Slide 1: Kid ASA Q1 2016
Kid ASA 11 May 2016 Q1 2016 Presentation available at investor.kid.no
Slide 2: Highlights Q1 2016
Highlights Q1 2016 • Revenues declined 0.6 % compared to Q1 2015 – Two less shopping days due to timing of Easter – Revenue growth of 3.9% per April • Gross margin of 58.5% (57.9% LY) • Adjusted EBITDA of MNOK 0.5 (MNOK 9.0 LY) – Employee benefits expense increased by 6.7%, where 2.5% of the increas
Slide 3: Revenues and market share
Revenues and market share Q1 revenues declined by 0.6% Revenue Market • Two less shopping days due to timing of 8,5 % Easter 433 • Like-for-like decline of 4.5% 4,3 % • Increase of 4 new stores since Q1 2015 288 3,3 % • Online sales growth of 32.2% 232 231 236 • Home textile market performed below b
Slide 4: Revenues as of April
Revenues as of April As of April revenues are up 3.9% YTD compared to 2015 • Due to the revenue effect following the timing of Easter, Kid ASA has decided to announce revenues per April in the Q1 report • There was three additional shopping days in April 2016 compared to April 2015 (one additional s
Slide 5: Operational focus
Operational focus Growth enhancing initiatives in Q1: • Ongoing adjustments of both prices and assortment to deliver on our “value for money” proposition while achieving the targeted gross margins • Recruiting members to our customer loyalty program - 315,000 members at the end of the first quarter
Slide 6: Operational focus
Operational focus We have developed the store portfolio by: • Finalizing refurbishments of two of our largest stores. As of April, 9 of our top 10 stores have been refurbished • Relocating the store in Porgrunn • Finalizing new stores in Asker (Oslo) and Mortensrud (Oslo) with opening in April • Act
Slide 7: Operational focus
Operational focus Key features in the new online store: • Responsive design enables shopping from smart phones and tablets • In-store pickup of online orders with free shipping • Dedicated site for business customers • Site optimized for search engines • Improved response times and site navigation 7
Slide 8: Gross margin
Gross margin Gross margin improvement of 0.6 pp in Q1 Gross margin in 2015 and 2016 • Gross margin including realized currency effects was 58.5% for the quarter, an improvement of 0.6 57,9% 58,5% 60,3% 60,8% 60,3% percentage points from Q1-2015 • Following the weakening of the Norwegian Krone (NOK)
Slide 9: Adjusted EBITDA
Adjusted EBITDA* Adjusted EBITDA of MNOK 0.5 in Q1 (MNOK 9.0) Adjusted EBITDA 2015 and 2016 • EBITDA negatively impacted by the Easter revenue effect 99,6 • Cost base generally less flexible in the first quarter • Employee benefits expense increased by 6.7% in Q1 2016 • 2.5% of the increase was due
Slide 10: Income statement
Income statement Income statement* Amounts in MNOK Revenue Q1 2016 230,6 Q1 2015 231,9 FY 2015 1 188,4 COGS including realized FX-effects -95,7 -97,7 -475,9 Gross profit 134,9 134,2 712,6 Q1 adjusted net loss of MNOK 7.1 (MNOK -1.1) Gross margin (%) 58,5 % 57,9 % 60,0 % • Depreciation increased due
Slide 11: Cash flow
Cash flow Cash flow Amounts in MNOK Net cash flow from operations Q1 2016 -94,2 Q1 2015 -88,1 FY 2015 128,6 Net cash flow from investments -8,8 -9,9 -40,6 Net cash flow from financing -3,7 10,3 44,1 NIBD/EBITDA OF 2.5 PER 31.03.2016 Net change in cash and cash equivalents -106,7 -87,7 132,1 Cash and
Slide 12: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Full focus on core business – summer and back to school campaign are ready to launch • Final development of the new online store to be completed within July 2016 • Increased focus on store level service. Simulation based training ready to launc
Slide 13: Q&A
Q&A 13 Kid ASA Q1-2016
Slide 14: Appendix
APPENDIX 14
Slide 15: Adjustments overview
Adjustments overview Adjustments overview (MNOK) Q1 2016 Q1 2015 FY 2015 Comments 1. Kid relocated to a new warehouse in June 2015 and 1 Adj: Cost of relocation to new warehouse 3,7 considers costs related to this as one-off 2. Costs related to the IPO in 2015 is considered one-off 2 Adj: Cost relat