Slide 1: Kid ASA Q3 2019
Kid ASA 27 November 2019 Q3 2019 Presentation available at investor.kid.no
Slide 2: Highlights Q3 2019
Highlights Q3 2019 • Revenues increase of 70.0% (7.1%) compared to Q3 2018 – Kid Interior revenue growth of 4.6%, like-for-like growth of 2.0% – Hemtex like-for-like growth* of 3.2% • Adjusted EBITDA excl. IFRS 16 of MNOK 75.3 (MNOK 78.9) – Kid Interior EBITDA ex. IFRS 16 effects of MNOK 69.6 (MNOK
Slide 3: Operational focus in Q3
Operational focus in Q3 Operational focus for the Kid Group: • Kid Interior launched click & collect on August 15; 38.5% of online orders after launch • Little roomies (baby interior) launched in Hemtex • Lodge collection (cabin interior) launched in selected stores and online in Kid Interior • Stre
Slide 4: Hemtex integration according to plan
Hemtex integration according to plan Early growth initiatives implemented in 2019: • Increased marketing spending, including in-store marketing and piloting of direct mail advertising • New campaign strategy implemented, focusing on a combination of full category discount and traffic generating prod
Slide 5: Hemtex integration according to plan
Hemtex integration according to plan Initiatives prepared for implementation in 2020: • Continue strengthening of marketing strategy and further increase marketing communication • Launch Dekosol sun screening in majority of Hemtex stores during Q1-2020 • Phase in a joint assortment based on best pra
Slide 6: Autostore investment
Autostore investment Increasing capacity and reducing costs to support online growth • Kid has signed a contract to establish an Autostore for 30,000 boxes at the Lier warehouse • The total investment will be MNOK 26 and delivery will take place in H1 2020. The investment will be financed with a new
Slide 7: Hemtex 24H
Hemtex 24H New business model with ICA Gross margin effect • B2B solution designed and sourced by ICA (MSEK) Q3 2018 Q3 2019 Hemtex for wholesale retailers, currently Kesko and ICA Revenue 0.0 22.9 • Successfully re-launched in 85 ICA Gross profit 0.4 7.1 Maxi stores in Sweden during Q3 • ICA contra
Slide 8: Pan-Nordic presence
Pan-Nordic presence 280 Store information Q3 • Kid Interior (144 stores): 119 – Refurbishments: Kirkeveien (Oslo) – Store openings: Xhibition Bergen – No stores were closed in Q3 12 • Hemtex (136 stores, incl. 12 franchise stores): 144 – Refurbishments: Kampii (Finland) – Relocations: Norrköping and
Slide 9: Revenues and market share
Revenues and market share Q3 revenues increased by 70.0 % (7.1 %) Revenue (MNOK) Like-for-like growth (%) • Kid Interior revenue growth of 4.6% (7.1%) in Q3 • One additional shopping day compared to Q3 2018 • Like-for-like growth of 2.0% (5.6%) including 626 11,0 % online sales 542 241 • Online sale
Slide 10: Gross margin
Gross margin Gross margin of 59.5% in Q3 Gross margins in 2018 and 2019* • Gross margin was 59.5 % for the quarter, down by 3.6 pp from Q3 2018 61,5% 62,6% 63,1% 59,5% 60,4% 58,4% 60,5% • Gross margin for the group negatively impacted by new derivatives contracts entered into ultimo May due to the a
Slide 11: EBITDA
EBITDA Adj. EBITDA margin excl. IFRS 16 effects of 12.0% (21.4 %) in Q3 Adjusted EBITDA 2018 and 2019* • Adj. EBITDA excl. IFRS16 effects of MNOK 75.3 (78.9) for the 144,0 141,3 group in Q3 2019. • EBITDA is adjusted for MNOK 3.1 related to integration costs for the group. Integration costs are not
Slide 12: Income statement
Income statement Q3 2019 Q3 2018 *Q1-Q3 2019 Q1-Q3 2018 (Amounts in NOK thousand) Adj Net profit margin of 6.8% (13.9 %) in Q3 excl. IFRS 16 IAS 17 excl. IFRS 16 IAS 17 Revenue 625,9 368,1 1 352,7 924,5 • Depreciation increased due to recent years’ COGS -253,2 -135,8 -531,2 -358,7 Gross profit 372,7
Slide 13: Cash flow
Cash flow Q3 2019 Q3 2018 * Q1-Q3 2019 Q1-Q3 2018 FY 2018 (Amounts in MNOK) IAS 17 IAS 17 IAS 17 IAS 17 IAS 17 NIBD/adj EBITDA excl. IFRS 16 of 2.4 (1.6) Net cash flow from operations 14,5 83,0 -108,1 8,5 265,2 Net Cash flow from investments -19,1 -4,9 -46,0 -23,9 0,0 • Cash flow from operations neg
Slide 14: Segment: Kid Interior
Segment: Kid Interior Q3 2019 Q1-Q3 2019 (Amounts in NOK millions) excl. IFRS 16 Q3 2018 excl. IFRS 16 Q1-Q3 2018 FY 2018 Revenue 384,9 368,1 1 004,3 924,5 1 466,7 Revenue growth 4,6 % 7,1 % 8,6 % 5,5 % 6,2 % LFL growth including online sales 2,0 % 5,6 % 5,6 % 2,2 % 3,1 % COGS -150,6 -135,8 -389,2 -
Slide 15: Segment: Hemtex
Segment: Hemtex * *Q3 2019 *Q1-Q3 2019 (Amounts in NOK millions) excl. IFRS 16 Q3 2018 excl. IFRS 16 Q1-Q3 2018 FY 2018 Revenue 241,0 348,4 Revenue growth ** 11,1 % 6,7 % LFL growth including online sales ** 3,2 % 3.3.% COGS -98,1 -136,6 Gross profit 142,9 211,8 Gross margin (%) 59,3 % 60,8 % Other
Slide 16: Half-year dividend
Half-year dividend Dividend of NOK 1.2 per share • The Board of Directors has made a decision to pay a half-year dividend of NOK 1.20 per share for 2018 (31% of adjusted net income* for last twelve months) • The dividend is in line with the current dividend policy, targeting 60-80% of annual adjuste
Slide 17: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Focus on predictable logistics operations for Hemtex going forward. In H1 2020 Hemtex will move to new third party logistics provider • Kid has signed a lease contract for a new store in Bogstadveien (Oslo) which will open in Q4 2019 • Digital
Slide 18: Q&A
QzA Kid INTERIOR
Slide 19: Income statement
Income statement Q3 * 2019 IFRS 16 Q3 2019 Q3 2018 Q1-Q3 * 2019 IFRS 16 Q1-Q3 2019Q1-Q3 2018 (Amounts in MNOK) IFRS 16 Effects IAS 17 IAS 17 IFRS 16 Effects IAS 17 IAS 17 Revenue 625,9 0 625,9 368,1 1 352,7 0,0 1 352,7 924,5 COGS -253,2 0,0 -253,2 -135,8 -531,2 0,0 -531,2 -358,7 Gross profit 372,7 0
Slide 20: Cash flow
Cash flow (Amounts in MNOK) * Q3 2019 IFRS 16 Q3 2019 Q3 2018 *Q1-Q3 2019 IFRS 16 Q1-Q3 2019 Q1-Q3 2018 FY 2018 IFRS 16 Effects IAS 17 IAS 17 IFRS 16 Effects IAS 17 IAS 17 IAS 17 Net cash flow from operaions 90,8 76,3 14,5 83,0 74,7 182,8 -108,1 8,5 265,2 Net Cash flow from investments -19,1 0,0 -19
Slide 21: Segment: Kid Interior
Segment: Kid Interior Q3 2019 Q1-Q3 2019 (Amounts in NOK millions) * Q3 2019 excl. IFRS 16 Q3 2018 *Q1-Q3 2019 excl. IFRS 16 Q1-Q3 2018 FY 2018 Revenue 384,9 384,9 368,1 1 004,3 1 004,3 924,5 1 466,7 Revenue growth 4,6 % 4,6 % 7,1 % 8,6 % 8,6 % 5,5 % 6,2 % LFL growth including online sales 2,0 % 2,0
Slide 22: Segment: Hemtex
Segment: Hemtex * Q3 2019 *Q1-Q3 2019 (Amounts in NOK millions) * Q3 2019 excl. IFRS 16 Q3 2018 *Q1-Q3 2019 excl. IFRS 16 Q1-Q3 2018 FY 2018 Revenue 241,0 241,0 - 348,4 348,4 - - Revenue growth ** 11,1 % 11,1 % - 6,7 % 6,7 % - - LFL growth including online sales ** 3,2 % 3,2 % - 3.3.% 3.3.% - - COGS
Slide 23: Adjusted EBITDA
Adjusted EBITDA Adjustments overview Q3 Q3 Q1-Q3 Q1-Q3 FY (MNOK) 2019 2018 2019 2018 2018 Transaction cost related to 0,9 8,8 Hemtex acquisition* Intergration cost related to 2,3 3,7 Hemtex acquisition EBITDA and EBIT adjustments 3,1 12,5 Profit adjustments before tax 3,1 12,5 Tax effects on adjustm