be on par with the best in the industry, i.e., Elkjøp?
I think if you look historically, the EBIT margin for Elkjøp has been between 3%-4% EBIT, but with a strong growth, of course, on that. But I would say the figure is among leading in the industry, and then bearing in mind the stock turn and the return on the invested capital. But we won't stop by saying that there is a limit to the EBIT 4%+. It's definitely an ambition to go further than that over time. And then a follow-up on product availability. Is it such that the largest players get exclusive priority? I think historically, due to it's been a bit like that, I think that will change. I think, as I mentioned, from a competition point of view and from the competition authorities, they watch very closely if some players get full exclusive access to some products.
And it's also related to who you meet in the different type of settings and suppliers. So we will work hard on having the best availability and not standing behind any of our bigger competitors, Andreas.
No, no. I think NOK 16 billion is large enough for us to be relevant for all suppliers. So it's just about timing and engagement and when you place the order. It's not like anyone comes and scoops up all the volumes in the industry. That's not the way it works. So I don't see that as a particular problem at all.
With that, I think we can conclude that the Q&A session is over for today. We want to thank you on behalf of Komplett Group for everyone following us here in the audience and on the stream. Here, we will be serving lunch shortly, so please stay and eat. And a replay of the webcast will be available on Komplett Group's webpage a little later today. Thank you all for attending, and have a nice day.