Slide 1: Kid ASA Q2 2017
Kid ASA 16 August 2017 Q2 2017 Presentation available at investor.kid.no
Slide 2: Highlights Q2 2017
Highlights Q2 2017 • Revenues increased by 4.9% compared to Q2 2016 • Four fewer shopping days due to timing of Easter • Gross margin of 61.6% (61.5%) • EBITDA of MNOK 21.6 (MNOK 24.5), representing an EBITDA margin of 7.7% (9.2%) • 3 store openings and 2 store relocations • NIBD/EBITDA of 2.2 (3.0)
Slide 3: Revenues and market share
Revenues and market share Q2 revenues increased by 4.9% Revenue Market • Four fewer shopping days due to timing of Easter 484 11,7 % • Like-for-like growth of 2.8% including 10,1 % 9,2 % online sales 7,7 % • Online sales growth of 46.7% 314 6,6 % 278 6,4 % 265 • 3 new stores and 2 store relocations
Slide 4: Store portfolio
Store portfolio Store portfolio development in Q2: • New stores opened in Fornebu S (Oslo), Storo Storsenter (Oslo) and Romerrikssenteret (Kløfta) • The store at Sandvika Storsenter (Sandvika) and Glasshuset (Bodø) were relocated • 137 (132) physical stores at the end of the quarter • Three of the f
Slide 5: Operational focus
Operational focus Operational focus on growth initiatives: • Interactive simulation-based training app launched for all store employees • Simulation of store employee behavior while servicing customers in a virtual Kid store • The goal is to increase service level in Kid stores, significant growth p
Slide 6: Gross margin
Gross margin Gross margin increase of 0.1 pp in Q2 (IFRS9) Gross margins in 2016 and 2017 • Gross margin was 61.6% for the quarter, an 61,5% 61,6% 61,1% increase of 0.1 pp from Q2 2016 58,3% 59,9% 59,7% • Kid ASA has adopted the IFRS9 retrospectively from 1 January 2015*. The transition period ended
Slide 7: EBITDA
EBITDA Adjusted EBITDA margin of 7.7% (9.2%) in Q2 Adjusted EBITDA 2016 and 2017 • Employee benefits expenses increased by 7.9% in Q2 2017 • 2.0 pp due to net new stores 118,3 • 2.0 pp due to increased provision for store bonuses • 3.9 pp due to general salary inflation and increased staffing level
Slide 8: Income statement
Income statement Income statement Amounts in MNOK Q2 2017 Q2 2016 H1 2017 H1 2016 FY 2016 Revenue 278,4 265,5 532,3 496,0 1 293,9 COGS -107,0 -102,2 -208,9 -198,3 -515,3 Net profit margin of 2.8% (4.1%) in Q2 Gross profit 171,4 163,3 323,4 297,8 778,6 Gross margin (%) 61,6 % 61,5 % 60,8 % 60,0 % 60,
Slide 9: Cash flow
Cash flow Cash flow Amounts in MNOK Q2 2017 Q2 2016 H1 2017 H1 2016 FY 2016 Net cash flow from operations -32,3 4,5 -96,3 -89,6 172,0 Net cash flow from investments -24,3 -8,5 -30,7 -17,4 -34,8 NIBD/EBITDA of 2.2 (3.0) per 30.06.2017 Net cash flow from financing -84,2 -64,4 -87,6 -68,1 -72,9 Net cha
Slide 10: New lending agreement
New lending agreement A cornerstone in our dividend policy • The new agreement replaces the MNOK 525 long- term debt with a new structure: • MNOK 425 in long-term debt • MNOK 100 in flexible credit facility. Classified as short-term debt • The agreement expires in May 2020 • Small increase in intere
Slide 11: Operational initiatives
Operational initiatives Mid-term objectives unchanged • Financial goal of maintaining last year’s ratio between operating expenses and sales remains unchanged on an annual basis. • The new store in Pilestredet (Oslo) opened on July 29th and the new store in Ski Storsenter (Ski) is expected to open u
Slide 12: Q&A
Q &A