Slide 1: Kid ASA Q3 2022
Kid ASA 8 November 2022 Q3 2022 Presentation available at investor.kid.no
Slide 2: Financial Summary: Third quarter in brief
Financial Summary Third quarter in brief • Group revenues1 increased by 0.5% (3.6%). LFL revenues decreased by -0.4% (0.1%) • Reduction in footfall to physical stores • Gross margin decreased by -5.9 percentage points • High freight rates in 2022 not sufficiently incorporated in our calculation mode
Slide 3: Operational focus in Q3
Operational focus in Q3 • Revenues from new categories introduced since 2017 increased by 21% during the quarter. Significant growth in ‘Outdoor range’, ‘Homewear’ and ‘Lighting and Lamps’. • ‘Nice & Tidy’ introduced as a new concept • ‘Premium Collection’ now expanded from bedlinen to also includin
Slide 4: Revenues
Revenues Group revenues increased by 0.5%¹ (3.6%¹ ) Revenues (MNOK) Group like-for-like growth (%) • Group like-for-like revenues decreased by -0.4% (+0.1%) including online sales • Reduction in footfall to physical stores, but increased online traffic • Positive development in new categories • Kid
Slide 5: Gross margin
Gross margin Gross margin in Q3 suffered from high freight cost Group gross margins • High freight rates in 2022 not sufficiently incorporated in our calculation models, and consequently not reflected in increased sales prices • Overseas freight cost expressed as percentage of cost of goods sold was
Slide 6: EBITDA
EBITDA EBITDA of 142.7 (219.6) in Q3 EBITDA Q3 2022 vs. Q3 2021 • EBITDA decreased by MNOK 76.9 to MNOK 142.7 • Increased OPEX of MNOK 23.8 excluding IFRS16 effects due to new stores, general costs increases from electricity, third party logistics costs, planned marketing increase and HQ salaries •
Slide 7: Inventory
Inventory Inventory of MNOK 877 (MNOK 586) Inventory increase of MNOK 291 from Q3 2021 • Inventory affected by discrepancies in the value chain • Increased freight costs included in inventory of MNOK 64 • Earlier placement of orders due to uncertain delivery times resulting in approximately MNOK 55
Slide 8: Cash flow
Cash flow Satisfactory financial position and liquidity (Amounts in NOK million) Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 FY 2021 • Cash flow from operations decreased by MNOK 139.3 compared to Net cash flow from operations 50,2 189,5 -42,1 196,3 673,7 Q3 2021 Net Cash flow from investments -7,2 -19,0
Slide 9: Semi-annual dividend
Semi-annual dividend Dividend of NOK 2.50 per share • The Board of Directors has decided to pay a half-year dividend of NOK 2.50 per share as a prepayment on the fiscal year 2022, representing 33% of adjusted net income for the last twelve months • Following the Q4 2022 results, the board of directo
Slide 10: Growth strategy
Growth strategy LIKE-FOR-LIKE OMNICHANNEL STORE NETWORK EXTENDED RETAIL CONCEPT Category development and New joint online platform Maintain an optimized store Pilot an extended retail concept expansion launched in 2021 portfolio of up to 320 stores based on existing and new categories in online stor
Slide 11: Extended retail concept
Conceptual model for expanded physical stores Extended retail concept (extended assortment also available online) Summery Increased space for inspiration • After successfully expanding the assortment in recent years, Kid is currently expanding and relocating the current store portfolio to ~600 sqm i
Slide 12: Extended retail concept
Extended retail concept The assortment and rollout • The assortment is developed in line with the existing design principles: Inspirational, good quality and value-for-money • Examples of categories expansions include Premium Collection, Office Supply and Paperware, Kitchen Accessories, Rugs and Car
Slide 13: Extended retail concept
Extended retail concept PILOTS TYPE OPENING Value chain Online Expansion Q4-22 (www.kid.no) • The expanded assortment including larger furniture and Sartor (Bergen) Relocation Q4-22 beds is already in inventory with MNOK 8.5 in value Dikeveien Refurbishment Q1-23 • The extended assortment related to
Slide 14: Extended retail concept
Extended retail concept 14 Kid ASA Q3 2022
Slide 15: Slide 15
Slide 16: Store portfolio activity
Number of stores per quarter end Store portfolio activity Completed year to date Signed, but not yet completed 272 NO: Ullevål (Q4 22) NO: Trondheim Torg (Q2 23) 104* NO: Skøyen New stores NO: Grünerløkka (Q2 24) NO: Kolbotn Torg NO: Fredrikstad (Q4 24) EST: Kristiine Keskus, Tallin (Q4 22) 8 155 NO
Slide 17: Outlook
Outlook • Well prepared for the Christmas shopping season • 2 new stores to open in Q4 2022 of which 1 are in Norway (Ullevål) and 1 in Estonia (Kristiine Keskus) • New warehouse in Sweden progressing as planned. Expect building to be finalized in April 2023 and operational during summer of 2023 • W
Slide 18: Q&A
Q &A
Slide 19: Segment: Kid Interior
Segment: Kid Interior (Amounts in NOK millions) Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 FY 2021 Revenue 457,9 451,7 1 280,2 1 196,1 1 883,5 Revenue growth 1,4 % -3,9% 7,0 % 2,3 % 1,1 % LFL growth including online sales -1,0% -7,1% 4,6 % -0,6% -1,8% COGS -209,3 -170,7 -533,3 -450,4 -702,3 Gross profit
Slide 20: Segment: Hemtex
Segment: Hemtex (Amounts in NOK millions) Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 FY 2021 Revenue 276,8 298,9 789,2 800,6 1 213,6 Revenue growth ¹ -1,0% 17,4 % 3,9 % 10,7 % 10,1 % LFL growth including online sales ¹ 0,8 % 14,6 % 2,7 % 10,9 % 9,8 % COGS -117,6 -118,8 -320,2 -306,6 -457,2 Gross profit 1
Slide 21: Income statement
Income statement (Amounts in NOK thousand) Q3 2022 Q3 2021 Q1-Q3 2022 Q1-Q3 2021 Revenue 734,7 750,6 2 069,4 1 996,7 COGS -326,9 -289,4 -853,5 -757,0 Gross profit 407,8 461,2 1 215,9 1 239,7 Gross margin (%) 55,5 % 61,4 % 58,8 % 62,1 % Other operating revenue 1,5 1,0 4,0 3,8 OPEX -266,6 -242,6 -799,
Slide 22: Statement of financial position
Statement of financial position (Amounts in NOK thousand) Note 30.09.2022 30.09.2021 31.12.2021 (Amounts in NOK thousand) Note 30.09.2022 30.09.2021 31.12.2021 Assets Unaudited Unaudited Audited Equity and liabilities Unaudited Unaudited Audited Goodwill 9 67 266 69 247 70 286 Share capital 48 770 4
Slide 23: 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 4,0 3,6 6,1 11,3 15,6 benefits expense Segment allocated other operating 0,6 1,7
Slide 24: 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 % 1,4 % 2022 4,8 % 8,8 % -1,0 % Like-for-like growth
Slide 25: 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 79 227 2022 89 90 92 271 Number of store projects Number of store projects 2021 Q1 Q2 Q3 Q4 Total 2021 Q1 Q2 Q3 Q4 To