Slide 1: Kid ASA Q1 2022
Kid ASA 19 May 2022 Q1 2022 Presentation available at investor.kid.no
Slide 2: First quarter in brief
First quarter in brief • Group revenues1 increased by 9.3% (10.4%) and LFL1 by 7.3% (9.3%) • Gross margin increased by 0.2 percentage points despite increased freight costs and increased costs of raw materials • EBITDA decreased by MNOK 2.3 to MNOK 110.4, mainly due to one-off Covid-19 cost reductio
Slide 3: Operational focus in Q1
Operational focus in Q1 • Earlier deliveries of goods to mitigate risk of delays • Maintained focus on deliveries going forward, with earlier delivery schedules on autumn collections now expected to arrive in July (normally August) • Signed agreement with Element Logic to install Autostore inventory
Slide 4: Revenues Q1 2022
Revenues Q1 2022 Group revenues increased by 9.3%¹ (10.4%¹ ) Revenues (MNOK) Group like-for-like growth (%) • Group like-for-like revenues increased by 7.3% (9.3%) including online sales • Last year’s COVID-19 restrictions with temporary store closures, as well as the timing of Easter, make comparis
Slide 5: Gross margin
Gross margin Increased gross margin in Q1 Group gross margins • Group gross margin was 61.2 % for the quarter, up by 0.2 pp compared to Q1 2021 despite increased freight costs and increased costs of raw materials • Kid Interior increased gross margin by 0.3 pp to 61.4% (61.1%) • Hemtex had a stable
Slide 6: EBITDA
EBITDA EBITDA of 110.4 (112.7) in Q1 EBITDA Q1 2022 vs. 2021 • EBITDA decreased by MNOK 2.3 to MNOK 110.4 • Cost increase of MNOK 9.7 related to bonus provision reversal of MNOK 1.6 (MNOK 5.4) and less Covid-19 related cost reduction effects of MNOK 1.3 (MNOK 7.2) • Increased OPEX due to planned mar
Slide 7: Cash flow
Cash flow (Amounts in NOK million) Q1 2022 Q1 2021 FY 2021 Solid financial position and liquidity Net cash flow from operations -191,6 -105,8 673,7 • Cash flow from operations decreased by MNOK 85.8 compared Net Cash flow from investments -38,1 -13,6 -92,6 to Q1 2022 Net cash flow from financing -5,
Slide 8: Growth strategy
Growth strategy LIKE-FOR-LIKE OMNICHANNEL STORE NETWORK Category development and New joint online platform Maintain an optimized store expansion launched in 2021 portfolio of up to 320 stores Development of store concept Improve utilization of customer Expansion plan for Finland and club and insight
Slide 9: Category development and expansion
Category development and expansion Category expansion is driving growth Revenue from new categories (MNOK) SEKNOK=1 • Categories launched since 2017 added 257 MNOK in revenues during 2021 Kid Interior Hemtex • These categories include kitchen accessories, lamps, 180 180 lightning and outdoor furnitu
Slide 10: Category development and expansion
Category development and expansion Lamps Carpets Furniture Kitchen accessories and food 10 Kid ASA Q1 2022
Slide 11: Store portfolio optimization
Store portfolio optimization Expanding store size 2021 revenue and contribution per store size* • Current categories and products needs at least 600 18,0 16,4 sqm to be displayed in physical stores. 16,0 15,0 14,0 • The store size of the current store portfolio is based 12,0 11,3 on historical categ
Slide 12: Store portfolio optimization
Store portfolio optimization Alignment of concepts based on Kid Interior Store size per segment* Sales/store Sales/SQM # stores Avg. SQM • Hemtex was acquired in May 2019, and had a (MNOK) (NOK) Hemtex 117 367 8.2 23.300 smaller store concept and assortment compared to Kid Interiør 147 458 11.6 25.7
Slide 13: Store portfolio optimization
Store portfolio optimization Refurbishment of stores Compounded annual growth, 2019-2021 • 8 Hemtex stores and 6 Kid Interior stores were refurbished with our newest store concept in 2020 and 9,8 % outperformed the remaining store portfolio (see figure) • 26 Hemtex stores has been upgraded to Kid st
Slide 14: Store portfolio expansion
Number of stores per quarter end Store portfolio expansion 272 Store expansion plan • Current store portfolio consist of 272 fully owned stores across the Nordics 106* • Payback time* including CAPEX and inventory build- up for the 10 stores opened in 2019 and 2020 was approximately 17 months 8 • Po
Slide 15: Financial Objectives
Financial Objectives FINANCIAL PERFORMANCE (FULL YEAR BASIS) STORE PORTFOLIO DIVIDEND POLICY & CAPITAL STRUCTURE • Kid target a pay-out ratio of 80- 100% of adjusted net profit • Like-for-Like growth of Sales 3-4% in a normalised market • An optimized portfolio of • Semi-annual dividend payments Sto
Slide 16: Q&A
Q&A
Slide 17: Store portfolio activity
Number of stores per quarter end Store portfolio activity Completed year to date Signed, but not yet completed 272 NO: Kolbotn (Q2 22) NO: Ullevål (Q4 22) 106* New stores NO: Skøyen (5 May 2022) NO: Grünerløkka (Q4 23) NO: Fredrikstad (Q4 23) 8 153 Closures SE: 2 stores SE: 1 store NO: 7 stores 5 Re
Slide 18: Segment: Kid Interior
Segment: Kid Interior (Amounts in NOK millions) Q1 2022 Q1 2021 FY 2021 Revenue 366,8 326,1 1 883,5 Revenue growth 12,5 % 13,6 % 1,1 % LFL growth including online sales 10,7 % 10,3 % -1,8% COGS -141,7 -126,9 -702,3 Gross profit 225,0 199,2 1 181,2 Gross margin (%) 61,4 % 61,1 % 62,7 % Other operatin
Slide 19: Segment: Hemtex
Segment: Hemtex (Amounts in NOK millions) Q1 2022 Q1 2021 FY 2021 Revenue 237,8 243,7 1 213,6 Revenue growth ¹ 4,8 % 6,4 % 10,1 % LFL growth including online sales ¹ 2,0 % 7,8 % 9,8 % COGS -92,8 -95,2 -457,2 Gross profit 145,1 148,6 756,4 Gross margin (%) 61,0 % 61,0 % 62,3 % Other operating revenue
Slide 20: Income statement
Income statement (Amounts in NOK thousand) Q1 2022 Q1 2021 FY 2021 Revenue 604,6 569,8 3 097,1 COGS -234,5 -222,0 -1 159,5 Gross profit 370,1 347,8 1 937,6 Gross margin (%) 61,2 % 61,0 % 62,6 % Other operating revenue 0,7 1,3 10,0 OPEX -260,4 -236,4 -1 070,0 EBITDA 110,4 112,7 877,6 EBITDA margin (%
Slide 21: Statement of financial position
Statement of financial position (Amounts in NOK thousand) Note 31.03.2022 31.03.2021 31.12.2021 (Amounts in NOK thousand) Note 31.03.2022 31.03.2021 31.12.2021 Assets Unaudited Unaudited Audited Equity and liabilities Unaudited Unaudited Audited Goodwill 9 65 070 67 626 70 286 Share capital 48 770 4
Slide 22: Allocated segment costs
Allocated segment costs Segment allocated costs Total year Total year (MNOK) Q1 2022 Q1 2021 Q2 2022 Q2 2021 Q3 2022 Q3 2021 Q4 2022 Q4 2021 2022 2021 Kid ASA and Kid Interior Segment allocated employee 3,3 0,8 5,2 3,6 6,1 3,3 15,6 benefits expense Segment allocated other operating 0,6 1,7 1,0 1,3 2
Slide 23: Quarterly revenue growth
Quarterly revenue growth Kid Interior Hemtex Total growth Total growth Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 2020 -3,6 % 28,0 % 22,1 % 15,3 % 2020 6,6 % 14,7 % -3,7 % -5,7 % 2021 13,6 % 1,7 % -3,9 % -1,0 % 2021 6,4 % 7,7 % 17,4 % 9,0 % 2022 12,5 % 2022 4,8 % Like-for-like growth Like-for-like growth Yea
Slide 24: 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 2021 76 71 79 81 307 2021 89 90 92 91 362 2022 76 76 2022 89 89 Number of store projects Number of store projects 2021 Q1 Q2 Q3 Q4 Total 2021 Q1 Q2 Q3 Q4 Total New stores