Slide 1: Kid ASA Q4 2019
Kid ASA 26 February 2020 Q4 2019 Presentation available at investor.kid.no
Slide 2: Highlights Q4 2019
Highlights Q4 2019 • Revenues increased by 82.5% (7.2%) compared to Q4 2018 – Kid Interior revenue growth of 11.0% (like-for-like growth of 8.8%) – Hemtex revenue growth of 19.6% (like-for-like growth* of 22.0%) • Adjusted EBITDA excl. IFRS 16 of MNOK 229.3 (MNOK 141.3) – Kid Interior EBITDA ex. IFR
Slide 3: Operational focus in Q4
Operational focus in Q4 Operational focus for the Kid Group: • Growth across all categories in Kid Interior • Successful launch of “Moments”, a new concept for candles and napkins • The planned increase in inventory prior to Q4 has reduced out-of- stock situations and positively impacted growth • St
Slide 4: Hemtex integration according to plan
Hemtex integration according to plan Early growth initiatives implemented in 2019: • A selection of Kid products were tested in Hemtex during the quarter with convincing results. Common assortment will be phased in from Q3-2020. • Kid's marketing principles and channels successfully adapted • Kid’s
Slide 5: Pan-Nordic presence
Pan-Nordic presence 279 Store information Q4 • Kid Interior (144 stores): 119 – Refurbishments: Strømmen – Store openings: Bogstadveien Oslo and Kilden Hillevåg Stavanger – Store closings: Ski 11 • Hemtex (135 stores, incl. 12 franchise stores): 144 – Refurbishments: Farsta, Linköping Ikano, Mobilia
Slide 6: Revenues and market share
Revenues and market share Kid ASA Q4 revenues increased by 82.5 % (7.2 %) Revenue (MNOK) Like-for-like growth (%) • Kid Interior revenue growth of 11.0% (7.2%) in Q4 • Like-for-like growth of 8.8% (5.3%) including online sales • Online sales growth of 21.1 % (30.0 %) 22.0 % 989 • The index for sale
Slide 7: Gross margin
Gross margin Kid ASA gross margin of 60.1% in Q4 Kid ASA gross margins in 2018 and 2019* • Gross margin was 60.1 % for the quarter, down by 0.3 pp from Q4 2018 61.5% 62.6% 63.1% 59.5% 60.4% 60.1% • Gross margin for the group negatively impacted by new 58.4% 60.5% derivatives contracts entered into u
Slide 8: EBITDA
EBITDA Adj. EBITDA margin excl. IFRS 16 effects of 23.2% (26.0 %) in Q4 Adjusted EBITDA 2018 and 2019* • Adj. EBITDA excl. IFRS16 effects of MNOK 229.3 (141.3) for the group in Q4 2019 299.1 • EBITDA is adjusted for MNOK 1.6 related to integration costs for the group. Integration costs are not inclu
Slide 9: Income statement
Income statement Q4 2019 Q4 2018 *FY 2019 FY 2018 (Amounts in NOK thousand) Adj Net profit margin of 18.3% (18.4 %) in Q4 excl. IFRS 16 IAS 17 excl. IFRS 16 IAS 17 Revenue 989.5 542.2 2,342.2 1,466.7 • Depreciation increased due to inclusion of COGS -394.5 -214.6 -925.7 -573.2 Gross profit 595.0 327
Slide 10: Cash flow
Cash flow Q4 2019 Q4 2018 *FY 2019 FY 2018 (Amounts in MNOK) IAS 17 IAS 17 IAS 17 IAS 17 NIBD/adj EBITDA excl. IFRS 16 of 1.5 (1.3) Net cash flow from operations 387.0 256.7 278.5 265.2 Net Cash flow from investments -46.9 -13.4 -92.9 -37.3 • Cash flow from operations positively affected by increase
Slide 11: Segment: Kid Interior
Segment: Kid Interior Q4 2019 excl. FY 2019 excl. (Amounts in NOK millions) IFRS 16 Q4 2018 IFRS 16 FY 2018 Revenue 602.0 542.2 1,606.3 1,466.7 Revenue growth 11.0 % 7.2 % 9.5 % 6.2 % LFL growth including online sales 8.8 % 5.3 % 6.8 % 3.1 % COGS -233.4 -214.6 -622.6 -573.2 Gross profit 368.5 327.6
Slide 12: Segment: Hemtex
Segment: Hemtex * *Q4 2019 *FY 2019 excl. (Amounts in NOK millions) excl. IFRS 16 Q4 2018 IFRS 16 FY 2018 Revenue 387.5 - 735.9 - Revenue growth ** 19.6 % - 13.1 % - LFL growth including online sales ** 22.0 % - 12.5 % - COGS -153.9 - -290.5 - Gross profit 233.6 - 445.4 - Gross margin (%) 60.3 % - 6
Slide 13: Half-year dividend
Half-year dividend Dividend of NOK 2.4 per share • The Board of Directors will propose a half-year dividend of NOK 2.40 per share for 2019, corresponding to 41.7% of adjusted net income* for last twelve months • The dividend is in line with the current dividend policy, targeting 60- 80% of annual ad
Slide 14: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Increased confidence in Hemtex target of EBITDA MNOK 100 in 2021 • The transition to a common assortment in Q3-2020 is on track • Store refurbishment program in Hemtex on track for 2020 • The new Autostore in Lier, Norway fully operational in J
Slide 15: Appendix
QzA Kid INTERIOR Kid INTERIOR
Slide 16: Income statement
Income statement * Q4 2019 IFRS 16 Q4 2019 Q4 2018 *FY 2019 IFRS 16 FY 2019 FY 2018 (Amounts in MNOK) IFRS 16 Effects IAS 17 IAS 17 IFRS 16 Effects IAS 17 IAS 17 Revenue 989.5 0 989.5 542.2 2,342.2 0.0 2,342.2 1,466.7 COGS -394.5 0.0 -394.5 -214.6 -925.7 0.0 -925.7 -573.2 Gross profit 595.0 0.0 595.
Slide 17: Cash flow
Cash flow (Amounts in MNOK) *Q4 2019 IFRS 16 Q4 2019 Q4 2018 * FY 2019 IFRS 16 FY 2019 FY 2018 IFRS 16 Effects IAS 17 IAS 17 IFRS 16 Effects IAS 17 IAS 17 Net cash flow from operaions 449.2 62.3 387.0 256.7 523.6 245.1 278.5 265.2 Net Cash flow from investments -46.9 0.0 -46.9 -13.4 -92.9 0.0 -92.9
Slide 18: Segment: Kid Interior
Segment: Kid Interior Q4 2019 FY 2019 (Amounts in NOK millions) * Q4 2019 excl. IFRS 16 Q4 2018 *FY 2019 excl. IFRS 16 FY 2018 Revenue 602.0 602.0 542.2 1,606.3 1,606.3 1,466.7 Revenue growth 11.0 % 11.0 % 7.2 % 9.5 % 9.5 % 6.2 % LFL growth including online sales 8.8 % 8.8 % 5.3 % 6.8 % 6.8 % 3.1 %
Slide 19: Segment: Hemtex
Segment: Hemtex * Q4 2019 *FY 2019 (Amounts in NOK millions) *Q4 2019 excl. IFRS 16 Q4 2018 *FY 2019 excl. IFRS 16 FY 2018 Revenue 387.5 387.5 - 735.9 735.9 - Revenue growth ** 19.6 % 19.6 % - 13.1 % 13.1 % - LFL growth including online sales ** 22.0 % 22.0 % - 12.5 % 12.5 % - COGS -153.9 -153.9 - -
Slide 20: Adjusted EBITDA
Adjusted EBITDA Adjustments overview Q4 Q4 FY FY (MNOK) 2019 2018 2019 2018 Transaction cost related to 0.0 8.8 Hemtex acquisition* Intergration cost related to 1.6 5.3 Hemtex acquisition EBITDA and EBIT adjustments 1.6 14.1 Profit adjustments before tax 1.6 14.1 Tax effects on adjustments (22%) -0.