Slide 1: Kid ASA Q2 2021
Kid ASA 20 August 2021 Q2 2021 Presentation available at investor.kid.no
Slide 2: Financial second quarter in brief
Financial second quarter in brief • Positive revenue development on top of last year’s extraordinary growth, despite negative impact from governmental Covid-19 restrictions, including store closures in Norway and Estonia during April • LFL group revenues increased by 2.9%1 (23.6%1) • Negative LFL gr
Slide 3: H1 2018-2021 Revenue and EBITDA ex IFRS16
H1 2018-2021 Revenue¹ EBITDA ex IFRS16¹ CAGR Kid Interior CAGR Kid Interior 2018-2021 2018-2021 10% 54% CAGR Group revenue 31%¹ CAGR Group EBITDA 68%¹ CAGR Like-for-like growth 2018-2021 of 8.0%² Figures in MNOK 1) Hemtex figures are included from acquisition date 15 May 2019 3 Kid ASA Q2 2021 2) Pr
Slide 4: Operational focus in Q2
Operational focus in Q2 • Integration of Hemtex continues according to our plan – Reorganised and centralised the marketing function for Kid Interior and Hemtex to realise cost synergies and achieve a more integrated and common market approach – Kitchen department in Hemtex stores have been upgraded
Slide 5: Revenues
Revenues Group revenues increased by 3.9%¹ (22.8%¹ ) Revenue (MNOK) Group Like-for-like growth (%) • Group like-for-like increased by 2.9% (23.6%) including online sales • Kid Interior revenue growth of 1.7% (28.0%) • Like-for-like growth of -0.9% (27.1%) including online sales • Online sales growth
Slide 6: Gross margin
Gross margin Group gross margin of 63.7% in Q2 Group gross margins in 2020 and 2021 • Group gross margin was 63.7 % for the quarter, up by 1.8 pp • Kid Interior increased gross margin by 1.9 pp to 63.5% (61.6%) due to the effect of last year’s price adjustments, less rebating due to strong demand, i
Slide 7: EBITDA
EBITDA EBITDA of 172.5 (176.0) in Q2 EBITDA Q2 2021 versus Q2 2020 • EBITDA excl IFRS16 of MNOK 102.2 (MNOK 104.6) • Kid Interior EBITDA excl. IFRS16 of MNOK 79.2 (MNOK 78.8) • OPEX increased due to higher IT-costs, volume-driven online distribution cost and warehouse costs due to COVID-19 regulatio
Slide 8: Cash flow
Cash flow (Amounts in NOK million) Solid financial position and liquidity Q2 2021 Q2 2020 H1 2021 H1 2020 FY 2020 Net cash flow from operations 112,6 256,1 6,8 80,9 749,2 • Cash flow from operations reduced by MNOK 143.5 compared to Q2 2020 Net Cash flow from investments -23,0 -16,8 -36,6 -25,0 -65,
Slide 9: Increased store portfolio activity
Increased store portfolio activity 279 Completed year to date Signed, but not yet completed NO: Rortunet (Q4 21) NO: Mosjøen (Q4 21) 117 NO: Holmestrand (Q1 21) NO: Storgata, Oslo (Q4 21) NO: Digerneset (Q2 21) NO: Skøyen (Q2 22) New stores SE: Amiralen, Karlskrona (Q2 21) NO: Grünerløkka (Q4 23) NO
Slide 10: Outlook
Outlook • 5 new stores are currently expected to open in 2021 • Extended assortment for outdoor furniture proven successful in Norway and following a recent pilot test in Sweden, we intend to launch this category in Hemtex next year • Ongoing development of the new online platform for the group to g
Slide 11: Q&A
Q&A
Slide 12: Segment: Kid Interior
Segment: Kid Interior (Amounts in NOK millions) Q2 2021 Q2 2020 ¹ H1 2021 H1 2020 ¹ FY 2020 ¹ Revenue 418,4 411,5 744,5 698,6 1 862,8 Revenue growth 1,7 % 28,0 % 6,6 % 12,8 % 16,0 % LFL growth including online sales -0,9% 27,1 % 3,7 % 12,1 % 14,8 % COGS -152,9 -157,9 -279,7 -275,6 -703,1 Gross profi
Slide 13: Segment: Hemtex
Segment: Hemtex (Amounts in NOK millions) Q2 2021 Q2 2020 ¹ H1 2021 H1 2020 ¹ FY 2020 ¹ Revenue 257,9 249,0 501,7 469,9 1 131,8 Revenue growth ² 7,7 % 14,7 % 7,1 % 10,7 % 1,1 % LFL growth including online sales ² 9,8 % 18,0 % 8,8 % 13,0 % 6,7 % COGS -92,7 -93,2 -187,9 -174,1 -420,7 Gross profit 165,
Slide 14: Income statement
Income statement (Amounts in NOK thousand) Q2 2021 Q2 2020 H1 2021 H1 2020 Revenue 676,3 660,5 1 246,1 1 168,5 COGS -245,5 -251,8 -467,6 -454,5 Gross profit 430,8 408,7 778,5 714,0 Gross margin (%) 63,7 % 61,9 % 62,5 % 61,1 % Other operating revenue 1,4 0,0 2,7 0,4 OPEX -259,7 -232,7 -496,0 -474,9 E
Slide 15: Statement of financial position
Statement of financial position (Amounts in NOK thousand) Note 30.06.2021 30.06.2020 31.12.2020 (Amounts in NOK thousand) Note 30.06.2021 30.06.2020 31.12.2020 Equity and liabilities Unaudited Unaudited Audited Assets Unaudited Unaudited Audited Goodwill 9 69 684 72 024 72 280 Share capital 48 770 4
Slide 16: Allocated segment costs
Allocated segment costs Total year Total year (MNOK) Q1 2021 Q1 2020 Q2 2021 Q2 2020 Q3 2021 Q3 2020 Q4 2021 Q4 2020 2021 2020 Kid ASA and Kid Interior Segment allocated employee 0,8 2,3 5,2 2,4 3,2 2,1 5,9 10,0 benefits expense Segment allocated other operating 1,7 0,1 1,0 0,3 0,3 1,0 2,7 1,7 expen
Slide 17: Quarterly revenue growth
Quarterly revenue growth Kid Interior Hemtex Total growth Total growth Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 2019 8,4 % 14,2 % 4,6 % 11,0 % 2019 -1,8 % 11,1 % 19,6 % 2020 -3,6 % 28,0 % 22,1 % 15,3 % 2020 6,6 % 14,7 % -3,7 % -5,7 % 2021 13,6 % 1,7 % 2021 6,4 % 7,7 % Like-for-like growth Like-for-like gro
Slide 18: Sales days and stores
Sales days and stores Kid Interior Hemtex Number of sales days Number of sales days Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2020 77 72 79 80 308 2020 90 90 92 91 363 2021 77 71 148 2021 89 90 179 Number of store projects Number of store projects 2020 Q1 Q2 Q3 Q4 Total 2020 Q1 Q2 Q3 Q4 Total Ne
Slide 19: Financial Objectives
Financial Objectives Financial performance Store portfolio Dividend Policy & capital structure • An optimized portfolio of • Kid target a pay-out ratio of • Like-for-Like growth of Stores approximately 300 fully 80-100% of adjusted net Sales 3 – 4% in a normalised owned stores profit market • Semi-a