Kid ASA

Quarterly Report • Feb 16, 2023

Kid ASA

Interim Report Q4 2022

Kid ASA

Interim report Q4 2022

Interim Report Q4 2022 Kid ASA

Dear Shareholders

In a challenging retail market, we are satisfied with presenting a revenue growth of 2.1% for Q4 2022 and a like-for-like growth of 1.8%. The main growth drivers were new product categories in addition to continued investments in physical stores and the e-commerce platform. On a full year-basis we managed to grow our revenues by 2.6% and ended the year on an all-time-high revenue of MNOK 3,178.

These are the key takeaways from the fourth quarter:

• Category development remain a key growth driver. Revenues from new categories launched during or after 2017 increased by 27.6% from MNOK 106.7¹ to MNOK 136.1¹ with the highest growth from 'Homewear' and Kitchen accessories, along with new initiatives under the 'Moment's concept'.
• Kid Extended was launched as a new concept during Q4 and has shown a promising start. Our European manufactured furniture like beds and sofas were launched in one pilot store and on our Norwegian e-commerce platform and has had a promising start. The gross margin for these new categories was in line with our expectation of 35-40% which includes logistics and last-mile distribution. We will continue to roll out the Kid Extended pilots as planned and expect to have launched a total of five Kid Extended stores in Norway by the end of Q2 2023.

Online sales grew by 18.2% compared to a strong fourth quarter last year, ending at MNOK 121.8 in Q4 2022 which is equivalent to an online share of 11,0%. Additionally, 'Click & Collect' represented MNOK 62.5 in store revenues and makes our online platform directly involved in 16,6% of total revenues during the quarter. We expect our omni channel strategy to be an important growth driver going forward.

• The historically high freight costs affected the Q4 margin negatively. However, as freight costs have been materially reduced on shipments arriving in the beginning of 2023 onwards, we expect a gradual margin
• Our strategy of increasing our footprint in Finland and Estonia remains, and we are happy to have opened one new store opening in Estonia, in addition to a larger store expansion in Finland during the quarter.
• The construction of our new warehouse in Sweden is progressing as planned and we expect to be fully operative in May. March and April will be a transition period as we will relocate the inventory operation from the current third-party logistics provider.
• Based on our CO2 roadmap, we have submitted both our near-term and long-term CO2 reduction targets to the Science Based Target Initiative. With the ambition and commitment to reduce the absolute CO2 emissions in scope 1-3 with 50% from 2020 to 2030, we are aligned with the 1,5 °C goal in the Paris Agreement.

We see a more challenging macro environment and greater uncertainty with respect to consumer spendings. However, we believe Kid stand its ground and we will keep focusing on improving our market position the coming quarters.

Yours sincerely,

improvement during 2023.

¹ Assuming SEK/NOK 1.00

Fourth quarter in brief

• Kid ASA Group revenues increased by +2.1%, like-for-like sales (including online sales) increased by 1.8% and online sales increased by 18.2%
• Gross margin decreased by -6.5 percentage points to 56.9% on the back of increased freight costs and increased rebating volumes
• OPEX-to-sales (excluding IFRS 16) was 36.7% (36.6%), and 36.7% (36.9%) when adding back last year's Covid-19 related cost reduction effects. OPEX-to-sales (excluding IFRS 16) on a full-year basis was 44.9% (43,8%)

Interim Report Q4 2022

• EBITDA decreased by MNOK 75.9 to MNOK 296.8 (MNOK 372.7) on the back of lower gross margin
• 2022 EPS of NOK 6.13 (NOK 9.46)
• Inventory reduced according to plan contributing to a very strong quarterly cashflow
• The board propose a half-year dividend payment of NOK 3.00 per share, payable in May 2023
• LTM gearing ratio excluding IFRS16 effects was 1.12 (0.52) by the end of the quarter

Alternative Performance Measures

			Interim Report Q4 2022	Kid ASA
Alternative Performance Measures
(Amounts in NOK million)	Q4 2022	Q4 2021	FY 2022	FY 2021
Revenue	1 108,6	1 100,4	3 178,0	3 097,1
Like-for-like growth including online sales ¹	1,8 %	0,2 %	3,1%	2,3 %
COGS	-478,1	-402,5	-1 331,6	-1 159,5
Gross profit	630,4	697,9	1 846,4	1 937,6
Gross margin (%)	56,9%	63,4%	58,1%	62,6%
Other operating income	1,2	6,2	5,2	10,0
Employee benefits expense	-176,4	-186,1	-629,9	-617,3
Other operating expense	-230,6	-216,7	-795,5	-739,8
Other operating expense - IFRS 16 effect	72,0	71,3	291,3	287,0
OPEX	-334,9	-331,4	-1 134,1	-1 070,0
EBITDA	296,8	372,7	717,5	877,6
EBITDA margin (%)	26,7%	33,7%	22,5%	28,2%
Depreciation	-19,3	-18,2	-74,8	-70,1
Depreciation - IFRS 16 effect	-68,1	-67,4	-273,5	-266,3
EBIT	209,4	287,1	369,2	541,2
EBIT margin (%)	18,9%	25,9%	11,6%	17,4%
Net financial income (expense)	-5,3	-5,0	-19,0	-29,1
Net financial expense - IFRS 16 effect	-7,5	-6,7	-28,5	-26,9
Share of result from joint ventures	1,6	0,0	-2,8	0,0
Profit before tax	198,2	275,3	318,9	485,2
Net income Earnings per share	159,0 3,91	219,1 5,39	249,2 6,13	384,4 9,46
Liabilities to financial institutions	-551,6	-546,6	-551,6	-546,6
Lease liabilities - IFRS 16 effect	-781,8	-767,3	-781,8	-767,3
Cash	75,7	239,3	75,7	239,3
Net interest bearing debt	-1 257,7	-1 074,6	-1 257,7	-1 074,6

Financial review for the Kid Group

Group revenues in fourth quarter 2022 increased by 2.1% compared to same quarter last year. EBITDA fell by MNOK 75.9, caused by a reduction in the gross margin of 6.5 percentage points.

The Covid-19 cost reduction effect in the quarter is estimated at MNOK 0.0 (MNOK 2.9).

Revenues

Group revenues increased by +2.1% (+2.5%) to MNOK 1,108.6 (MNOK 1,085.8) based on a constant currency calculation and increased by +0.7% when applying actual currency (MNOK 1,100.4). Group revenues on a like-for-like basis increased by +1.8% (+0.2%).

Both Kid Interior and Hemtex experienced a reduction in footfall to physical stores in October and November while footfall increased in December, particularly in Hemtex.

Both Kid Interior and Hemtex saw increased online revenues and Group online growth was +18.2%, corresponding to online revenues of MNOK 121.8 in Q4.

Revenues from new categories (categories launched during or after 2017) increased by 27.6% from MNOK 106.7¹ to MNOK 136.1¹ with the highest growth from 'Homewear' and Kitchen accessories, in addition to new initiatives under the 'Moment's concept'. Furthermore, the launch of a targeted assortment of European produced furniture on our e-commerce channel and, so far, in one Kid Extended store also added positively to the revenue growth.

Q4 2021 vs Q4 2022 revenue bridge, MNOK

¹ Assuming SEK/NOK 1.00

Gross profit decreased by MNOK 67.5 to MNOK 630.4 with gross margin at 56.9%, down 6.5 percentage points compared to Q4 2021.

The reduction was mainly caused by increased freight costs without corresponding price adjustments, but also more availability of campaign products and increased discounting compared with same quarter last year.

We now see freight spot rates at significantly lower levels on shipments booked for goods arriving in the first half of 2023. Consequently, as we turn the current inventory, we expect a gradual reduction in freight costs from Q2 2023.

Our financial objective of achieving a stable gross margin in line with the past 10 years, remains unchanged for 2023.

Gross margin:

Employee benefits expenses decreased by -5.2% to MNOK 176.4:

• -0.2 percentage points due to net new stores
• +1.3 percentage points in LFL stores mainly due to general salary increase, increased hours spent in Kid, and partly offset by a decrease in hours spent in Hemtex
• -6.7 percentage points due to lower bonus provisions
• +1.4 percentage points in headquarter costs mainly due to increased number of employees and general salary increase

-1.0 percentage points due to a weaker SEK/NOK in Q4 2022 compared to Q4 2021.

Other operating expenses including IFRS 16 increased by 9.0% to MNOK 158.5:

• +0.8 percentage points related to rental costs and other operating costs in net new stores
• +5.0 percentage points in LFL stores mainly related to store expansions in Hemtex, rental index adjustments, higher shared operating- and marketing costs as well as less Covid-19 rebates
• -2.1 percentage points in marketing costs
• +8.3 percentage points in other OPEX mainly related to increased logistics costs (MNOK 3.7) following higher inventory levels, increased cost of electricity (MNOK 2.4) and volume related online transportation costs (MNOK 2.4).
• -0.5 percentage points related to IFRS 16 effects
• -2.5 percentage points due to changes in SEK/NOK exchange rate, representing a decrease in other operating expenses of approximately MNOK 3.6.

OPEX (excluding IFRS 16) in percent of sales was 36.7% (36.6%).

EBITDA decreased by MNOK 75.9 to MNOK 296.8 due to the reduced gross margin.

Over the last three years retail growth has been very volatile. First the pandemic caused a close down followed by a very high growth rate and spending on home decoration. Last year's growth was challenged by energy price shocks and higher costs on food and other household items, but the group still manged to deliver a strong revenue growth. Despite challenges in the value chain caused by lock down and higher freight costs, EBITDA is increased by 27% aggregated over the last 3 years.

Net financial expense of MNOK 12.8 (MNOK 11.7) relates to net interest expenses of MNOK 6.8 (MNOK 4.1), interest income from joint venture of MNOK 0.3 (MNOK 0), net other financial expenses of MNOK 0.3 (MNOK 0.4), net foreign exchange gain of MNOK 1.5 (MNOK -0.5) and IFRS16 interest expense of MNOK 7.5 (MNOK 6.7).

A large portion of the term loans for the Group have a fixed interest rate below market levels. Reference is made to note 6 for further information.

Inventory level has been reduced, and we expect a further build-down towards more normalized levels in 2023. Christmas inventory accounted for approximately MNOK 42 at year-end which is MNOK 3 lower than last year.

Liquidity and borrowings. Excluding IFRS16 effects, net interest-bearing debt was MNOK 475.9 (MNOK 307.3) at the end of the quarter, corresponding to 1.12x (0.52x) of the LTM EBITDA excluding IFRS16.

After an additional short term credit facility agreement of MNOK 100 was signed in December 2022 the Group had cash and available credit facilities totalling MNOK 552.7 (MNOK 651.3) as of 31 December 2022. The Group has a satisfactory liquidity situation.

Capital Expenditures during Q4 amounted to MNOK 67.7 (MNOK 26.1) reflecting refurbishments and openings of stores of MNOK 38.3, investment in the new warehouse in Sweden MNOK 16.6, upgrades of the technical infrastructure and backoffice systems of MNOK 10.2 and the new ecommerce platform of MNOK 2.3.

Interim Report Q4 2022 Kid ASA

Segments: Key figures

			Interim Report Q4 2022
				Kid ASA
Segments: Key figures
KID Interior
(Amounts in NOK millions)	Q4 2022	Q4 2021	FY 2022	FY 2021
Revenue	703,4	687,4	1 983,6	1 883,5
Revenue growth	2,3 %	-1,0%	5,3 %	1,1 %
LFL growth including online sales COGS	0,9 % -294,7	-3,8% -251,9	3,2 % -828,0	-1,8% -702,3
Gross profit	408,7	435,5	1 155,6	1 181,2
Gross margin (%)	58,1 %	63,4 %	58,3 %	62,7 %
Other operating revenue Employee benefits expense	0,0 -114,8	0,0 -116,7	0,1 -392,2	0,5 -367,2
Other operating expense	-127,2	-115,8	-434,4	-395,9
Other operating expense - IFRS 16 effect	41,3	39,9	168,7	159,8
EBITDA	208,0	242,9	497,9	578,5
EBITDA margin (%)	29,6 %	35,3 %	25,1 %	30,7 %
No. of shopping days	81	81	308	308
No. of physical stores at period end	156	153	156	153
Hemtex
(Amounts in NOK millions)	Q4 2022	Q4 2021	FY 2022	FY 2021
Revenue	405,2	413,0	1 194,4	1 213,6
Revenue growth ¹	1,7 %	9,0 %	3,2 %	10,1 %
LFL growth including online sales ¹	3,5 %	7,8 %	2,8 %	9,8 %
COGS	-183,4	-150,6	-503,6	-457,2
Gross profit	221,8	262,4	690,8	756,4
Gross margin (%)	54,7 %	63,5 %	57,8 %	62,3 %
Other operating revenue	1,2	6,2	5,1	9,5
Employee benefits expense	-61,6	-69,3	-237,6	-250,0
Other operating expense Other operating expense - IFRS 16 effect	-103,3 30,7	-100,8 31,3	-361,3 122,6	-343,9 127,2
EBITDA	88,8	129,7	219,7	299,1
EBITDA margin (%)	21,8 %	30,9 %	18,3 %	24,5 %
No. of shopping days No. of physical stores at period end (excl. franchise)	91 119	91 121	362 119	362 121

Segment: Kid Interior

Revenues in Kid Interior increased by +2.3% (-1.0%) to MNOK 703.4 (MNOK 687.4). Like-for-like revenues including online increased by +0.9% (-3.8%).

Like-for-like revenues increased due to an increase in Online sales as well as increased revenues from New Initiatives.

Online revenues increased by +23.9% (+4.7%) to MNOK 63.8 (MNOK 51.5).

Gross profit decreased by MNOK -26.8 compared to last year due to a reduced gross margin. The gross margin decreased by 5.3 percentage points mainly caused by increased freight costs without corresponding price adjustments, as well as higher sales volumes with increased rebating of autumn and Christmas seasonal products compared with same quarter last year.

Employee expenses decreased by -1.6% to MNOK 114.8:

• +0.8 percentage points due to net new stores
• +2.7 percentage points in LFL stores mainly due to higher hourly cost and a small increase in number of working hours
• -9.5 percentage points due to lower bonus provisions for Q4
• +4.4 percentage points in headquarter costs due to increase in HQ staff as well as general salary increases

Year to date bonus provision amounted to MNOK 2.4 (MNOK 19.7).

Other operating expenses increased by +13.3% to MNOK 85.9 including IFRS 16:

+9.3 percentage points in rental costs mainly related to increased shared operating costs as well as net new stores and rental index adjustments on LFL-stores

• -1.4 percentage point from decreased marketing costs according to plan
• +6.9 percentage points in other OPEX as a result of increased electricity costs and transportation costs following higher Online sales
• -1.8 percentage points related to change in IFRS 16 effects

Covid-19 cost effect during Q4 has been estimated at MNOK 0.0 compared to MNOK 2.9 in Q4 last year.

EBITDA decreased by MNOK -34.9 to MNOK 208.0 (MNOK 242.9).

Capital Expenditure during Q4 amounted to MNOK 47.2 (MNOK 17.2) reflecting refurbishments and openings of stores of MNOK 18.1, the new warehouse of MNOK 16.6, upgrades of the technical infrastructure and back-office systems of MNOK 10.2 and the new ecommerce platform of MNOK 2.3.

One store was opened, three stores were relocated and one store was refurbished during the quarter. There were no closed stores. The total number of physical stores at the end of the quarter was 156 (153).

Segment: Hemtex

Revenues decreased by MNOK -7.8 to MNOK 405.2. In local currency, revenues increased by +1.7% to MSEK 426.5. Like-for-like revenues including online sales were up by +3.5% (+7.8%).

The revenue increase was mainly caused by an increase in December footfall to physical stores, increased Online sales and increased revenues from new initiatives. B2B-revenues from Hemtex24H decreased by MNOK 3.9 to MNOK 7.4 in Q4 2022 compared to Q4 2021.

Online revenues increased by +12.6% (-0.7%) to MNOK 58.0 (MNOK 51.5) based on a constant currency calculation.

Gross profit decreased by MNOK -40.6 mainly because the gross margin decreased by 8.8 percentage points on the back of increased freight costs without corresponding price adjustments, as well as higher sales volumes with increased rebating of autumn and Christmas seasonal products compared with same quarter last year.

Employee expenses decreased by -11.1% to MNOK 61.6:

• -2.1 percentage points due to net new and closed stores
• -0.7 percentage points in LFL stores due to a reduction in number of working hours partly offset by the general salary increase
• -2.1 percentage points due to lower bonus provisions
• -3.6 percentage points due to lower HQ costs
• -2.6 percentage points due to changes in SEK/NOK exchange rate

Year to date bonus provision amounted to MNOK 0.0 (MNOK 2.6).

Other operating expenses increased by 4.4% to MNOK 72.6 including IFRS 16:

• +2.5 percentage points in LFL stores mainly related to expansion of stores and rental index adjustments
• -2.7 percentage points related to less marketing activities according to plan
• +10.5 percentage points mainly related to increased third-party logistics cost driven by higher volumes, as well as higher online transport costs
• -5.1 percentage points due to changes in SEK/NOK exchange rate
• -0.8 percentage points related to IFRS 16 effects

Covid-19 cost reduction effect during Q4 has been estimated at MNOK 0.0 (MNOK 0.0).

EBITDA decreased by MNOK -40.9 to MNOK 88.8 (MNOK 129.7). When applying the SEK/NOK-rates from Q4 2021, the EBITDA in Q4 2022 is negatively affected by MNOK 3.3 due to a weaker SEK.

Capital Expenditure during Q4 amounted to MNOK 20.5 (MNOK 8.9) mainly related to refurbishments and opening of new stores.

Two stores were opened, two stores were relocated, and six stores were refurbished during the quarter. There were no closed stores in the period. The total number of physical stores (excl. 11 franchise stores) at the end of the quarter was 119 (121).

Q4 2021 vs. Q4 2022 EBITDA bridge, MNOK

Events after the end of the reporting period

The board will propose to the Annual General Meeting a dividend payment of NOK 3.00 payable in May 2023. Together with the prepayment of NOK 2.50 from December 2022 this represent 90% of the net profit - in line with our Financial Objectives.

The board of directors will also propose to the annual general meeting that the board is given the authority to distribute additional half-year dividend in November 2023 in accordance with the dividend policy and considering third quarter 2023 results.

The group paid a total of MNOK 291 in 2022 related to fixed store- and warehouse rent. The rent is subject to an annual index regulation. Due to unusual high inflation in all our markets in 2022, the index regulation for 2023 will be in the range of 8 – 10%.

There have been no other significant events after the end of the reporting period.

Lier, 16 February 2023

The board of Kid ASA

Kid ASA - Group figures Q4 2022 Financial statements

11

Interim Report Q4 2022

Kid ASA

Interim consolidated statement of profit and loss

				Interim Report Q4 2022	Kid ASA
Interim consolidated statement of profit and loss
(Amounts in NOK thousand)	Note	Q4 2022 Unaudited	Q4 2021 Unaudited	FY 2022 Unaudited	FY 2021 Audited
Revenue		1 108 573	1 100 391	3 177 991	3 097 096
Other operating revenue Total revenue		1 228 1 109 801	6 220 1 106 611	5 236 3 183 227	10 010 3 107 106
Cost of goods sold		-478 132	-402 507	-1 331 613	-1 159 506
Employee benefits expense		-176 390	-186 051	-629 892	-617 303
Depreciation and amortisation expenses	9	-87 408	-85 587	-348 296	-336 376
Other operating expenses Total operating expenses		-158 519 -900 450	-145 380 -819 525	-504 198 -2 813 999	-452 730 -2 565 916
Operating profit		209 351	287 086	369 228	541 190
Financial income		3 482	2 404	4 948	7 361
Financial expense		-16 261	-14 141	-52 476	-63 384
Net financial income (+) / expense (-)		-12 779	-11 738	-47 528	-56 023
Share of result from joint ventures		1 618	0	-2 787	0
Profit before tax		198 190	275 348	318 913	485 167
Income tax expense Net profit (loss) for the period		-39 157 159 034	-56 226 219 122	-69 668 249 245	-100 741 384 426
Interim condensed consolidated statement of
comprehensive income
Profit for the period		159 034	219 122	249 245	384 426
Other comprehensive income		-98 925	7 761	35 415	75 629
Tax on comprehensive income		20 165	-1 040	-9 749	-16 188
Total comprehensive income for the period Attributable to equity holders of the parent		80 274 80 274	225 843 225 843	274 911 274 911	443 867 443 867
Basic and diluted Earnings per share (EPS):		3,91	5,39	6,13	9,46

Interim consolidated statement of financial position

		Interim Report Q4 2022
			Kid ASA
Interim consolidated statement of financial position
(Amounts in NOK thousand)	Note	31.12.2022	31.12.2021
Assets		Unaudited	Audited
Goodwill Trademark	9	65 479	70 286
Other intangible assets	9	1 510 224	1 511 788
Deferred tax asset	9	35 326 4 344	19 096 22 968
Total intangible assets		1 615 373	1 624 140
Right of use asset	9	760 734	756 941
Fixtures and fittings, tools, office machinery and equipment	9	237 245	203 158
Total tangible assets		997 979	960 099
Investments in associated companies and joint ventures	10	0	30
Loans to associated companies and joint ventures	10	23 795	0
Total financial fixed assets		23 795	30
Total fixed assets		2 637 148	2 584 268
Inventories		668 753	646 764
Trade receivables		12 094	21 999
Other receivables		32 756	25 023
Derivatives		59 449	17 439
Totalt receivables		104 299	64 461
Cash and bank deposits		75 721	239 331
		848 774	950 556
Total currents assets

Interim consolidated statement of financial position

		Interim Report Q4 2022
			Kid ASA
Interim consolidated statement of financial position
(Amounts in NOK thousand)	Note	31.12.2022	31.12.2021
Equity and liabilities		Unaudited	Audited
Share capital		48 770	48 770
Share premium		321 050	321 050
Other paid-in-equity		64 617	64 617
Total paid-in-equity		434 440	434 440
Other equity		838 940	828 223
Total equity		1 273 380	1 262 663
Deferred tax		322 723	332 280
Total provisions		322 723	332 280
Lease liabilities		523 528	517 550
Liabilities to financial institutions	6	521 646	451 628
Total long-term liabilities		1 045 175	969 177
Lease liabilities		258 257	249 737
Liabilities to financial institutions	6	30 000	95 000
Trade payable		122 459	159 751
Tax payable		57 745	90 335
Public duties payable		167 139	172 851
Other short-term liabilities		201 815	197 865
Derivatives		7 229	5 166
Total short-term liabilities		844 644	970 705
		2 212 542	2 272 162
Total liabilities

Interim consolidated statement of changes in equity

(Amounts in NOK thousand)	Total paid-in equity	Other equity	Total equity
Balance at 1 Jan 2021	434 440	750 164	1 184 601
Profit for the period YTD 2021	0	384 426	384 426
Other comprehensive income / Cash Flow Hedges	0	59 440	59 440
Dividend	0	-365 807	-365 807
Balance at 31 Des 2021	434 440	828 223	1 262 663
Balance at 1 Jan 2022	434 440	828 223	1 262 663
Profit for the period YTD 2022	0	249 245	249 245
Other comprehensive income / Cash Flow Hedges	0	25 666	25 666
Dividend	0	-264 194	-264 194
Balance at 31 Des 2022	434 440	838 940	1 273 380

Interim consolidated statement of cash flows

(Amounts in NOK thousand)	Note	Q4 2022	Q4 2021	FY 2022	FY 2021
		Unaudited	Unaudited	Unaudited	Audited
Cash Flow from operation
Profit before income taxes		198 191	275 348	318 914	485 166
Taxes paid in the period		-8 399	-40 947	-105 571	-105 964
Depreciation & Impairment	9	87 408	85 587	348 296	336 376
Effect of exchange fluctuations		3 197	7 541	1 341	16 861
Change in net working capital
Change in inventory		199 196	-66 513	-29 170	-180 317
Change in trade debtors		3 841	-7 375	9 135	-4 448
Change in trade creditors		9 000	81 689	-34 347	71 228
Change in other provisions ¹		89 389	128 902	39 259	54 798
Net cash flow from operations		581 822	464 231	547 858	673 701
Cash flow from investment
Purchase of fixed assets	9	-57 750	-23 774	-119 264	-92 614
Loans to associated companies and joint ventures	10	281		-23 795
Net Cash flow from investments		-57 470	-23 774	-143 059	-92 614
Cash flow from financing
Proceeds from long term loans		50 000	0	230 000	130 000
Repayment of revolving credit facility		-130 000	0	-195 119	-65 000
Repayment of Term Loans		-20 000	-30 000	-30 000	-38 678
Overdraft facility		-170 694		0	0
Lease payments for principal portion of lease liability		-64 565	-65 795	-263 350	-264 951
Dividend payment		-101 613	-186 968	-264 194	-365 807
Net interest		-12 599	-10 549	-46 435	-39 283
Net cash flow from financing		-449 472	-293 312	-569 097	-643 719
Cash and cash equivalents at the beginning of the period		6 481	93 031	239 331	301 276
Net change in cash and cash equivalents		74 881	147 146	-164 299	-62 628
Exchange gains / (losses) on cash and cash equivalents		-5 640	-846	690	683
Cash and cash equivalents at the end of the period		75 721	239 331	75 721	239 331

¹ Change in other provisions includes other receivables, public duties payable, short-term liabilities and accrued interest.

Note 1 Corporate information

Kid ASA and its subsidiaries` (together the "company" or the "Group") operating activities are related to the resale of home textiles in Norway, Sweden, Finland and Estonia. The Kid Group offers a full range of home and interior products, including textiles, curtains, bed linens, smaller furniture, accessories and other interior products. We design, source, market and sell these products through our stores as well as through our online sales platforms.

All amounts in the interim financial statements are presented in NOK 1,000 unless otherwise stated.

Due to rounding, there may be differences in the summation columns.

Note 2 Basis of preparations

These interim financial statements for the fourth quarter of 2022 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2021, which have been prepared in accordance with IFRS as adopted by the European Union ('IFRS').

Note 3 Accounting policies

The accounting policies applied in the preparation of the consolidated interim financial statements are consistent with those applied in the preparation of the annual IFRS financial statements for the year ended 31 December 2021. Amendments to IFRSs effective for the financial year ending 31 December 2022 are not expected to have a material impact on the group.

Note 4 Estimates, judgments and assumptions

Note 5 Segment information

Q4 2022

Note 4 Estimates, judgments and assumptions
The Preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these interim financial statements the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2021.
Note 5 Segment information
Kid Group reports segments in accordance with how the chief operating decision maker makes, follows up and evaluates its decisions. Within the Group, Kid Interior relates to Norway and Hemtex relates to Sweden with a few stores in Estonia and Finland.
The Group also sells home textiles through the Group's online websites. Over 98% of the products are sold under own brands.
Q4 2022
(Amounts in NOK thousand)	KID Interior	Hemtex	Total
Revenue	703 385	405 188	1 108 573
COGS	-294 727	-183 405	-478 132
Gross profit	408 658	221 783	630 441
Other operating revenue	44	1 184	1 228
Operating expense (OPEX)	-200 699	-134 210	-334 909
EBITDA	208 003	88 757	296 760
Operating profit	157 321	52 030	209 351
Gross margin (%)	58,1 %	54,7 %	56,9 %
OPEX to sales margin (%) EBITDA margin (%)	28,5 % 29,6 %	33,1 % 21,8 %	30,2 % 26,7 %
Inventory	421 992	246 762	668 753

Note 6 Loans and borrowings

Financing agreements

Interim Report Q4 2022 Kid ASA Note 6 Loans and borrowings Financing agreements An additional short term credit facility agreement of MNOK 100 was signed in December 2022. At the balance sheet date, the Group has the following borrowing facilities Utilised Available 31.12.2022 Facility Interest Repayment (Amounts in NOK thousand) Maturity Total term loan Instalments¹ 551 700 551 700 15.05.2026 Of which secured with fixed interest rate: Denominated in NOK Fixed rate at 1,876% + 1.25% ² 395 000 495 000 Denominated in SEK Fixed rate at 1,460% + 1.25% ³ 55 000 55 000 Revolving credit facility At maturity - 130 000 3 months Nibor + 1.10% 29.04.2024 Short term credit facility At maturity 100 000 3 months Nibor + 1.35% 31.12.2023 Overdraft At maturity 0 247 000 1 week IBOR + 1.10% 12 months 551 700 1 028 700 ¹ NOK 30M in annual instalments with bi-annual payments. ²Fixed interest rate is secured through an interest rate swap of MNOK 395 maturing May 2029 and subject to hedge accounting ³Fixed interest rate and denomination in SEK is hedged through a cross currency interest swap of MNOK 115 maturing November 2024 The effect of the change in fair value of the cross currency interest swap is booked against foreign exchange gains/losses in Statement of profit and loss Note 7 Earnings per share Q4 2022 Q4 2021 FY 2022 FY 2021 Weighted number of ordinary shares 40 645 162 40 645 162 40 645 162 40 645 162 Net profit or loss for the year 159 034 219 122 249 245 384 426 Earnings per share (basic and diluted) (Expressed in NOK per share) 3,91 5,39 6,13 9,46 Note 8 Related party transactions
The Group's related parties include its associates, joint ventures, key management and members of the board.

Note 7 Earnings per share

Q4 2022 Q4 2021 FY 2022 FY 2021 Note 8 Related party transactions The Group's related parties include its associates, joint ventures, key management and members of the board. None of the Board members have been granted loans or guarantees in the current quarter. Furthermore, none of the Board members are included in the Group's pension or bonus plans. The following table provides the total amount of transactions that have been entered into with related parties during the total year of 2022 and 2021: Related Party FY 2022 FY 2021	Note 7 Earnings per share
23 795
Total 23 795 0	Prognosgatan Holding AS (Loan)		0

Note 8 Related party transactions

Total	23 795	0

Note 9 Fixed assets and intangible assets

					Interim Report Q4 2022
						Kid ASA
	Note 9 Fixed assets and intangible assets
		Right of use
(amounts in NOK thousand) Balance 01.01.2022		Asset 756 941	PPE 203 158	Trademark 1 511 788	Other Intangibles 19 096	Goodwill 70 286
Exchange differences		-6 067	-3 867	-1 564	-775	-4 807
Additions, disposals and adjustments		283 391	108 854		20 871
Depreciation and amortisation		-273 530	-70 900		-3 865
Balance 31.12.22		760 734	237 245	1 510 224	35 327	65 479
		Right of use
(amounts in NOK thousand)		Asset	PPE	Trademark	Other Intangibles	Goodwill
Balance 01.01.2021 Exchange differences		821 683 -19 929	199 513 -2 569	1 515 484 -3 696	5 622 -260	72 281 -1 995
Additions, disposals and adjustments		221 459	74 541		16 223
		-266 273	-68 327		-2 489
Depreciation and amortisation			203 159	1 511 788	19 096	70 286

	Right of use
	Asset	PPE	Trademark	Other Intangibles	Goodwill
Balance 01.01.2021	821 683	199 513	1 515 484	5 622	72 281
Exchange differences	-19 929	-2 569	-3 696	-260	-1 995

Note 10 Investments in subsidiaries and joint ventures

Balance 01.01.2022		756 941	203 158	1 511 788	19 096	70 286
Exchange differences		-6 067	-3 867	-1 564	-775	-4 807
		Right of use
		Asset	PPE	Trademark	Other Intangibles	Goodwill
Balance 01.01.2021		821 683	199 513	1 515 484	5 622	72 281
Exchange differences		-19 929	-2 569	-3 696	-260	-1 995
Note 10 Investments in subsidiaries and joint ventures The group had the following subsidiaries as of 31 December 2022:
					Proportion of shares directly held by parent (%)
Kid Interiør AS	Norway	Interior goods retailer				100
Kid Logistikk AS	Norway	Logistics				100
Kid Eiendom AS*	Norway	Logistics				100
Hemtex AB	Sweden	Interior goods retailer				100
Hemtex OY	Finland	Interior goods retailer				100
Hemtex International AB	Sweden	Non operating company				100
*Hemtex Logistikk AS changed Company name to Kid Eiendom AS during the second quarter All subsidiary undertakings are included in the consolidation. The group had the following joint ventures on 31 December 2022:
		Place of business Nature of relationship		Measurement method	Ownership share	Carrying amount
Name
Prognosgatan Holding AS	Norway	Joint venture		Equity method	50 %	-

Name	Place of business Nature of relationship	Measurement method	Ownership share	Carrying amount

RESPONSIBILITY STATEMENT KID ASA

We confirm, to the best of our knowledge, that the financial statements for the period 1 January to 31 December 2022 have been prepared in accordance with current applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the entity and the group taken as a whole. We also confirm that the Board of Directors' Report includes a true and fair review of the development and performance of the business and the position of the entity and the group, together with a description of the principal risks and uncertainties facing the entity and the group.

Lier, 16 February 2023

The board of Kid ASA

Definitions

• Like-for-like revenue are revenue from stores that were in operation from the start of last fiscal year all through the end of the current reporting period.
• Revenue growth represents the growth in revenue for the current reporting period compared to the comparative period the previous year. Revenue growth for Hemtex is calculated in constant currency. Revenue growth is an important key figure for the KID Group and the user of financial statements as it illustrates the underlying organic revenue growth.
• Gross profit is defined as revenue minus the cost of goods sold (COGS). The gross profit represents sales revenue that the Group retains after incurring the direct costs associated with the purchase and distribution of the goods.
• Gross margin is defined as Gross profit divided by Revenue. The gross margin reflects the percentage margin of the sales revenue that the Group retains after incurring the direct costs associated with the purchase and distribution of the goods and is an important internal KPI.
• OPEX to sales margin is the sum of Employee benefits expense and Other operating expenses divided by Revenue. The OPEX to sales margin measures operating cost efficiency as percentage of sales revenue and is an important internal KPI.
• EBITDA is earnings before tax, interests, amortisation of other intangibles and depreciation and write-down of property, plant and equipment and right-of-use assets. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational profitability on a more variable cost basis as it excludes amortisation and depreciation expense related to capital expenditure.
• EBITDA margin is EBITDA divided by Total revenue. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational efficiency on a more variable cost basis as is excludes amortisation and depreciation expense related to capital expenditure.
• EBIT (earnings before interest, tax) is operating profit. The performance measure is considered useful to the users of the financial statements when evaluating operational profitability.
• EBIT margin is EBIT divided by Total revenue. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational efficiency.
• Net Capital expenditure represent the cash flow from the investment spending in property, plant and equipment and other intangibles, less sale such asset.
• Net Income is profit (loss) for the period.

Constant currency is exchange rates that the Group uses to eliminate the effect of exchange rates fluctuations when calculating financial performance numbers.

Adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT and adjusted EBIT margin are no longer included in the Alternative Performance Measures because these performance measures are no longer considered relevant. Previous adjustments were due to integration costs. There were no such integration costs in 2021 and in the comparable periods these costs are not considered material.

Disclaimer

This report includes forward-looking statements which are based on our current expectations and projections about future events. All statements other than statements of historical facts included in this report, including statements regarding our future financial position, risks and uncertainties related to our business, strategy, capital expenditures, projected costs and our plans and objectives for future operations, including our plans for future costs savings and synergies may be deemed to be forward-looking statements. Words such as "believe," "expect," "anticipate,", "may," "assume," "plan," "intend," "will," "should," "estimate," "risk" and similar expressions or the negatives of these expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. You should not place undue reliance on these forward-looking statements. In addition, any forward-looking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statements set forth in this notice.

Kid ASA, Gilhusveien 1, 3426 Gullaug Customer service: +31 00 20 00 www.kid.no