Slide 1: Kid ASA Q2 2019
Kid ASA 29 August 2019 Q2 2019 Presentation available at investor.kid.no
Slide 2: Highlights Q2 2019
Highlights Q2 2019 • Kid ASA acquired Hemtex AB on 14 May 2019, combining two regional champions within home textile and interior • New debt financing secured for the combined company • Revenues of MNOK 428.7* for the group. Kid Interior’s revenues increased by 14.2 % compared to Q2 2018 • Gross mar
Slide 3: Hemtex acquisition
Hemtex acquisition Strategic rational for Kid’s acquisition of Hemtex: • Combining two leading chains with complementary geographical presence across the Nordics • Building strong brand and customer loyalty from two brands associated with high quality and value for money • Substantially increase pro
Slide 4: Introducing segment reporting
Introducing segment reporting Legal structure and segment reporting • New segment structure: Kid ASA – The Kid Interior segment ("Kid Interior") relates to the operations in Norway – The Hemtex segment ("Hemtex") relates to the Kid Interiør AS Hemtex AB operations in Sweden, Finland and Estonia • Ki
Slide 5: Operational focus in Q2
Operational focus in Q2 Operational focus for the Kid Group: • Uninterrupted operations in Kid Interior, ccontinued focus on profitable growth in Norway • Quantum leap in Kid Interior’s ranking in Norsk Kundebarometer customer satisfaction survey. Kid is number one within the home textile and interi
Slide 6: Leading pan-Nordic presence
Leading pan-Nordic presence Store information* 283 • Kid Interior (143 stores): – Refurbishments: Stortorvet (Kongsberg), Kvadrat (Sandnes), Tiller (Trondheim), Vinterbro (Akershus), 123 Torvbyen (Fredrikstad), Farmandstredet (Tønsberg) and Rykkin (Akershus) – Relocations: Grimstad and Kristiansund
Slide 7: Revenues and market share
Revenues and market share Q2 revenues increased by 52.3 %* (1.1 %) Revenue (MNOK) Like-for-like growth (%) • Kid Interior revenue growth of 14.2% (1.1%) in Q2 • Like-for-like growth of 11.0% (-2.7%) including online sales • Online sales growth of 31.1 % (72.3 %) 542 11,0 % • Increased market share t
Slide 8: Gross margin
Gross margin Gross margin increase of 1.1 pp in Q2 Gross margins in 2018 and 2019* • Gross margin was 62.6 %* for the quarter, up by 1.1 pp from Q2 2018 61,5% 62,6% 63,1% 58,4% 60,5% 60,4% • Kid Interior had a gross margin of 62.4% (61.5%) in the quarter. Gross margin improvement was driven by price
Slide 9: EBITDA
EBITDA Adj. EBITDA margin excl. IFRS 16 effects of 8.1%* (7.1 %) in Q2 Adjusted EBITDA 2018 and 2019* • Adj. EBITDA excl. IFRS16 effects of MNOK 34.7* (20.1) for the 141,3 group in Q2 2019. OPEX is adjusted for MNOK 9.4 related to integration and transaction costs • Kid Interior EBITDA excl. IFRS16
Slide 10: Income statement
Income statement * Q2 2019 * H1 2019 (Amounts in NOK thousand) Q2 2018 H1 2018 Net profit margin of 1.5%* (1.9 %) in Q2 excl. IFRS 16 IAS 17 excl. IFRS 16 IAS 17 Revenue 428,8 281,5 726,8 556,4 • Depreciations increased due to last years’ COGS 160,2 108,5 278,0 222,8 CAPEX levels Gross profit 268,6
Slide 11: Cash flow
Cash flow *Q2 2019 Q2 2018 * H1 2019 H1 2018 FY 2018 (Amounts in MNOK) excl. IFRS 16 IAS 17 excl. IFRS 16 IAS 17 IAS 17 Cash flow from operations Net cash flow from operaions -31,9 -12,6 -115,5 -74,5 265,2 • Lower tax payments in Q2 compared to last Net Cash flow from investments -14,2 -13,9 -26,9 -
Slide 12: Segment: Kid Interior
Segment: Kid Interior Q2 2019 H1 2019 excl. (Amounts in NOK millions) excl. IFRS 16 Q2 2018 IFRS 16 H1 2018 FY 2018 • Revenue growth of 14.2% despite a 2-day reduction in shopping days Revenue 321,4 281,5 619,4 556,4 1 466,7 Revenue growth 14,2 % 1,1 % 11,3 % 4,5 % 6,2 % • Gross margin improved due
Slide 13: Segment: Hemtex
Segment: Hemtex * Q2 2019 H1 2019 excl. (Amounts in NOK millions) excl. IFRS 16 Q2 2018 IFRS 16 H1 2018 FY 2018 • Performance in line with expectations Revenue 107,4 - 107,4 - - • Initiatives implemented to improve customer Revenue growth ** -1,8% - -1,8% - - offer, strengthen marketing and refurbis
Slide 14: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Integration of Hemtex proceeding as planned. Early growth initiatives in 2019 includes increased marketing, a changed campaign strategy, piloting a common store concept, and increased in-store inventory • Higher prices going forward to offset s
Slide 15: Q&A
QzA Kid INTERIOR
Slide 16: Income statement
Income statement *Q2 2019 IFRS 16 Q2 2019 Q2 2018 *H1 2019 IFRS 16 H1 2019 H1 2018 (Amounts in NOK thousand) IFRS 16 Effects IAS 17 IAS 17 IFRS 16 Effects IAS 17 IAS 17 Revenue 428,8 0,0 428,8 281,5 726,8 0,0 726,8 556,4 COGS 160,2 0,0 160,2 108,5 278,0 0,0 278,0 222,8 Gross profit 268,6 0,0 268,6 1
Slide 17: Cash flow
Cash flow (Amounts in MNOK) * Q2 2019 IFRS 16 Q2 2019 Q2 2018 * H1 2019 IFRS 16 H1 2019 H1 2018 FY 2018 IFRS 16 Effects IAS 17 IAS 17 IFRS 16 Effects IAS 17 IAS 17 IAS 17 Net cash flow from operaions 30,6 62,4 -31,9 -12,6 -16,1 99,4 -115,5 -74,5 265,2 Net Cash flow from investments -14,2 0,0 -14,2 -
Slide 18: Segment: Kid Interior
Segment: Kid Interior Q2 2019 H1 2019 excl. (Amounts in NOK millions) * Q2 2019 excl. IFRS 16 Q2 2018 * H1 2019 IFRS 16 H1 2018 FY 2018 Revenue 321,4 321,4 281,5 619,4 619,4 556,4 1 466,7 Revenue growth 14,2 % 14,2 % 1,1 % 11,3 % 11,3 % 4,5 % 6,2 % LFL growth including online sales 11,0 % 11,0 % -2,
Slide 19: Segment: Hemtex
Segment: Hemtex *Q2 2019 *H1 2019 (Amounts in NOK millions) *Q2 2019 excl. IFRS 16 Q2 2018 *H1 2019 excl. IFRS 16 H1 2018 FY 2018 Revenue 107,4 107,4 - 107,4 107,4 - - Revenue growth ** -1,8% -1,8% - -1,8% -1,8% - - LFL growth including online sales ** 3,2 % 3,2 % - 3,2 % 3,2 % - - COGS 38,5 38,5 -
Slide 20: IFRS 16 - effects
IFRS 16 - effects * 30.06.2019 30.06.2019 30.06.2018 * 30.06.2019 IFRS 16 30.06.2019 30.06.2018 (Amounts in MNOK) IFRS 16 Effects IAS17 IAS17 (Amounts in MNOK) IFRS 16 IFRS 16 effects IAS17 IAS17 Equity and liabilities Assets Share capital 48,8 0,0 48,8 48,8 Goodwill 63,6 0,0 0,0 0,0 Share premium 3
Slide 21: Adjusted EBITDA
Adjusted EBITDA Adjustments overview Q2 Q2 H1 H1 FY (MNOK) 2019 2018 2019 2018 2018 Transaction cost related to 8,0 8,0 Hemtex acquisition* Intergration cost related to 1,4 1,4 Hemtex acquisition EBITDA and EBIT adjustments 9,4 9,4 Profit adjustments before tax 9,4 9,4 Tax effects on adjustments (22