Kid ASA

Investor Presentation • May 16, 2024

First quarter in brief

• Group revenues increased by 15.0% (+0.1%). In constant currency:
  • Group revenues increased by 13.7% (-1.3%)
  • LFL revenues increased by 13.5% (-0.3%)
  • Online revenues increased by 16.2% (+1.8%)
• Gross margin increased by 5.5 percentage points to 61.5%
• EBITDA increased by MNOK 67.9 to MNOK 124.5
• EPS of NOK -0.23 (NOK -1.15)
• Cash flow from operations impacted by inventory build-up

First quarter in brief

• Third consecutive quarter with double-digit revenue growth
• Categories launched since 2022 accounted for MNOK 27.0 (MNOK 9.8) in revenues
• The Extended concept was launched online and in selected larger stores (+600 sqm.) in Hemtex
• Completed 8 store projects in Kid Interior and 3 in Hemtex
• Omnichannel and category development initiatives and store projects accelerated growth
• Warehouse project in Sweden on schedule

Group revenues Q1 increased by 15.0% (+0.1%)

• In constant currency:
  • Group revenues increase of 13.7% (-1.3%)
  • Group like-for-like revenues increase of 13.5% (-0.3%) including online sales
  • Online growth of 16.2% (+1.8%), equivalent to an online share of 12.0%. Including click-and-collect, the online share was 17.5%
• Kid Interior revenues growth of 13.4% (+5.2%)
  • Like-for-like growth of 12.7% (+3.5%) including online sales
  • Online sales increased by 33.3% (+20.8%)
• Hemtex revenues growth of 17.9% (-7.7%). In constant currency:
  • Revenues growth of 14.3% (-10.9%)
  • Like-for-like growth of 14.9% (-6.5%) including online sales
  • Online sales decreased by -3.2% (-14.0%)

Kid Interior Hemtex

Strong gross margin development

• Group gross margin was 61.5% for the quarter, up 5.5pp compared to Q1-23
  • Kid Interior gross margin increased by 6.1pp to 61.5% (55.4%)
  • Hemtex gross margin increased by 4.2pp to 61.4% (57.2%)
• Gross margin has improved due to price adjustments and freight rates returning to historical levels
• Gross margin in Q1-23 was unusually low as the high freight rates in 2022 were not sufficiently incorporated in our price calculation models
• The situation in the Red Sea / Gulf of Aden is monitored closely and we are prepared to take actions if necessary

OPEX-TO-SALES (excl. IFRS 16) of 57.5% (60.5%)

• Employee benefit expenses increased by MNOK 18.1
  • General salary increase and increased number of HQ employees
  • Increased logistics due to own employees in new Swedish warehouse
  • Tight cost control in Norway for like-for-like stores regarding working hours
  • MNOK 1.9 increase due to changes in SEKNOK exchange rate
• Other operating expenses increased by MNOK 3.3
  • Increased marketing cost
  • Reduced logistics costs due to shift between other OPEX and employee expenses for the logistics operation in Sweden
  • MNOK 2.0 increase due to changes in SEKNOK exchange rate

Personell Other Opex

Kid Interior Hemtex

Cash flow development

• Cash flow from operations affected by inventory build-up during the quarter
• Cash flow from investments reflects mainly CAPEX relating to store openings and projects
• Cash flow from financing represents use of overdraft facility and lease payments

Description	Term loan	Term loan (new)	Revolving credit facility	Overdraft facility	Cash and deposits
Maturity	15.05.2026	01.05.2027	27.04.2026	12 months	n.a.

Robust financial position

• Cash and available credit facilities of MNOK 554.7 (MNOK 328.6), including an unused termloan facility of MNOK 125 related to investments in the Swedish warehouse
• Net interest-bearing debt excl. IFRS 16 leasing liabilities of MNOK 568.9 (MNOK 700.1)
• Gearing ratio, excl. IFRS 16 effects, of 0.95x (1.94x)

	Completed 2024	Signed, but not yet completed
New stores	NO: Oslo City	NO: Egersund (Q2-24) NO: Fredrikstad (Q4-24) NO: Grünerløkka (Q2-25) SE: Vetlanda (Q2-24) SE: Ringen, Stockholm (Q2-24)
Closures	NO: 1 store SE: 1 store	NO: 1 store SE: 3 stores
Relocations	NO: 4 stores SE: 1 store	NO: 3 stores SE: 3 stores
Refurbishment/ expansion	NO: 3 stores SE: 2 stores	NO: 3 stores
Extended		NO: Grini (Q2-24) NO: Kilen, Tønsberg (Q3-24) NO: City Nord (Q2-25) NO: 2 stores**
		** Subject to final approval by landlord

*Fully-owned stores. Hemtex has additional 11 franchise stores

Profitable store size expansion

• Existing categories and products need at least 600 sqm. to be displayed in a physical store, which is the foundation for our new standard store size
• Kid Group is working to develop the store portfolio towards the new standard store size (~600 sqm.) by expanding and / or relocating existing stores in all four markets
• Preliminary conclusion from Q1-22 presentation has been verified, and the increased store portfolio drives profitable growth. Historically, we see the fully potential of the performance in year 3 of operation
• 5 Extended (~1,200 sqm.) stores in Norway included in the overview

Store projects fuel reported like-for-like revenue growth

• 14 Kid Interior stores and 17 Hemtex stores were refurbished or relocated with our latest store concept in 2022 and outperformed the remaining store portfolio
  • Expansion combined with refurbishment or relocation is considered an important growth driver
• 53 Hemtex stores has been upgraded to Kid store concept as per 31 December 2023. Compounded annual growth from 2021 to 2023 was 5.4% for these stores compared to 1.1% for remaining like-for-like stores
• Kid ASA will continue ramping up the store investment program going forward and increase the maintenance CAPEX to MNOK 125 on an annual basis to support expansion, refurbishment and relocation of stores

Potential in continued portfolio optimisation and expansion

• Compared to 2021, Kid Interior and Hemtex have increased the average store size in the portfolio by 4.3% and 9.5%, respectively
  • 5 Extended stores in Norway excluded from the overview
• Kid Group is aiming to develop the store portfolio towards the new standard store size (~600 sqm.)
• Store portfolio figures for 2021 were reported in the Q1-22 presentation, which is included in the upper table for comparability purposes

2021	#Stores	Avg. SQM	Revenue/Store (MNOK)	Revenue/SQM (NOK)
Hemtex	117	367	8.2	23,300
Kid Interior	147	458	11.6	25,700

2023	#Stores	Avg. SQM	Revenue/Store (MNOK)	Revenue/SQM (NOK)
Hemtex	116 (-1)	402 (+35)	8.9 (+0.7)	22,900 (-400)
Kid Interior	150 (+3)	478 (+20)	11.8 (+0.2)	24,900 (-800)

• In H1-24, we have 15 store projects in Kid Interior and 12 in Hemtex. These projects include a combination of refurbishment, enlargement and relocations
• Raised ambition from 10 to 15 Extended stores in total for the Norwegian market
• Made-to-measure technical sun screening to be launched in Hemtex, both in physical stores and online, during Q2-24
• Group revenue in constant currency increased by 25.5% in April and 16.6% year-to-date per April fueled by change in campaign plan
• Sale of the Swedish warehouse property will be considered over the coming 6-12 months. Colliers selected as advisor
• Revised financial objectives in the annual report for 2023

KID Interior

(Amounts in NOK millions)	Q1 2024	Q1 2023	FY 2023
Revenue	437.7	385.9	2,122.9
Revenue growth	13.4 %	5.2 %	7.0 %
LFL growth including online sales	12.7 %	3.5 %	6.1 %
COGS	-168.3	-172.2	-796.2
Gross profit	269.4	213.7	1,326.7
Gross margin (%)	61.5 %	55.4 %	62.5 %
Other operating revenue	0.0	0.0	0.1
Employee benefits expense	-111.8	-101.0	-436.5
Other operating expense	-118.3	-108.2	-463.9
Other operating expense - IFRS 16 effect	52.2	47.4	189.2
EBITDA	91.6	52.0	615.5
EBITDA margin (%)	20.9 %	13.5 %	29.0 %
No. of shopping days	75	77	306
No. of physical stores at period end	157	155	157

Hemtex
(Amounts in NOK millions)	Q1 2024	Q1 2023	FY 2023
Revenue	258.8	219.5	1,290.7
Revenue growth ¹	14.3 %	-10.9%	3.2 %
LFL growth including online sales ¹	14.9 %	-6.5%	4.4 %
COGS	-99.9	-94.0	-518.0
Gross profit	158.9	125.5	772.6
Gross margin (%)	61.4 %	57.2 %	59.9 %
Other operating revenue	0.8	0.6	4.2
Employee benefits expense	-67.2	-59.9	-268.2
Other operating expense	-103.0	-97.4	-390.0
Other operating expense - IFRS 16 effect	43.4	35.8	150.4
EBITDA	33.0	4.6	269.0
EBITDA margin (%)	12.7 %	2.1 %	20.8 %
No. of shopping days	90	89	362
No. of physical stores at period end (excl.
franchise)	118	118	119
¹Calculated in local currency

(Amounts in NOK thousand)	Q1 2024	Q1 2023	FY 2023
Revenue	696.5	605.4	3,413.6
COGS	-268.2	-266.2	-1,314.3
Gross profit	428.2	339.2	2,099.3
Gross margin (%)	61.5 %	56.0 %	61.5 %
Other operating
revenue	0.8	0.6	4.3
OPEX	-304.6	-283.2	-1,219.1
EBITDA	124.5	56.6	884.5
EBITDA margin (%)	17.9 %	9.3 %	25.9 %
Depreciation and amortisation	-115.0	-95.8	-404.1
EBIT	9.5	-39.2	480.4
EBIT margin (%)	1.4 %	-6.5 %	14.1 %
Net finance	-19.9	-17.9	-76.6
Share of result from joint ventures	-0.6	-0.4	-1.2
Profit before tax	-10.9	-57.1	402.5
Net profit	-9.1	-46.6	313.8

(Amounts in NOK thousand)	Note	31.03.2024	31.03.2023	31.12.2023
Assets		Unaudited	Unaudited	Audited
Goodwill	9	70,328	69,957	70,169
Trademark	9	1,513,974	1,513,696	1,513,851
Other intangible assets	9	46,276	34,656	46,699
Deferred tax asset		6,562	17,450	6,593
Total intangible assets		1,637,140	1,635,759	1,637,312
Right of use asset	9	1,182,535	1,067,142	1,050,028
Fixtures and fittings, tools, office machinery and
equipment	9	319,111	274,966	303,178
Total tangible assets		1,501,645	1,342,108	1,353,206
Investments in associated companies and joint ventures	10	424	0	1,013
Loans to associated companies and joint ventures	8	51,476	35,800	50,702
Total financial fixed assets		51,900	35,800	51,716
Total fixed assets		3,190,686	3,013,667	3,042,234
Inventories		700,134	672,806	576,279
Trade receivables		25,876	15,322	32,640
Other receivables		41,943	16,495	43,031
Derivatives		49,693	53,763	29,337
Totalt receivables		117,513	85,581	105,009
Cash and bank deposits		0	0	225,065
Total currents assets		817,646	758,386	906,353
Total assets		4,008,332	3,772,053	3,948,587

(Amounts in NOK thousand)	Note	31.03.2024	31.03.2023	31.12.2023
Equity and liabilities		Unaudited	Unaudited	Audited
Share capital		48,770	48,770	48,770
Share premium		321,050	321,050	321,050
Other paid-in-equity		64,617	64,617	64,617
Total paid-in-equity		434,440	434,440	434,440
Other equity		929,259	823,704	880,840
Total equity		1,363,699	1,258,144	1,315,280
Deferred tax		322,264	325,543	312,218
Total provisions		322,264	325,543	312,218
Lease liabilities		879,315	786,325	779,287
Liabilities to financial institutions	6	491,652	521,650	491,661
Total long-term liabilities		1,370,967	1,307,975	1,270,947
Lease liabilities		341,853	302,973	305,640
Liabilities to financial institutions	6	77,296	178,419	30,000
Trade payable		187,088	134,258	203,375
Tax payable		0 -	20,491	55,813
Public duties payable		138,640	90,105	209,941
Other short-term liabilities		199,797	192,554	191,626
Derivatives		6,731	2,574	53,748
Total short-term liabilities		951,405	880,393	1,050,144
Total liabilities		2,644,636	2,513,911	2,633,310
Total equity and liabilities		4,008,332	3,772,053	3,948,587

(MNOK)	Q1 2024	Q1 2023	Q2 2024	Q2 2023	Q3 2024	Q3 2023	Q4 2024	Q4 2023	Total year 2024	Total year 2023
Kid ASA and Kid Interior
Segment allocated employee benefits expense	4.0	4.2		4.0		4.0		6.6	4.0	18.9
Segment allocated other operating expense	1.2	0.5		0.5		0.5		1.3	1.2	2.6
Hemtex
Segment allocated employee benefits expense	-4.0	-4.2		-4.0		-4.0		-6.6	-4.0	-18.9
Segment allocated other operating expense	-1.2	-0.5		-0.5		-0.5		-1.3	-1.2	-2.6

21 Kid ASA – Q1 presentation

Group
Total growth
Year	Q1	Q2	Q3	Q4
2021	10.4 %	3.9 %	3.6 %	2.5 %
2022	9.3 %	8.8 %	0.5 %	2.1 %
2023	-1.3 %	-2.5 %	12.1 %	10.2 %
2024	13.7 %
Like-for-like growth
Year	Q1	Q2	Q3	Q4
2021	9.3 %	2.9 %	0.1 %	0.2 %
2022	7.3 %	5.6 %	-0.4 %	1.8 %
2023	-0.3 %	-3.3 %	12.9 %	9.3 %
2024	13.5 %

Kid Interior					Hemtex
Total growth					Total growth
Year	Q1	Q2	Q3	Q4	Year	Q1	Q2	Q3
2020	-3.6 %	28.0 %	22.1 %	15.3 %	2020	6.6 %	14.7 %	-3.7 %
2021	13.6 %	1.7 %	-3.9 %	-1.0 %	2021	6.4 %	7.7 %	17.4 %
2022	12.5 %	8.9 %	1.4 %	2.3 %	2022	4.8 %	8.8 %	-1.0 %
2023	5.2 %	-1.1 %	13.1 %	9.3 %	2023	-10.9 %	-4.8 %	10.5 %
2024	13.4 %				2024	14.3 %
Like-for-like growth					Like-for-like growth
Year	Q1	Q2	Q3	Q4	Year	Q1	Q2	Q3
2020	-4.0 %	27.1 %	20.9 %	13.6 %	2020	7.9 %	18.0 %	9.2 %
2021	10.3 %	-0.9 %	-7.1 %	-3.8 %	2021	7.8 %	9.8 %	14.6 %
2022	10.7 %	5.8 %	-1.0 %	0.9 %	2022	2.0 %	5.2 %	0.8 %
2023	3.5 %	-2.0 %	12.7 %	8.5 %	2023	-6.5 %	-5.4 %	13.3 %
2024	12.7 %				2024	14.9 %

Kid Interior Hemtex

Number of sales days Number of sales days

Year	Q1	Q2	Q3	Q4	Total	Year	Q1	Q2	Q3	Q4	Total
2023	77	71	79	79	306	2023	89	90	92	91	362
2024	75				75	2024	90				90

Year	Q1	Q2	Q3	Q4	Total	Year	Q1	Q2	Q3	Q4	Total
2023	77	71	79	79	306	2023	89	90	92	91	362
2024	75				75	2024	90				90

2023	Q1	Q2	Q3	Q4	Total	2023	Q1	Q2	Q3	Q4
New stores	0	1	0	1	2	New stores	1	0	0	2
Closed stores	1	0	0	0	1	Closed stores	2	1	0	0
Relocated stores	4	1	0	1	6	Relocated stores	1	3	3	3
Refurbished stores	3	3	1	3	10	Refurbished stores	1	0	1	1
Total number of stores	155	156	156	157		Total number of stores*	129	128	128	130
2024	Q1	Q2	Q3	Q4	Total	2024	Q1	Q2	Q3	Q4
New stores	1				1	New stores	0
Closed stores	1				1	Closed stores	1
Relocated stores	4				4	Relocated stores	1
Refurbished stores	3				3	Refurbished stores	2
Total number of stores	157					Total number of stores*	129
Total number of LFL stores	154					Total number of LFL stores*	126

Number of store projects Number of store projects

2023	Q1	Q2	Q3	Q4	Total	2023	Q1	Q2	Q3	Q4	Total
New stores	0	1	0	1	2	New stores	1	0	0	2	3
Closed stores	1	0	0	0	1	Closed stores	2	1	0	0	3
Relocated stores	4	1	0	1	6	Relocated stores	1	3	3	3	10
Refurbished stores	3	3	1	3	10	Refurbished stores	1	0	1	1	3
Total number of stores	155	156	156	157		Total number of stores*	129	128	128	130
2024	Q1	Q2	Q3	Q4	Total	2024	Q1	Q2	Q3	Q4	Total

New stores	1	1	New stores	0	0
Closed stores	1	1	Closed stores	1	1
Relocated stores	4	4	Relocated stores	1	1
Refurbished stores	3	3	Refurbished stores	2	2

Total number of stores *
Total number of LFL stores *

*incl franchise stores

Logistic costs - Sweden

									Total year	Total year
(MSEK)	Q1 2024	Q1 2023	Q2 2024	Q2 2023	Q3 2024	Q3 2023	Q4 2024	Q4 2023	2024	2023
Employee benefits expense	5 4			2 2		4 4		5 2	5 4	11 7
Third-party logistics expense		12 1		1 7						13 9
Central warehouse expenses*	7 7	2 0		9 9		8 3		7 6	7 7	27 8
Total incl . non-recurring items	13 0	14 2	0 0	13 7	0 0	12 7	0 0	12 8	13 0	53 4
Non-recurring items
Employee benefits expense		-0 8		-0 6						-1 4
Third-party logistics expense		-2 2		-1 7		0 4				-3 5
Central warehouse expenses		-0 5								-0 5
Total excl . non-recurring items	13 0	10 7	0 0	11 4	0 0	13 1	0 0	12 8	13 0	48 0

*Excluding IFRS 16. Please note that we in 2023 have lower rental costs due to agreed discount in the lease agreement.