Slide 1: Kid ASA Q2 2022
Kid ASA 25 August 2022 Q2 2022 Presentation available at investor.kid.no
Slide 2: Financial Summary
Financial Summary Second quarter in brief Compounded annual revenue growth of 10%³ since H1 2019 REVENUE EBITDA EX. IFRS16¹ • Group revenues1 increased by 8.8% (3.9%) and LFL by MNOK MNOK 5.6% (2.9%) • Increased footfall and online traffic • Gross margin decreased by -3.7 percentage points • Increas
Slide 3: Operational focus in Q2
Operational focus in Q2 • Earlier deliveries of goods to mitigate risk of delays • Maintained focus on future deliveries, with ~90% of autumn collections delivered/on sea and earlier delivery schedules on winter and Christmas collections • Signed freight agreement ensuring lower freight cost level f
Slide 4: Revenues
Revenues Group revenues increased by 8.8%¹ (3.9%¹ ) Revenues (MNOK) Group like-for-like growth (%) • Group like-for-like revenues increased by 5.6% (2.9%) including online sales • Increase in footfall to physical stores and online traffic • Positive development in new categories, with the highest gr
Slide 5: Gross margin
Gross margin Decreased gross margin in Q2 Group gross margins • Q2 this year was negatively affected by peaking freight costs, higher campaigning volumes on seasonal spring collection due to late arrivals, increased B2B-sales with lower margins and increased costs of raw materials • Proactive price
Slide 6: EBITDA
EBITDA EBITDA of 167.6 (172.5) in Q2 EBITDA Q2 2022 vs. 2021 • EBITDA decreased by MNOK 4.9 to MNOK 167.6 • Increased OPEX of MNOK 15.6 excluding IFRS16 effects due to new stores, less Covid-19 costs savings, planned marketing increase, logistics activity following higher volumes, HQ salaries and ge
Slide 7: Inventory
Inventory Inventory of MNOK 779 (MNOK 554) • Planned inventory increase driven by – New stores and expanded store sizes – Expanded product and category assortment – Seasonal inventory level in Q2 last year was lower than desired – MNOK 60 of the inventory increase due to earlier inventory recognitio
Slide 8: Cash flow
Cash flow Solid financial position and liquidity (Amounts in NOK million) Q2 2022 Q2 2021 H1 2022 H1 2021 FY 2021 • Cash flow from operations decreased by MNOK 13 compared to Net cash flow from operations 99,3 112,6 -92,3 6,8 673,7 Q2 2022 Net Cash flow from investments -31,2 -23,0 -69,3 -36,6 -92,6
Slide 9: Financial Objectives
Financial Objectives FINANCIAL PERFORMANCE (FULL YEAR BASIS) STORE PORTFOLIO DIVIDEND POLICY & CAPITAL STRUCTURE • Kid target a pay-out ratio of 80- 100% of adjusted net profit • Like-for-Like growth of Sales 3-4% in a normalised market • An optimized portfolio of • Semi-annual dividend payments Sto
Slide 10: Store portfolio activity
Number of stores per quarter end Store portfolio activity Completed year to date Signed, but not yet completed 273 NO: Ullevål (Q4 22) 105* NO: Skøyen New stores NO: Grünerløkka (Q2 24) NO: Kolbotn Torg NO: Fredrikstad (Q4 24) 8 155 Closures SE: 3 stores SE: 1 store NO: 1 store NO: 6 stores 5 Reloca
Slide 11: Q&A
Q&A
Slide 12: Segment: Kid Interior
Segment: Kid Interior (Amounts in NOK millions) Q2 2022 Q2 2021 H1 2022 H1 2021 FY 2021 Revenue 455,5 418,4 822,3 744,5 1 883,5 Revenue growth 8,9 % 1,7 % 10,5 % 6,6 % 1,1 % LFL growth including online sales 5,8 % -0,9% 7,9 % 3,7 % -1,8% COGS -182,2 -152,9 -323,9 -279,7 -702,3 Gross profit 273,3 265
Slide 13: Segment: Hemtex
Segment: Hemtex (Amounts in NOK millions) Q2 2022 Q2 2021 H1 2022 H1 2021 FY 2021 Revenue 274,6 257,9 512,4 501,7 1 213,6 Revenue growth ¹ 8,8 % 7,7 % 6,9 % 7,1 % 10,1 % LFL growth including online sales ¹ 5,2 % 9,8 % 3,7 % 8,8 % 9,8 % COGS -109,9 -92,7 -202,7 -187,9 -457,2 Gross profit 164,7 165,2
Slide 14: Income statement
Income statement (Amounts in NOK thousand) Q2 2022 Q2 2021 H1 2022 H1 2021 Revenue 730,1 676,3 1 334,7 1 246,1 COGS -292,1 -245,5 -526,6 -467,6 Gross profit 438,0 430,8 808,1 778,5 Gross margin (%) 60,0 % 63,7 % 60,5 % 62,5 % Other operating revenue 1,8 1,4 2,5 2,7 OPEX -272,2 -259,7 -532,6 -496,0 E
Slide 15: Statement of financial position
Statement of financial position (Amounts in NOK thousand) Note 30.06.2022 30.06.2021 31.12.2021 (Amounts in NOK thousand) Note 30.06.2022 30.06.2021 31.12.2021 Equity and liabilities Unaudited Unaudited Audited Assets Unaudited Unaudited Audited Goodwill 9 66 801 69 684 70 286 Share capital 48 770 4
Slide 16: Allocated segment costs
Allocated segment costs Segment allocated costs Total year Total year (MNOK) Q1 2022 Q1 2021 Q2 2022 Q2 2021 Q3 2022 Q3 2021 Q4 2022 Q4 2021 2022 2021 Kid ASA and Kid Interior Segment allocated employee 3,3 0,8 4,0 5,2 3,6 6,1 7,3 15,6 benefits expense Segment allocated other operating 0,6 1,7 0,6 1
Slide 17: Quarterly revenue growth
Quarterly revenue growth Kid Interior Hemtex Total growth Total growth Year Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 2020 -3,6 % 28,0 % 22,1 % 15,3 % 2020 6,6 % 14,7 % -3,7 % -5,7 % 2021 13,6 % 1,7 % -3,9 % -1,0 % 2021 6,4 % 7,7 % 17,4 % 9,0 % 2022 12,5 % 8,9 % 2022 4,8 % 8,8 % Like-for-like growth Like-for-lik
Slide 18: Sales days and stores
Sales days and stores Kid Interior Hemtex Number of sales days Number of sales days Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2021 76 71 79 81 307 2021 89 90 92 91 362 2022 76 72 148 2022 89 90 179 Number of store projects Number of store projects 2021 Q1 Q2 Q3 Q4 Total 2021 Q1 Q2 Q3 Q4 Total Ne