Slide 1: Kid ASA Q2 2016
Kid ASA 16 August 2016 Q2 2016 Presentation available at investor.kid.no
Slide 2: Highlights Q2 2016
Highlights Q2 2016 • Revenues increase of 12.6% compared to Q2 2015 • Three additional shopping days due to timing of Easter • LFL growth of 8.9% including online sales • Online sales growth of 65.7% • Gross margin of 59.4% (60.3% LY) • Adjusted EBITDA of MNOK 18.8 (MNOK 12.1 LY) • Employee benefits
Slide 3: Revenues and market share
Revenues and market share Q2 revenues increased by 12.6% Revenue Market • Three more shopping days due to 12,6 % timing of Easter 433 • Like-for-like growth of 8.9%. Definition 8,5 % of like-for-like stores now includes 288 online store 265,5 6,1 % 232230,6 236 • 4 new stores since Q2 2015 3,3 % • O
Slide 4: Operational focus
Operational focus Growth enhancing initiatives in Q2: • Kid ASA has signed a rental agreement for an expansion of the headquarter and logistics center in Lier • 3.735 sqm additional warehouse to be finalized in December 2016 • New mezzanine of 793 sqm in the current warehouse to be finalized in Marc
Slide 5: Operational focus: store portfolio development
Operational focus Store portfolio development: • New stores opened in Mortensrud (Oslo) and Trekanten (Asker) • Refurbishment of Moa (Ålesund) and Stovner (Oslo) • Relocated the store in Alna (Oslo) • All top 10 stores are now refurbished 5 Kid ASA Q2-2016
Slide 6: Operational focus: retail sales training
Operational focus Retail sales training • Retail sales training is a key growth initiative for Kid ASA. Benchmark of store level service indicate potential compared to broader retail standards • Training application for smart phones and tablets launched for store employees during Q2. The application
Slide 7: Financial focus
Financial focus New lending agreement with DNB Bank • New lending agreement signed with DNB Bank for the MNOK 525 long term debt facility from May 2017 to May 2020 • No mandatory installments • Comfortable headroom with respect to covenants • A small increase in interest margin based on longer durat
Slide 8: Gross margin
Gross margin Gross margin decline of 0.9 pp in Q2 Gross margin in 2015 and 2016 • Gross margin including realized currency effects was 60,3% 59,4% 60,8% 60,3% 59.4% for the quarter, a decrease of 0.9 percentage 57,9% 58,5% points from Q2-2015 • The timing of the accounting recognition of loss/gain f
Slide 9: Adjusted EBITDA
Adjusted EBITDA* Adjusted EBITDA of MNOK 18.8 in Q2 (MNOK 12.1) Adjusted EBITDA 2015 and 2016 • EBITDA was positively affected by a higher like-for- like growth, but negatively affected by a drop in gross 99,6 margin • Employee benefits expenses increased by 7.9% in Q2 2016, in line with our expecta
Slide 10: Income statement
Income statement Income statement* Amounts in MNOK Q2 2016 Q2 2015 H1 2016 H1 2015 Revenue 265,5 235,8 496,0 467,7 COGS including realized FX-effects -107,9 -93,6 -203,6 -191,2 Gross profit 157,6 142,2 292,4 276,5 Q2 adjusted net profit of MNOK 6.6 (MNOK 1.1) Gross margin (%) 59,4 % 60,3 % 59,0 % 59
Slide 11: Cash flow
Cash flow Cash flow Amounts in MNOK Net cash flow from operations Q2 2016 Q2 2015 4,5 -3,9 H1 2016 H1 2015 -89,6 -92,1 Net cash flow from investments -8,5 -14,2 -17,4 -24,1 Net cash flow from financing -64,4 15,4 -68,1 25,7 NIBD/EBITDA OF 2.8 PER 30.06.2016 Net change in cash and cash equivalents -6
Slide 12: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Focus on core business –back to school and autumn campaigns launched in Q3 • Growth potential in the third quarter compared to last year, which performed below expectation • Solid pipeline for three new store openings during the second half of
Slide 13: Q&A
Q&A 13 Kid ASA Q2-2016
Slide 14: Appendix
APPENDIX 14
Slide 15: Adjustments overview
Adjustments overview Comments Adjustments overview (MNOK) Q2 2016 Q2 2015 H1 2016 H1 2015 FY 2015 1. Kid relocated to a new warehouse in June 2015 and 1 Adj: Cost of relocation to new warehouse 3,7 3,7 3,7 consider costs related to this as one-off 2. Costs related to the IPO in 2015 is considered on