Kid ASA

Quarterly Report • May 19, 2022

Kid ASA

Interim report Q1 2022

Dear Shareholders

Q1 was yet another strong quarter for the Kid Group. Continued revenue growth and maintained strong gross margin. Costs increased mainly due to one-off Covid-19 cost reduction effects last year. These are the key takeaways from the first quarter:

• New products and categories remain a significant growth driver. Categories launched since 2017 have added 257 million in revenues in 2021 and 58 million in Q1 2022, compared to 44 million in Q1 2021. These categories include kitchen accessories, lamps and lightning, larger carpets and outdoor furniture. Based on this we are further expanding these categories and launching new ones. Some of the new categories are currently available only online and in selected stores, but we intend to widen the distribution and increase the areas of our smaller stores to make room for our full assortment.
• To mitigate the risk of delays we decided to place orders earlier than normal this year. Our spring collection was somewhat delayed, as expected, but our summer collection has so far been delivered to our warehouses on time, which has contributed to increased inventory compared to last year.
• We have reviewed the potential for new stores in our current markets. Based on this analysis, we have increased the total number of potential stores from approx. 300 to approx. 320. Furthermore, refurbishing and expanding our current stores continue to drive growth, and we have therefore decided to increase our maintenance CapEx from the current level of MNOK 80-90 to up till MNOK 100 on an annual basis. As per today, we have signed up for 17 stores to be refurbished, relocated and/or expanded in 2022.
• The new warehouse in Sweden is proceeding according to plan, and we are still aiming for opening in Q2 2023. We have now signed an agreement to install Autostore inventory automation system as in our warehouse in Norway. The total investments related to the new warehouse, including offices and inventory fittings and systems, is estimated at NOK 100 million which will be financed through increased long-term debt.
• As the storage capacity in Norway is about to reach its limits during peak seasons, we will from Q3 2023 also use the new warehouse in Sweden to handle part of the Kid Interior inventory which will also increase flexibility in our inventory across markets.
• 52% (40%) of our assortment in 2021 was labelled "act with the heart" which contributes to a positive impact on both people and planet. Our sustainable goals going forward include increased share of such products, and during 2022 we will set Science Based Targets to reduce our climate emissions according to the Paris Agreement. Furter details are available in our Sustainability Report for 2021.

We have delivered a good start to the spring and summer season, and we are looking forward to continuing presenting new collections and categories and remain confident that these will keep on inspiring current and new customers.

Yours sincerely,

First quarter in brief

• Kid ASA ✓ Group revenues increased by 9.3%, like-for-like growth (including online sales) increased by 7.3% and online sales decreased by -12.1%.
• ✓ Gross margin maintained (+0.2 percentage points) at 61.2% on the back of increased freight costs and raw materials cost.
• ✓ OPEX-to-sales (excluding IFRS 16) was 55.3% (54.3%), and 55.5% (55.6%) when adding back last year's Covid-19 related cost reduction effects.
• ✓ EBITDA decreased by MNOK 2.3 to MNOK 110.4 (MNOK 112.7)
• ✓ LTM gearing ratio excluding IFRS16 effects was 1.06 (0.75) by the end of the quarter

2,9 %

0,1 % 0,2 %

2021 2022 2021 2022 2021 2022 2021 2022 Q1 Q2 Q3 Q4

9,3 % 7,3 %

299

751

^{326 367 418 452}

-

2021 2022 2021 2022 2021 2022 2021 2022 Q1 Q2 Q3 Q4 Kid Interior Hemtex

24 4 238 258

^{570 605} 676

7 0 7 6 ^{119 147 243} 4 3 ³⁴ 54

113 110 173

7 3

2021 2022 2021 2022 2021 2022 2021 2022 Q1 Q2 Q3 Q4 Kid Interior Hemtex

220

130

373

LFL growth (%), Group Revenue, MNOK EBITDA, MNOK No. of physical stores (period end)

Interim Report Q1 2022

687

-

413

1100

-

3

Alternative Performance Measures

(Amounts in NOK million)	Q1 2022	Q1 2021	FY 2021
Revenue	604,6	569,8	3 097,1
Like-for-like growth including online sales ¹	7,3 %	9,3 %	-1,8 %
COGS	-234,5	-222,0	-1 159,5
Gross profit	370,1	347,8	1 937,6
Gross margin (%)	61,2%	61,0%	62,6%
Other operating income	0,7	1,3	10,0
Employee benefits expense	-153,1	-140,0	-617,3
Other operating expense	-181,2	-169,7	-739,8
Other operating expense - IFRS 16 effect	73,9	73,2	287,0
OPEX	-260,4	-236,4	-1 070,0
EBITDA	110,4	112,7	877,6
EBITDA margin (%)	18,2%	19,7%	28,2%
Depreciation	-18,7	-16,9	-70,1
Depreciation - IFRS 16 effect	-67,9	-66,1	-266,3
EBIT	23,7	29,7	541,2
EBIT margin (%)	3,9%	5,2%	17,4%
Net financial income (expense)	-4,8	-17,3	-29,1
Net financial expense - IFRS 16 effect	-6,8	-7,1	-26,9
Share of result from joint ventures	-0,7	0,0	0,0
Profit before tax	11,5	5,3	485,2
Net income	8,7	3,8	384,4
Earnings per share	0,21	0,09	9,46
Liabilities to financial institutions	-620,0	-513,6	-546,6
Lease liabilities - IFRS 16 effect	-748,9	-760,9	-767,3
Cash	0,0	91,4	239,3
Net interest bearing debt	-1 368,9	-1 183,1	-1 074,6

¹ Calculated in constant currency

Financial review for the Kid Group

Q1 2022 was the 8th consecutive quarter with yearon-year EPS growth. Last year's COVID-19 restrictions with temporary store closures, as well as the timing of Easter (which occurred a few weeks later in 2022) make comparison between Q1 2022 and Q1 2021 challenging.

The reduction in EBITDA of MNOK 2.3 was mainly caused by lower cost base last year following bonus reversals and one-off effects related to COVID-19 cost reductions. The Covid-19 cost reduction effect in the quarter is estimated at MNOK 1.3 (MNOK 7.2).

Revenues

Group revenues increased by +9.3% (10.4%) to MNOK 604.6 (MNOK 569.8) based on a constant currency calculation, and by +6.2% when applying actual currency. Group revenues on a like-for-like basis were up by +7.3% (9.3%).

Both Kid Interior and Hemtex experienced significant increase in footfall to physical stores while Online -traffic was reduced.

Q1 2021 vs Q1 2022 revenue bridge, MNOK

Gross profitincreased by MNOK 22.3 to MNOK 370.1 with Gross margin at 61.2%, up 0.2 percentage points compared to Q1 2021.

Freight costs remained high in Q1 2022 and is expected to remain at these higher levels going forward. The raw materials cost has also increased while FX-rates have improved (stronger NOK/USD compared to last year).

We have planned for increased sourcing costs, and we therefore remain confident of our Financial Objectives, despite increased raw material costs.

Employee benefits expenses increased by +9.4% to MNOK 153.1:

• +2.4 percentage points due to net new stores
• +1.9 percentage points in LFL stores mainly due to reduced opening hours and closed stores last year as well as general salary increase partly offset by Covid-19 governmental support of MNOK 1.0 this year.
• +1.8 percentage points mainly related to lower reversal of bonus accrual for 2021 compared to the amount reversed last year
• +3.3 percentage points in headquarter costs mainly due to increased number of personnel at HQ, increased logistics activity and general salary increase as well as less Covid-19 cost reduction effect this quarter of MNOK 1.1

FX-effects represented a decrease in employee benefit expenses of approximately MNOK 3.9 following a weaker SEK/NOK in Q1 2022 compared to Q1 2022.

Other operating expenses including IFRS 16 increased by 11.3% to MNOK 107.3:

• +1.0 percentage points related to other operating costs in net new stores

• +5.8 percentage points mainly related to less Covid-19 rental rebates of MNOK 2.8 and higher shared operating- and marketing costs in store rentals
• +2.8 percentage points from increased marketing costs according to plan
• +1.7 percentage points mainly related to increase in third party logistics costs, electricity costs, IT-costs as well as lower Covid-19 effects of MNOK 0.8

FX-effects accounted for a decrease in Other operating expenses of approximately MNOK 5.2 following a weaker SEK/NOK in Q1 2022 compared to Q1 2021.

OPEX (excluding IFRS 16) to sales margin was 55.3% (54.0%). When adding back Covid-19 related costs reduction effects OPEX to sales margin was 55.5% (55.6%).

EBITDA decreased by MNOK 2.3 to MNOK 110.4 due to higher operating expense as described above.

Net financial expense of MNOK 11.6 (MNOK 24.3) relates to net interest expenses of MNOK 3.4 (MNOK 3.5), net other financial expenses of MNOK 1.6 (MNOK 0.3), net foreign exchange gain of MNOK 0,2 (MNOK -13.4) and IFRS 16 interest expense of MNOK 6.8 (MNOK 7.1).

Liquidity and borrowings. Inventory is at a higher level compared to last year due to earlier placement of orders and earlier deliveries of goods as well as new assortment and new stores.

Excluding IFRS16 effects, net interest-bearing debt was MNOK 620,0 (MNOK 422.2) at the end of the quarter, corresponding to 1.06x (0.75x) of the LTM EBITDA excluding IFRS16.

The Group had cash and available credit facilities of MNOK 338.7 (MNOK 468.4) as of 31 March 2022. The Group has a satisfactorily liquidity situation.

Capital Expenditures during Q1 amounted to MNOK 14.4 (MNOK 18.2) of which investment in the new ecommerce platform accounted for MNOK 1.6 (MNOK 2.8) and the remaining MNOK 12.8 (MNOK 15.4) mainly reflect store openings and refurbishments.

Interim Report Q1 2022 Kid ASA

Segments: Key figures

KID Interior
(Amounts in NOK millions)	Q1 2022	Q1 2021	FY 2021
Revenue	366,8	326,1	1 883,5
Revenue growth	12,5 %	13,6 %	1,1 %
LFL growth including online sales	10,7 %	10,3 %	-1,8%
COGS	-141,7	-126,9	-702,3
Gross profit	225,0	199,2	1 181,2
Gross margin (%)	61,4 %	61,1 %	62,7 %
Other operating revenue	0,1	0,5	0,5
Employee benefits expense	-94,2	-80,8	-367,2
Other operating expense	-97,6	-89,3	-395,9
Other operating expense - IFRS 16 effect	42,6	40,3	159,8
EBITDA	75,9	69,9	578,5
EBITDA margin (%)	20,7 %	21,4 %	30,7 %
No. of shopping days	76		308
No. of physical stores at period end	153	77 148	153
Hemtex (Amounts in NOK millions)	Q1 2022	Q1 2021	FY 2021
Revenue	237,8	243,7	1 213,6
Revenue growth ¹
	4,8 %	6,4 %	10,1 %
LFL growth including online sales ¹ COGS	2,0 % -92,8	7,8 % -95,2	9,8 % -457,2
Gross profit	145,1	148,6	756,4
Gross margin (%)	61,0 %	61,0 %	62,3 %
Other operating revenue	0,7 -59,0	0,8 -59,2	9,5 -250,0
Employee benefits expense Other operating expense	-83,6	-80,3	-343,9
Other operating expense - IFRS 16 effect	31,3	32,9	127,2
EBITDA	34,5	42,8	299,1
EBITDA margin (%)	14,5 %	17,5 %	24,5 %
No. of shopping days	89	89	363

¹ Calculated in local currency

Segment: Kid Interior

Revenues in Kid Interior increased by +12.5% to MNOK 366.8. Like-for-like revenues including online increased by +10.7%.

The increase in Q1 this year compared to Q1 last year was mainly due to an increase in footfall to physical stores. Average revenue per customer remained stable for the quarter.

In Q1 last year, 39 stores were temporarily closed on average from 22 January to 31 March due to governmental COVID-19 restrictions. Consequently, traffic to stores were negatively influenced whereas Online traffic was positively influenced during Q1 last year. All stores were fully opened from 6 May 2021.

Online revenues decreased by -0.3% to MNOK 31.7.

Gross profit increased by MNOK 24.0 compared to last year due to increased footfall and revenues. The gross margin decreased by 0.3 percentage points on the back of increased freight costs, as well as increased costs of raw materials which were partly offset by improved FX-rate and successful campaigning.

Employee expenses increased by 16.6% to MNOK 94.2:

• +2.7 percentage points due to net new stores
• +6.3 percentage points in LFL stores because of closed stores last year due to Covid restrictions, short-term COVID-19 related sick leave as well as general salary increase
• +4.0 percentage points mainly due to lower reversal of bonus accrual for 2021 compared to the amount reversed last year for 2020. At year end 2021 the total bonus provision was MNOK 19.7. Based on final calculations MNOK 1.6 (MNOK 5.4) was reversed in Q1 2022.
• +3.7 percentage points in headquarter costs due to increased activity in the logistics department, lower Covid-19 cost reduction effects this year as well as general salary increases and higher regulatory pension expenses.

Year to date bonus provision amounted to MNOK 0.6 (MNOK 1.2) of which store bonuses was MNOK 0.6 (MNOK 0.3), other management bonuses was MNOK 0 (MNOK 0.9).

Other operating expenses increased by 12.2% to MNOK 55.0 including IFRS 16:

• 3.3 percentage points mainly related to increased shared operating- and marketing costs related to rental for both LFL and new stores, partly offset by a reduction in revenue based rental costs
• +1.6 percentage points related to a planned increase in marketing costs
• +7.3 percentage points in other OPEX as a result of increased electricity costs as well as use of temporary consultants and IT licenses related to the new e-commerce platform

Covid-19 cost effect during Q1 has been estimated at MNOK o (MNOK 4.7), of which reduced employee expenses (social- and travelling costs) last year accounted for MNOK 3.2.

EBITDA increased by MNOK 6.0 to MNOK 75.9 (MNOK 69.9).

Q1 2021 vs. Q1 2022 EBITDA bridge, MNOK

Capital Expenditure during Q1 amounted to MNOK 7.7 (MNOK 12.4) mainly reflecting refurbishments of stores and investments in the new ecommerce platform.

Five stores were refurbished during the first quarter. There were no closed, opened or relocated stores. The total number of physical stores at the end of the quarter was 153 (148).

Segment: Hemtex

Revenues decreased by MNOK -5.9 to MNOK 237.8. In local currency revenues increased by +4.8% to MSEK 251.1. Like-for-like revenues including online sales were up by 2.0%.

The revenue growth was mainly caused by an increase in footfall to physical stores. Even though all stores were open all through the quarter last year (except for the five stores in Estonia), governmental restrictions caused a material drop in footfall to physical stores, while online revenues were unusual high.

Online revenues decreased by -16.4% (+84.3%) to MNOK 36.7.

Gross profit decreased by MNOK -3.5 due to decreased revenues. The gross margin was unchanged compared to last year due to favourable product mix and improved FX-rates, partly offset by increased freight costs and costs of raw material.

Employee expenses decreased by -0.3% to MNOK 59.0:

• +2.2 percentage points due to net new and closed stores
• +1.0 percentage points in LFL stores, mainly due to reduced opening hours last year and general salary increases offset by Covid-19 governmental support
• +3.1 percentage points due to more group services provided by HQ in Norway, partly offset by fewer HQ employees in Borås
• -6.6 percentage points due to changes in NOKSEK exchange rate

Year to date bonus provision amounted to MNOK 0.0 (MNOK 0.5).

Other operating expenses increased by 10.3% to MNOK 52.3 including IFRS 16:

• +10.2 percentage points related to less Covid 19 rental rebates this year
• +6.4 percentage points related to a planned increase in marketing costs
• +5.0 percentage points mainly related to increased third-party logistics cost driven by higher volumes and unit size as well as increased costs for packaging. In addition, there are increased use of external hours due to short-term COVID-19 related sick leave
• -11.1 percentage points due to changes in NOKSEK exchange rate

Covid-19 cost reduction effect during Q1 has been estimated at MNOK 1.3 (MNOK 2.5).

EBITDA decreased by MNOK -8.3 to MNOK 34.5 (MNOK 42.8). When applying the NOK/SEK-rates from Q1 2021 ("constant currency"), the EBITDA in Q1 2022 would have been MNOK 36.7 representing a decrease of MNOK 6.1 from Q1 2021.

Q1 2021 vs. Q1 2022 EBITDA bridge, MNOK

Capital Expenditure during Q1 amounted to MNOK 6.7 (MNOK 5.8) mainly related to refurbishment and relocation of stores.

Two stores were closed, one store was refurbished, and three stores were relocated during the quarter. There were no new stores in the period. The total number of physical stores (excl. 11 franchise stores) at the end of the quarter was 119 (117).

Events after the end of the reporting period

Following the pandemic situation, the global overseas freight situation and the strict COVID-19 regulatory situation in China have caused delays in the value chain, as well as increased freight rates. Going forward, we have decided to place orders earlier than we normally would in order to remedy these effects.

Group revenues in constant currency were up by +14.4% in April and up by +10.6% year-to-date per April.

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

Lier, 19 May 2022

The board of Kid ASA

Kid ASA - Group figures Q1 2022 Financial statements

11

Interim Report Q1 2022

Kid ASA

Interim consolidated statement of profit and loss

(Amounts in NOK thousand)	Note	Q1 2022	Q1 2021	FY 2021
		Unaudited	Unaudited	Audited
Revenue		604 589	569 815	3 097 096
Other operating revenue		710		10 010
Total revenue			1 331 571 146
		605 299		3 107 106
Cost of goods sold		-234 501	-222 043	-1 159 506
Employee benefits expense		-153 134	-139 958	-617 303
Depreciation and amortisation expenses	9	-86 667	-83 047	-336 376
Other operating expenses		-107 256	-96 426	-452 730
Total operating expenses		-581 558	-541 475	-2 565 916
Operating profit		23 741	29 671	541 190
Financial income		111	2	7 361
Financial expense		-11 682	-24 341	-63 384
Net financial income (+) / expense (-)		-11 571	-24 339	-56 023
Share of result from joint ventures		-688	0	0
Profit before tax		11 482	5 332	485 167
		-2 801
Income tax expense		8 681	-1 551	-100 741
Net profit (loss) for the period			3 781	384 426
Interim condensed consolidated statement of comprehensive income
Profit for the period		8 681	3 781	384 426
Other comprehensive income		-758	39 197	75 629
Tax on comprehensive income		-2 729	-8 413	-16 188
Total comprehensive income for the period		5 193	34 565	443 867
Attributable to equity holders of the parent		5 193	34 565	443 867
Basic and diluted Earnings per share (EPS):		0,21	0,09	9,46

Interim consolidated statement of financial position

(Amounts in NOK thousand)	Note	31.03.2022	31.03.2021	31.12.2021
Assets		Unaudited	Unaudited	Audited
Goodwill	9	65 070	67 626	70 286
Trademark	9	1 509 908	1 511 885	1 511 788
Other intangible assets	9	20 696	6 662	19 096
Deferred tax asset		9 650	7 656	22 968
Total intangible assets		1 605 324	1 593 830	1 624 140
Right of use asset	9	737 738	743 412	756 941
Fixtures and fittings, tools, office machinery and equipment	9	194 299	199 170	203 158
Total tangible assets		932 037	942 582	960 099
Investments in associated companies and joint ventures	10	0	0	30
Loans to associated companies and joint ventures	10	22 500	0	0
Total financial fixed assets		22 500	0	30
Total fixed assets		2 559 860	2 536 411	2 584 268
Inventories		722 188	531 425	646 764
Trade receivables		16 196	9 148	21 999
Other receivables		35 372	51 336	25 020
Derivatives		37 529	2 091	17 439
Totalt receivables		89 097	62 576	64 458
Cash and bank deposits		0	91 441	239 331
Total currents assets		811 285	685 442	950 553
Total assets		3 371 145	3 221 853	3 534 821

Interim consolidated statement of financial position

(Amounts in NOK thousand)	Note	31.03.2022	31.03.2021	31.12.2021
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	434 437	434 437
Other equity		833 403	785 527	828 223
Total equity		1 267 843	1 219 964	1 262 660
Deferred tax		322 554	316 777	332 280
Total provisions		322 554	316 777	332 280
Lease liabilities		500 315	511 601	517 550
Liabilities to financial institutions	6	451 633	453 467	451 628
Total long-term liabilities		951 948	965 068	969 177
Lease liabilities		248 612	249 333	249 737
Liabilities to financial institutions	6	168 331	60 170	95 000
Trade payable		127 589	100 025	159 751
Tax payable		45 992	61 262	90 335
Public duties payable		96 383	102 842	172 851
Other short-term liabilities		131 874	119 034	197 865
Derivatives		10 019	27 378	5 166
Total short-term liabilities		828 801	720 043	970 705
Total liabilities		2 103 303	2 001 888	2 272 162
Total equity and liabilities		3 371 145	3 221 853	3 534 821

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	3 781	3 781
Other comprehensive income / Cash Flow Hedges	0	31 582	31 582
Dividend	0	0	0
Balance at 31 Mar 2021	434 440	785 527	1 219 968
Balance at 1 Jan 2022	434 440	828 209	1 262 660
Profit for the period YTD 2022	0	8 681	8 681
Other comprehensive income / Cash Flow Hedges	0	-3 487	-3 487
Dividend	0	0	0
Balance at 31 Mar 2022	434 440	833 403	1 267 843

Interim consolidated statement of cash flows

(Amounts in NOK thousand)	Note	Q1 2022	Q1 2021	FY 2021
		Unaudited	Unaudited	Audited
Cash Flow from operation
Profit before income taxes		11 482	5 332	485 166
Taxes paid in the period		-46 609	-33 128	-105 964
Depreciation & Impairment	9	86 667	83 047	336 376
Effect of exchange fluctuations		-130	12 383	16 861
Change in net working capital
Change in inventory		-84 192	-64 340	-180 317
Change in trade debtors		5 297	8 600	-4 448
Change in trade creditors		-28 761	10 461	71 228
Change in other provisions ¹		-135 373	-128 188	54 798
Net cash flow from operations		-191 618	-105 832	673 701
Cash flow from investment
Purchase of fixed assets	9	-15 614	-13 596	-92 614
Loans to associated companies and joint ventures	10	-22 500	0	0
Net Cash flow from investments		-38 114	-13 596	-92 614
Cash flow from financing
Proceeds from long term loans		0	0	130 000
Repayment of revolving credit facility		-65 118	0	-65 000
Repayment of Term Loans		0	-8 678	-38 678
Overdraft facility		138 329	0	0
Lease payments for principal portion of lease liability		-68 380	-67 482	-264 951
Dividend payment		0	0	-365 807
Net interest		-10 378	-8 786	-39 285
Net cash flow from financing		-5 547	-84 946	-643 720
Cash and cash equivalents at the beginning of the period		239 331	301 276	301 276
Net change in cash and cash equivalents		-235 278	-204 373	-62 628
Exchange gains / (losses) on cash and cash equivalents		-4 053	-5 463	683
Cash and cash equivalents at the end of the period		0	91 441	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 first 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

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.

Q1 2022

(Amounts in NOK thousand)	KID Interior	Hemtex	Total
Revenue	366 751	237 838	604 589
COGS	-141 724	-92 777	-234 501
Gross profit	225 026	145 061	370 088
Other operating revenue	50	659	710
Operating expense (OPEX)	-149 140	-111 251	-260 391
EBITDA	75 937	34 470	110 406
Operating profit	26 226	-2 487	23 739
Gross margin (%)	61,4 %	61,0 %	61,2 %
OPEX to sales margin (%)	40,7 %	46,8 %	43,1 %
EBITDA margin (%)	20,7 %	14,5 %	18,2 %
Inventory	454 481	267 707	722 188
Total assets	2 584 613	786 533	3 371 145

Interim Report Q1 2022 Kid ASA

Certain group costs have been booked in Kid Interior and in the parent company Kid ASA and are allocated to the respective segments based on common accepted methodology. Please refer below table for details.

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 benefits expense Segment allocated other operating expense	3,3 0,6	0,8 1,7	5,2 1,0	3,6 1,3	6,1 2,6	3,3 0,6	15,6 6,5
Hemtex Segment allocated employee benefits expense Segment allocated other operating expense	-3,3 -0,6	-0,8 -1,7	-5,2 -1,0	-3,6 -1,3	-6,1 -2,6	-3,3 -0,6	-15,6 -6,5

Note 6 Loans and borrowings

Financing agreements

At the balance sheet date, the Group has the following borrowing facilities

	Utilised	Available
(Amounts in NOK thousand)	31.03.2022		Facility Interest	Maturity	Repayment
Total term loan	481 700	581 700¹		5 years	Instalments ²
Of which:
Denominated in NOK	395 000		495 000 Fixed rate at 1,876% + 1.25% 3
Denominated in SEK	85 000		85 000 Fixed rate at 1,460% + 1.25% 4
Revolving credit facility	-		130 000 3 months Nibor + 1.10%	3 years	At maturity
Overdraft	138 331		247 000 1 week IBOR + 1.10%	12 months	At maturity
	620 031	958 700

¹Of which 100 can be drawn at Kid's discretion within two years and with a maximum of two tranches

² NOK 30M in annual instalments with bi-annual payments. First instalment was due in November 2021 for the full yearly payment.

3 Fixed interest rate is secured through an interest rate swap of MNOK 395 maturing May 2029 and subject to hedge accounting 4 Fixed 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

	Q1 2022	Q1 2021	FY 2021
Weighted number of ordinary shares	40 645 162	40 645 162	40 645 162
Net profit or loss for the year	8 681	3 781	384 426
Earnings per share (basic and diluted) (Expressed in NOK per share)	0,21	0,09	9,46

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 first quarter of 2022 and 2021:

Related Party	Q1 2022	Q1 2021
Prognosgatan Holding AS (Loan)	22 500	0
Total	22 500	0

Note 9 Fixed assets and intangible assets

	Right of use
(amounts in NOK thousand)	Asset	PPE		Trademark Other Intangibles	Goodwill
Balance 01.01.2022	756 941	203 158	1 511 788	19 096	70 286
Exchange differences	-8 747	-2 836	-1 880	-82	-5 216
Additions, disposals and adjustments	57 464	11 968		2 438
Depreciation and amortisation	-67 920	-17 991		-756
Balance 31.03.22	737 738	194 297	1 509 908	20 696	65 070

	Right of use
(amounts in NOK thousand)	Asset	PPE		Trademark Other Intangibles	Goodwill
Balance 01.01.2021	821 683	199 513	1 515 484	5 622	72 281
Exchange differences	-16 418	-1 141	-3 599	-664	-4 655
Additions, disposals and adjustments	4 263	16 642	-	2 792	-
Depreciation and amortisation	-66 117	-15 844	-	-1 087	-
Balance 31.03.21	743 411	199 170	1 511 885	6 663	67 626

Note 10 Investments in subsidiaries and joint ventures

The group had the following subsidiaries as of 31 March 2022

Name	Place of business	Nature of business	Proportion of shares directly held by parent (%)
Kid Interiør AS	Norway	Interior goods retailer	100
Kid Logistikk AS	Norway	Logistics	100
Hemtex Logistikk 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

All subsidiary undertakings are included in the consolidation.

The group had the following joint ventures on 31 March 2022:

Name	Place of business	Nature of relationship	Measurement method	Ownership share	Carrying amount
Prognosgatan Holding AS	Norway	Joint venture	Equity method	50 %	-

The joint venture is reflected in the statement of profit and loss and the statement of financial position. The share of result from the joint venture for Q1 2022 was MNOK -0,7. Per the reporting date, the carrying amount is MNOK 0 and MNOK -0,7 has been classified as other short term liabilities related to the investment.

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.