Kid Asa · OSL:KID

Kid Asa — Q3 2020 Earnings Presentation

17 slides from Kid Asa's earnings presentation, Nov 5, 2020

  1. Slide 1: Kid ASA Q3 2020

    Kid ASA Kid ASA 5 November 2020 Kid ASA 5 November 2020 5 November 2020 Q3 2020 Q3 2020 Presentation available at investor.kid.no Q3 2020 PresentationPresentation available available at investor.kid.no at investor.kid.no

  2. Slide 2: Financial third quarter in brief

    Financial third quarter in brief • Group revenues increased by 16.5%1 and LFL growth was 16.6%2 • Kid Interior revenue growth of 22.1% (LFL growth of 20.9%) • In local currency, Hemtex revenue decreased by 3.7% (LFL growth of 9.2%2) • Gross margin increased by 3.6 pp due to change in product mix and

  3. Slide 3: Operational focus in Q3

    Operational focus in Q3 • Managing high growth and streamlining operations in Norway and Sweden • No major sourcing challenges so far • All products now sourced from the centralised function at the headquarters in Lier • Our first new opening in Hemtex since the acquisition • Lease agreements renego

  4. Slide 4: We continue to strengthen our sustainability activities

    We continue to strengthen our sustainability activities • Over the last twelve months we have reduced plastic packaging by 80 tons by switching to recyclable packaging • Over the past three years we have focused on more sustainable materials in our value chain, e.g: • Changed all bags from plastic t

  5. Slide 5: Pan-Nordic presence

    Pan-Nordic presence 273 Store information Q3 • Kid Interior (143 stores) 116 • Manglerud and Oppdal were refurbished • No new opened or closed stores 9 • Hemtex (130 stores, incl. 12 franchise stores) 143 • One store was opened in Kalmar (Sweden) • Three stores were closed; Sergelgatan (Sweden), Aio

  6. Slide 6: Revenues and market share

    Revenues and market share Group revenues increased by 16.5%¹ Revenue (MNOK) Like-for-like growth (%) • Group like-for-like of 16.6% including online sales • Kid Interior revenue growth of 22.0% (4.6%) • Like-for-like growth of 20.9% (2.0%) including online sales • Online sales growth of 18.6% to MNO

  7. Slide 7: Gross margin

    Gross margin Group gross margin of 63.1% in Q3 Group gross margins in 2019 and 2020¹ • Group gross margin was 63.1 % for the quarter, up by 3.6 pp due to change in product mix and less rebating • Kid Interior gross margin increased by 2.3 pp from 60.9% to 63.2%. The increase was caused by changes to

  8. Slide 8: EBITDA

    EBITDA Adjusted EBITDA of 214.5 (144.0) in Q3 Adjusted1 EBITDA Q3 2020 versus Q3 2019 • Adjusted EBITDA excl. IFRS16 of MNOK 138.9 (75.3) for Q3 • Kid Interior EBITDA excl. IFRS16 of MNOK 111.6 (69.6) • Increased EBITDA mainly due to increased revenues and improved gross margins • Estimated COVID-19

  9. Slide 9: Cash flow

    Cash flow (Amounts in NOK million) Solid financial position and liqudity Q3 2020 Q3 2019 Q1-Q3 2020 Q1-Q3 2019 ¹ FY 2019 ¹ Net cash flow from operaions 144,4 90,8 225,3 74,3 523,6 • Cash flow from operations positively affected by Net Cash flow from investments -13,1 -19,1 -38,2 -46,0 -92,9 increase

  10. Slide 10: Segment: Kid Interior

    Segment: Kid Interior (Amounts in NOK millions) Q3 2020 Q3 2019 Q1-Q3 2020 Q1-Q3 2019 FY 2019 Revenue 470,1 384,9 1 168,7 1 004,3 1 606,3 Revenue growth 22,1 % 4,6 % 16,4 % 8,6 % 9,5 % LFL growth including online sales 20,9 % 2,0 % 15,5 % 5,6 % 6,8 % COGS -173,0 -150,6 -448,6 -389,2 -622,6 Gross pro

  11. Slide 11: Segment: Hemtex

    Segment: Hemtex (Amounts in NOK millions) Q3 2020 Q3 2019 Q1-Q3 2020 Q1-Q3 2019 ¹ FY 2019 ¹ Revenue 258,8 241,0 728,8 348,4 735,9 Revenue growth ² -3,7% 11,1 % 5,2 % 6,7 % 13,1 % LFL growth including online sales ² 9,2 % 3,2 % 11,9 % 3,3 % 12,5 % COGS -95,9 -98,1 -270,1 -136,6 -290,5 Gross profit 16

  12. Slide 12: Semi-annual dividend

    Semi-annual dividend Dividend of NOK 5.80 per share • The Board of Directors has decided to pay a half-year dividend of NOK 5.80 per share representing • NOK 1.20 per share that was withheld in June • NOK 4.60 per share as a prepayment on the fiscal year 2020 and representing 58% of adjusted net inc

  13. Slide 13: Mid-term objectives

    Mid-term objectives • Four new store openings in Kid Interior and one new opening in Hemtex will take place in Q4 ahead of Christmas • Kid Interior: Røa, Nittedal, Mosseporten and Åkrehamn • Hemtex: Valbo (Sweden) • Board approved plan to invest in a new technology platform as the fundament for futu

  14. Slide 14: Q & A

    Q&A Kid ASA Q3 2020

  15. Slide 15: Income statement

    Income statement (Amounts in NOK thousand) Q3 2020 Q3 2019 Q1-Q3 2020 Q1-Q3 2019 ¹ Revenue 728,9 625,9 1 897,5 1 352,7 COGS -269,0 -253,2 -723,5 -531,2 Gross profit 460,0 372,7 1 174,0 821,6 Gross margin (%) 63,1 % 59,5 % 61,9 % 60,7 % Other operating revenue 0,4 1,1 0,7 2,0 OPEX -245,8 -232,9 -720,

  16. Slide 16: Statement of financial position

    Statement of financial position (Amounts in NOK thousand) Note 30.09.2020 30.09.2019 31.12.2019 ¹ (Amounts in NOK thousand) Note 30.09.2020 30.09.2019 31.12.2019 ¹ Equity and liabilities Unaudited Unaudited Audited Assets Unaudited Unaudited Audited Goodwill 9 72 737 64 085 65 402 Share capital 48 7

  17. Slide 17: Sales days and stores

    Sales days and stores Kid Hemtex Number of sales days Number of sales days Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2019 76 71 79 80 306 2019 90 92 91 273 2020 77 72 79 80 308 2020 91 90 92 273 Number of store projects Number of store projects 2019 Q1 Q2 Q3 Q4 Total 2019 Q1 Q2 Q3 Q4 Total New s

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