Slide 1: Kid ASA Q3 2016
Kid ASA 10 November 2016 Q3 2016 Presentation available at investor.kid.no
Slide 2: Highlights Q3 2016
Highlights Q3 2016 • Revenues increased by 9.2% compared to Q3 2015 • LFL growth of 6.7% including online sales • Online sales growth of 59.7% • Gross margin of 59.1% (60.8%) • Adjusted EBITDA of MNOK 51.6 (MNOK 48.6) • 5 new stores since Q3 2015 • NIBD/EBITDA of 2.7 (4.0) 2 Kid ASA Q3 2016
Slide 3: Revenues and market share
Revenues and market share Q3 revenues increased by 9.2% Revenue Market • High growth in August due to negative 12,6 % weather impact last year 433 • Like-for-like growth of 6.7% including 9,2 % 8,5 % online sales 314 288 • Online sales growth of 59.7% 232 231 236 265 6,1 % • 5 new stores since Q3 20
Slide 4: Operational focus
Operational focus Q3 operational summary: • Customer loyalty program now have more than 550.000 members • Online store under continuous development. Vipps launched as mobile payment service in Q3 • The Hanjin (shipping line) bankruptcy in Q3 will have very little impact on Kid • CEO Kjersti Hobøl wa
Slide 5: Operational focus: store portfolio development
Operational focus Store portfolio development: • New stores opened in Bekkestua (Oslo) and Knarvik • Slependen (Oslo) was closed in accordance with plan • 133 physical stores at the end of the quarter 5 Kid ASA Q3 2016
Slide 6: Operational focus: Corporate Social Responsibility
Operational focus Corporate Social Responsibility Kid has a plan to ensure 100 percent sustainability and responsibility in the entire value chain, from the farm to our stores. In the third quarter we made the following progress: • Started to source cotton certified by Cotton Made in Africa as the f
Slide 7: Gross margin
Gross margin Gross margin decline of 1.7 pp in Q2 (IFRS) Gross margins in 2015 and 2016 • Gross margin including realized currency effects was 60,3% 59,4% 60,8% 60,3% 59.1% for the quarter, a decrease of 1.7 pp from Q3 57,9% 58,5% 59,1% 2015 • Kid ASA is planning an early adoption of the new IFRS 9
Slide 8: Adjusted EBITDA
Adjusted EBITDA* Adjusted EBITDA of MNOK 51.6 in Q3 (MNOK 48.6) 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 8.7% in Q3 2016, in line with our expectat
Slide 9: Income statement
Income statement Income statement* Amounts in MNOK Q3 2016 Q3 2015 Q1-Q3 2016 Q1-Q3 2015 Revenue 314,1 287,6 810,1 755,3 COGS including realized FX-effects -128,6 -112,8 -332,1 -304,0 Q3 adjusted net profit of MNOK 30.7 (MNOK 28.1) Gross profit 185,5 174,8 478,0 451,3 Gross margin (%) 59,1 % 60,8 %
Slide 10: Cash flow
Cash flow Cash flow Amounts in MNOK Net cash flow from operations Q3 2016 17,5 Q3 2015 -10,9 Q1-Q3 2016 Q1-Q3 2015 -72,1 -103,0 Net cash flow from investments -9,0 -7,2 -26,4 -31,3 Net cash flow from financing -3,2 21,5 -71,3 47,1 NIBD/EBITDA OF 2.7 PER 30.09.2016 Net change in cash and cash equival
Slide 11: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Focus on core business – well prepared Christmas assortment and marketing campaigns for our most important season • Inventory optimization initiative is ready to be launched. Increased volumes and availability on base assortment and best seller
Slide 12: Q&A
Q&A 12 Kid ASA Q2-2016
Slide 13: Appendix
= Ww Miter ea Kid INTERIOR
Slide 14: Adjustments overview
Adjustments overview Comments Q3 Q3 Q1-Q3 Q1-Q3 FY 1. Kid relocated to a new warehouse in June 2015 and Adjustments overview (MNOK) 2016 2015 2016 2015 2015 consider costs related to this as one-off 1 Adj: Cost of relocation to new warehouse - - - 3,7 3,7 2. Costs related to the IPO in 2015 is consi