Slide 1: Kid ASA Q4 2016
Kid ASA 13 January 2017 Q4 2016 Presentation available at investor.kid.no
Slide 2: Highlights Q4 2016
Highlights Q4 2016 • Revenues increased by 11.7% compared to Q4 2015 • LFL growth of 8.9% including online sales • Online sales growth of 64.5% • Gross margin of 59.7% (59.3%). IFRS9 implemented • Adjusted EBITDA of MNOK 118.3 (MNOK 95.0), representing an EBITDA margin of 24.5% (21.9%) • 1 new store
Slide 3: Revenues and market share
Revenues and market share Q4 revenues increased by 11.7% Revenue Market • High growth in November due to 12,6 % favorable retail market in Norway and 11,7 % 484 successful changes to campaign plan 433 9,2 % • Like-for-like growth of 8.9% including 6,6 % online sales 314 6,1 % 288 265 • Online sales
Slide 4: Operational focus
Operational focus Q4 operational summary: • Coffee and tea introduced as a new product line • Marcus and Martinus collection launched exclusively by Kid • New all-time-high daily turnover on Black Friday. The increase was somewhat offset by lower sales during the following week • Customer loyalty pr
Slide 5: Operational focus
Operational focus Store portfolio development in Q4: • New stores opened in AMFI Drøbak • The stores at Sjøkanten (Harstad), Kongsenteret (Kongsvinger) and Tveita (Oslo) were relocated • 134 physical stores at the end of the quarter, an increase of 1 stores since Q3-2016 5 Kid ASA Q4 2016
Slide 6: Gross margin
Gross margin Gross margin increase of 0.4 pp in Q4 (IFRS9) Gross margins in 2015 and 2016 • Gross margin was 59.7% for the quarter, an increase of 0.4 pp from Q4 2015 58,5% 61,5% 59,5% 61,1% 59,3% 59,7% 56,4% 58,3% • Kid ASA has early adopted the IFRS 9 standard and hedge accounting in Q4 2016 to be
Slide 7: Adjusted EBITDA
Adjusted EBITDA* Adjusted EBITDA margin of 24.5% (21.9%) in Q4 Adjusted EBITDA 2015 and 2016 • EBITDA was positively affected by strong like-for-like growth, increased gross margins and a reduction of OPEX-to-sales by 2.1 percentage points 118,3 • Employee benefits expenses increased by 4.4% in Q4 2
Slide 8: Income statement
Income statement Income statement* Amounts in MNOK Q4 2016 Q4 2015 FY 2016 FY 2015 Revenue 483,8 433,1 1 293,9 1 188,4 COGS including realized FX-effects -195,0 -176,5 -515,3 -492,0 Adjusted net profit margin of 16.6% (14.0%) in Q4 Gross profit 288,8 256,6 778,6 696,4 Gross margin (%) 59,7 % 59,3 %
Slide 9: Cash flow
Cash flow Cash flow Amounts in MNOK Net cash flow from operations Q4 2016 Q4 2015 244,1 231,6 FY 2016 167,8 FY 2015 128,6 Net cash flow from investments -8,4 -9,3 -34,8 -40,6 Net cash flow from financing -1,6 -3,1 -72,9 44,1 NIBD/EBITDA of 1.2 per 31.12.2016 Net change in cash and cash equivalents 2
Slide 10: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Increased focus on service level in stores. A new simulation based training program in pilot phase and new head of store operations from 1.1.2017 • The store in Kvartal 48 (Hamar) was closed in January. We expect that profitability in the regio
Slide 11: Dividend 2016
Dividend 2016 Proposed dividend of NOK 2.0 (1.5) per share for 2016 • The Board of Directors proposes a dividend of NOK 2.00 per share for 2016 (68% of adjusted net income* for 2016) • The proposed pay-out details are: • Last day including right: 11th of May 2017 • Ex-date: 12th of May 2017 • Record
Slide 12: Kid INTERIOR
Kid INTERIOR
Slide 13: APPENDIX
APPENDIX
Slide 14: Adjustments overview
Adjustments overview Adjustments overview (MNOK) Q4 2016 Q4 2015 FY 2016 FY 2015 Comments 1. Kid relocated to a new warehouse in June 2015 and 1 Adj: Cost of relocation to new warehouse 3,7 consider costs related to this as one-off 2 Adj: Cost related to IPO 2,1 5,8 2. Costs related to the IPO in 20
Slide 15: Measures of gross margin
Measures of gross margin IAS39 as previously reported IFRS9 hedge accounting NGAAP hedge accounting Kid ASA reported gross margins in Kid ASA has early adopted the IFRS 9 Kid ASA has historically tracked the gross accordance with the IAS39 principles until standard and hedge accounting in Q4-2016 ma