Kid Asa · OSL:KID
Kid Asa — Q3 2021 Earnings Presentation
20 slides from Kid Asa's earnings presentation, Nov 4, 2021
Slide 1: Kid ASA Q3 2021
Kid ASA 4 November 2021 Q3 2021 Presentation available at investor.kid.no
Slide 2: Financial third quarter in brief
Financial third quarter in brief • 6th consecutive quarter with year-on-year increased Earnings Per Share • Group revenues were positive following a strong quarter in Hemtex. Last year’s extraordinary growth in Norway proved to be a challenge to exceed • LFL group revenues increased by 0.1%1 (16.6%1
Slide 3: Operational focus in Q3
Operational focus in Q3 • Integration of Hemtex continues according to our plan – Introducing more Kid Interior products and product categories – Refurbishing and upgrading the store portfolio is driving growth – Upgraded stores generated 13% higher growth than the rest of the store portfolio • New
Slide 4: Revenues
Revenues Group revenues increased by 3.6%¹ (11.5%¹ ) Revenue (MNOK) Group Like-for-like growth (%) • Group like-for-like increased by 0.1% (16.6%) including online sales • Kid Interior revenue decline of -3.9% (22.1%) • Like-for-like decline of -7.1% (20.9%) including online sales • Online sales gro
Slide 5: Gross margin
Gross margin Group gross margin of 61.4% in Q3 Group gross margins in 2020 and 2021 • Group gross margin was 61.4 % for the quarter, down by 1.7 pp compared to Q3 2020 • Kid Interior decreased gross margin by -1.0 pp to 62.2% (63.2%) due to increased freight costs • Hemtex decreased gross margin by
Slide 6: EBITDA
EBITDA EBITDA of 219.6 (214.5) in Q3 EBITDA Q3 2021 versus Q3 2020 • EBITDA excl IFRS16 of MNOK 147.5 (MNOK 138.9) • Kid Interior EBITDA excl. IFRS16 of MNOK 106.8 (MNOK 115.1) • The reduction in EBITDA of MNOK 8.3 was mainly caused by reduced revenues, partly offset by lower employee bonus provisio
Slide 7: Cash flow
Cash flow Solid financial position and liquidity (Amounts in NOK million) • Cash flow from operations increased by MNOK 45.1 compared Q3 2021 Q3 2020 Q1-Q3 2021 Q1-Q3 2020 FY 2020 Net cash flow from operations 189,5 144,4 196,3 225,3 749,2 to Q3 2020 • Inventory level last year was affected by unusu
Slide 8: Semi-annual dividend
Semi-annual dividend Dividend of NOK 4.60 per share • The Board of Directors has decided to pay a half-year dividend of NOK 4.60 per share as a prepayment on the fiscal year 2021, representing 50% of adjusted net income for the last twelve months • Following the Q4 2021 results, the board of directo
Slide 9: Outlook
Outlook • Well prepared for the Christmas shopping season • 5 new stores to open in Q4 2021 of which 4 are in Norway and 1 in Sweden • Unstable, global freight situation, especially regarding shipments from China, with increased spot rates • 7-9x higher rates than seen before the pandemic • Freight
Slide 10: New warehouse in Borås, Sweden
New warehouse in Borås, Sweden • The warehouse will enable the Kid Group to operate more cost efficiently, reduce operational risk and support further growth • A 50/50 Joint Venture (JV) controlled by Kid ASA and Fabritius AS to purchase a plot (of land) of 45,000 square meters at Viared, Borås muni
Slide 11: Q&A
Q&A
Slide 12: Increased store portfolio activity
Increased store portfolio activity 269 Completed year to date Signed, but not yet completed NO: Rortunet (Q4 21) NO: Holmestrand (Q1 21) NO: Mosjøen (Q4 21) 107* NO: Digerneset (Q2 21) NO: Storgata, Oslo (Q4 21) SE: Amiralen, Karlskrona (Q2 21) NO: Holmlia (Q4 21) New stores SE: Gustav Adolfs Torg,
Slide 13: Segment: Kid Interior
Segment: Kid Interior (Amounts in NOK millions) Q3 2021 Q3 2020 ¹ Q1-Q3 2021 Q1-Q3 2020 ¹ FY 2020 ¹ Revenue 451,7 470,1 1 196,1 1 168,7 1 862,8 Revenue growth -3,9% 22,1 % 2,3 % 16,4 % 16,0 % LFL growth including online sales -7,1% 20,9 % -0,6% 15,5 % 14,8 % COGS -170,7 -173,0 -450,4 -448,6 -703,1 G
Slide 14: Segment: Hemtex
Segment: Hemtex (Amounts in NOK millions) Q3 2021 Q3 2020 ¹ Q1-Q3 2021 Q1-Q3 2020 ¹ FY 2020 ¹ Revenue 298,9 258,8 800,6 728,8 1 131,8 Revenue growth ² 17,4 % -3,7% 10,7 % 5,2 % 1,1 % LFL growth including online sales ² 14,6 % 9,2 % 10,9 % 11,9 % 6,7 % COGS -118,8 -95,9 -306,6 -270,1 -420,7 Gross pro
Slide 15: Income statement
Income statement (Amounts in NOK thousand) Q3 2021 Q3 2020 Q1-Q3 2021 Q1-Q3 2020 Revenue 750,6 728,9 1 996,7 1 897,5 COGS -289,4 -269,0 -757,0 -723,5 Gross profit 461,2 460,0 1 239,7 1 174,0 Gross margin (%) 61,4 % 63,1 % 62,1 % 61,9 % Other operating revenue 1,0 0,4 3,8 0,7 OPEX -242,6 -245,8 -738,
Slide 16: Statement of financial position
Statement of financial position (Amounts in NOK thousand) Note 30.09.2021 30.09.2020 31.12.2020 (Amounts in NOK thousand) Note 30.09.2021 30.09.2020 31.12.2020 Assets Unaudited Unaudited Audited Equity and liabilities Unaudited Unaudited Audited Goodwill 9 69 247 72 737 72 280 Share capital 48 770 4
Slide 17: Allocated segment costs
Allocated segment costs Segment allocated 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 3,6 3,2 2,1 9,5 10,0 benefits expense Segment allocated other operating 1,7 0,1 1
Slide 18: 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 % -3,9 % 2021 6,4 % 7,7 % 17,4 % Like-for-like growth Lik
Slide 19: 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 79 227 2021 89 90 92 271 Number of store projects Number of store projects 2020 Q1 Q2 Q3 Q4 Total 2020 Q1 Q2 Q3 Q4 To
Slide 20: 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