Kid ASA

Quarterly Report • Feb 11, 2016

Interim report Q4 2015

Interim report Q4 2015 Kid ASA

Dear Shareholders

As we now have turned the page to a new year, I would like to take this opportunity to share some highlights from the past 12 months. 2015 was a rejuvenating and challenging year for Kid Interiør, in which we have continued to build a solid platform for further development and growth, as well as demonstrated our ability to adapt to changing market conditions. Key take-aways from 2015 are:

• Increased market share – Based on recent statistics from Statistics Norway, Kid gained market share both in Q4 and in 2015, continuing recent years' trend. Kid outperformed the market growth in the fourth quarter with 5.1 percentage points, and 5.4 percentage points for the full year 2015.
• Currency changes Kid sources 90% of its goods in US dollars. When entering into 2015, the USDNOK exchange rate was at an unfavourable level compared to recent years. In order to secure gross margins we decided to increase prices, and to start a transformation of parts of the assortment to maintain our strategic price points. The job is not completed, but we are proud to deliver a gross margin of 60%, in line with the past 10 years.
• Building for the future in June we moved the administration and warehouse functions to a new central warehouse in Lier. The moving process was completed in 14 days while maintaining full distribution. The new facilities have given us increased warehouse capacity for further growth, while also enabling better collaboration and innovative processes for our employees in marketing, store operations and assortment.
• Weather impact – Our summer campaign suffered from lack of warm and dry weather in Q2, and when the warm summer weather finally came in August, timing of our back-to-school campaign impacted sales negatively in Q3.
• Going public – The preparations for listing on the Oslo Stock Exchange started in May and was completed on November 2nd. While being an interesting and educating process, it also demanded management resources. Going forward we will focus all our energy on developing Kid Interiør further.
• It's Christmas every year – In this report you will find the financials for the fourth Quarter. Christmas has proved to be more weather independent, and despite lack of snow in large parts of Norway this Christmas, we still delivered all-time-high revenues.

We believe that we are well positioned to continue our growth in the Norwegian market. We have strengthened the position as market leader and maintained our strong "value for money" proposition. The management team is committed to our business plan and has full focus on core business in the year to come. To keep you up to date on our development, we have decided to start reporting quarterly sales within a week after the quarter ends. These reporting dates are available in our financial calendar.

Yours sincerely,

Kjersti Hobøl CEO

Fourth quarter in brief

(Figures from corresponding period the previous year in brackets)

• Revenues of NOK 433.1 million (NOK 399.2 million), growing by +8.5% in the quarter, driven by successful Christmas campaigns. In the same period, the sale of home textiles in specialised stores in Norway increased by +3.3%, according to Statistics Norway.
• For the fiscal year 2015, revenues amounted to NOK 1188.4 million (NOK 1135.9 million), increasing by 4.6% compared to 2014.
• Positive impact of early Easter, especially when comparing with last year's low traffic Like-for-like (LFL) sales growth of 3.2% in the quarter and –1.1% in 2015.
• number due to the winter Olympics [Two] net new store openings, [X] store refurbishments and [x] store relocations Gross margin after realised currency effects of 60.3% (62.9%) in Q4. The decrease in gross margins was mainly due to a larger share of products sold on campaigns with discounts. Strategic price points were unchanged from 2014 to ensure customer traffic. For the fiscal year of 2015, gross margin was 60.0% (62.2%).
• EBITDA of NOK 11.2 million (NOK 8.9 million), up 26.3% Adjusted EBITDA of NOK 99.6 million (NOK 95.2 million) in Q4 and NOK 169,3 mill. (NOK 186,7 mill.) in 2015.
• [Accounting effects] New stores were opened in Stavanger (Klubbgata) and Sarpsborg (Storbyen). The stores at Rygge and Stathelle were relocated, and the store outside Bodø was relocated into City Nord shopping centre. The store at Vestkanten in Bergen was expanded.

The Board of Directors proposes a dividend of NOK 1.50 per share for 2015

Revenues, NOK million Like-for-like growth

2014 2015

Key figures

			Q1-Q4	Q1-Q4
(Amounts in NOK million)	Q4 2015	Q4 2014	2015	2014
Revenues	433,1	399,3	1188,4	1135,9
Growth	8,5%	13,6%	4,6%	10,1%
LFL growth	3,2%	6,1%	-1,1%	6,0%
No. of shopping days in period	77	77	304	303
No. of physical stores at period end	130	126	130	126
COGS including realized FX-effects	-171,8	-148,1	-475,9	-429,8
Gross profit	261,3	251,2	712,6	706,1
Gross margin (%)	60,3%	62,9%	60,0%	62,2%
Adj. EBITDA*	99,6	95,2	169,3	186,7
EBITDA margin (%)	23,0%	23,8%	14,2%	16,4%
Adj. EBIT*	92,2	89,3	144,9	166,8
EBIT margin (%)	21,3%	22,4%	12,2%	14,7%
Adj. Net Income*	64,7	60,7	92,8	103,0
#shares at period end	40,6	35,0	40,6	35,0
Adj. Earnings per share	1,59	1,73	2,28	2,94

*Adjusted for non-recurring items, financial costs related to interest SWAP, "other unrealized (losses)/gains" and change in deferred tax caused by the lower tax rate.

1,7% 7,8% 19,0% 22,4% 1,5% 2,7% 14,9% 21,3% Q1 Q2 Q3 Q4 2014 2015

Adjusted EBIT margin Number of physical stores (period end)

Operational review

The fourth quarter is the most important with regards to revenue and profit for Kid Interiør. Kid's revenues increased by 8.5% in the fourth quarter of 2015 compared to the fourth quarter of 2014 (13.6%). In the same period, the sale of home textiles in specialised stores in Norway increased by 3.3%, according to Statistics Norway. Kid's increase was primarily driven by the Christmas campaigns. Four new stores have been opened since the end of Q4 2014.

As communicated in the report for the third quarter of 2015, revenue growth in October was strong. The campaign plan was re-arranged from previous years in order to increase the marketing effect in the peak season of December. This had a limited impact on revenue in November, but resulted in a strong boost in sales during December as intended. The gross margin in the quarter was down -2.6 percentage points from the same quarter in 2014. Kid achieved the targeted gross margin on products sold at full price. Counteracting this was a change in the product mix, with a somewhat higher share of discounted goods sold.

Our main focus this quarter has been to continue growth-enhancing strategic and operational initiatives. Key initiatives and milestones have been:

• Execution of new successful campaign plan, with changed timing and content of campaigns compared to previous years.
• Distributing high volumes of goods to stores and online customers from the central warehouse in the peak season.
• Strong focus on optimizing personnel expenses in the peak season. Like-for-like personnel expenses in our stores increased by only 1.8% in the quarter, despite general salary increase and like-for-like sales.
• Continued focus on our customer loyalty program aimed at increasing store traffic, shopping frequency and basket size. The program was launched in June 2015. By the end of the fourth quarter the loyalty program had 260,000 members.
• Listing Kid ASA on Oslo Stock exchange on November 2nd

Financial review

The figures reported in the Q4 report has not been subject to a review by the Group's auditor PwC, and the preparation has required management to make accounting judgements and estimates that impact the figures. Figures from corresponding period the previous year are in brackets, unless otherwise specified.

Profit and loss

Revenue in the fourth quarter of 2015 amounted to NOK 433.1 million (NOK 399.3 million), which represents an increase of 8.5% compared to the fourth quarter of 2014 (13.6%). The campaign plan was re-arranged from previous years in order to increase the marketing effect in the peak season of December. This had a limited impact on revenue in November, but resulted in a strong boost in sales during December as intended. The LFL growth in the quarter was 3.2%, while LFL growth for the fiscal year of 2015 was -1.1%.

Online sales grew 53.6% in the fourth quarter of 2015 compared to the fourth quarter of 2014. Last twelve months online revenues were NOK 20.4 million as of December 31, 2015 - a growth of 54.6% from the corresponding period last year.

For the fiscal year of 2015, revenues amounted to NOK 1188.4 million (NOK 1135.9 million), growing by 4.6% compared to 2014. The key drivers for the growth were positive like-for-like growth in the first and fourth quarter, and new store openings.

During the fourth quarter of 2015, new stores was opened in Stavanger (Klubbgata) and Sarpsborg (Storbyen). The stores at Rygge and Stathelle were relocated, and the store outside Bodø was relocated into City Nord shopping centre. The store at Vestkanten in Bergen was expanded.

Gross margin after realised currency effects was 60.3% (62.9%) for the quarter, and 60.0% (62.2%) for the full year 2015. The gross margin has been affected by the strengthening of the USDNOK exchange rate from 2014 to 2015, as approximately 90% of goods purchases are denominated in USD.

To compensate for a weaker NOK, Kid has increased prices to customers accordingly, and hence achieved the targeted gross margin on products sold at full price. Counteracting this was a change in the product mix, with a somewhat higher share of discounted goods sold with a lower margin. Selected strategic price points on campaign products were unchanged from the previous year, and ensured customer traffic to stores, thus reducing the gross margin on these high-volume goods.

Gross margin:

Other operating expenses, including employee benefit expenses, were NOK 161.8 million (NOK 156.1 million) in the fourth quarter. Other operating expenses include a non-recurring adjustment of NOK 2.1 million related to the Initial Public Offering ("IPO"). The costs related to the IPO was NOK 11.4 million in 2015 , above the estimated NOK 9 million as communicated in the Prospectus. NOK 5.6 million of the IPO cost is recognized as a reduction of share

premium, and NOK 5.8 million is recognized as an one-off operating expense.

Employee expenses amounted to NOK 84.8 million (NOK 81.3 million) in the fourth quarter, an increase of 4.3%. The previous management incentive program was terminated per 31.12.2015 and accounted for NOK 2.3 million of the employee expenses increase in the fourth quarter compared to the same quarter in 2014. A new management incentive model has taken effect from 1.1.2016, which will reduce personel costs in 2016. The remainder of the employee expenses increase was due to 6 new stores (time weighted) compared to the same period previous year, as well as general salary increases.

Other operating expenses have increased in the period due to net new store openings and inflation, amounting to NOK 77.0 million (NOK 74.8 million) in the fourth quarter.

For the fiscal year of 2015, other operating expenses, including employee benefits, amounted to NOK 544.6 million (NOK 519.6 million). Adjustments for all four quarters amounted to NOK 9.5 million (NOK 0.0 million), and were related to the IPO process and the relocation of the warehouse and headquarters to new premises in Lier in June.

Adjusted EBITDA amounted to NOK 99.6 million (NOK 95.2 million) in the fourth quarter. EBITDA is adjusted for unrealized losses/gains related to fluctuations in spot rates vs. currency derivative hedging values. For the fourth quarter, Kid had a change in unrealized gains of NOK -0.1 million (NOK -2.0 million). EBITDA was positively affected by strong sales development, but the effect was reduced due to a lower gross margin.

Adjusted EBITDA for the fiscal year of 2015 was NOK 169.3 million (NOK 186.7 million), down -9.3%. Adjustments in relation to unrealized gains/losses amounted to a gain of NOK 14.2 million (NOK -2.6 million) for the full year.

Adjusted EBIT amounted to NOK 92.2 million (NOK 89.3 million) in the fourth quarter, corresponding to an EBIT margin of 21.3% (22.4%). In addition to the effects described above, EBIT was affected by increased depreciation due to last year's CAPEX levels.

Adjusted EBIT for the fiscal year of 2015 was NOK 144.9 million (NOK 166.8 million), corresponding to an EBIT margin of 12.2% (14.7%).

Adjusted net financial expenses amounted to NOK 4.1 million (NOK 6.1 million) in the fourth quarter. Net financial expenses are adjusted for expenses and fair value adjustments related to a swap contract. The total adjustment in relation to the swap contract was NOK 0.2 million (NOK 9.2 million) in the fourth quarter. The swap contract was terminated on November 3 rd 2015. Adjusted net financial expenses were positively affected by decreased loan margins and lower long-term debt. An instalment of NOK 75 million was paid on November 10th 2015.

Adjusted net financial expenses for the fiscal year of 2015 was NOK 18.4 million (NOK 25.7 million). The total adjustment in relation to the swap contract was NOK 1.8 million (NOK 17.7 million) in the full year of 2015.

Adjusted net income amounted to NOK 64.7 million (NOK 60.7 million) in the fourth quarter and NOK 92.8 million (NOK 103.0 million) in 2015. Net income is adjusted for a change in deferred tax related to trademark of NOK-29.2 million caused by the reduced tax rate from 27% to 25% with effect from 1.1.2016.

Adjustments overview (NOK million)	Q4 2015	Q4 2014	FY 2015	FY 2014
Cost of relocation to new			3,7
warehouse
Cost related to IPO Unrealized losses/gains	2,1 0,1	2,0	5,8 -14,2	2,6
EBITDA adjustments	2,2	2,0	-4,7	2,6
SWAP	0,2	9,2	1,8	17,7
Profit adjustments before tax	2,4	11,2	-2,9	20,3
Deferred tax effect of	-29,2		-29,2
lower tax rate
Tax effect of profit adjustments	-0,6	-3,0	0,8	-5,5
Net profit (loss) adjustments	-27,5	8,1	-31,3	14,8

Events after the end of the reporting period

The Board of Directors proposes a dividend of NOK 1.50 per share for 2015, representing 65.7 per cent of preliminary adjusted net income for 2015. The dividend is within the policy of 60-70% of adjusted net income

Lier, 11th February 2016

Interim Report Q4 2015 Kid ASA

Kid ASA Q4 2015

Financial statements

Interim condensed consolidated statement of profit and loss for the three and twelve months ended 31 December 2015 and 2014

(Amounts in NOK thousand) Note Q4 2015 Q4 2014 Full Year 2015 2014 Unaudited Unaudited Unaudited Audited Revenue 433 115 399 260 1 188 433 1 135 914 Other operating income 114 113 1 294 190 Total revenue 433 229 399 373 1 189 726 1 136 104 Cost of goods sold 179 709 150 917 498 267 439 417 Employee benefits expense 84 791 81 291 271 342 260 188 Depreciation and amortisation expenses 9 7 470 5 927 24 447 19 848 Other operating expenses 79 043 74 807 282 690 259 446 Total operating expenses 351 014 312 943 1 076 745 978 900 Other realized (losses)/gains- net 6 7 895 2 820 22 405 9 601 Other unrealized (losses)/gains- net 6 -144 -1 951 14 206 -2 599 Operating profit 89 965 87 300 149 592 164 206 Other financial income 94 234 471 393 Other financial expense 5 219 8 148 26 225 32 907 Changes in fair value of financial current assets 836 -7 401 5 537 -10 825 Net financial income (+) / expense (-) -4 289 -15 315 -20 217 -43 338 Profit before tax 85 676 71 984 129 375 120 868 Income tax expense -6 516 19 475 5 297 32 705 Net profit (loss) for the period 92 192 52 509 124 078 88 163 Interim condensed consolidated statement of comprehensive income Profit for the period 92 192 52 509 124 078 88 163 Other comprehensive income 0 0 0 0 Total comprehensive income 92 192 52 509 124 078 88 163 Attributable to equity holders of the parent 92 192 52 509 124 078 88 163			Full Year
Earnings per share (EPS): 2,38 1,50 3,45 2,52

Interim condensed consolidated statement of financial position for the twelve months ended 31 December 2015 and 2014

(Amounts in NOK thousand)	Note	31.12.2015	42004
Assets		Unaudited	Audited
Trademark	9	1 459 585	1 459 585
Total intangible assets		1 459 585	1 459 585
Fixtures and fittings, tools, office machinery and equipment	9	86 081	69 890
Total tangible assets		86 081	69 890
Total fixed assets		1 545 666	1 529 475
Inventories		215 211	201 053
Trade receivables		2 996	1 844
Other receivables	6	23 322	11 169
Derivatives	6	14 206	0
Total receivables		40 524	13 013
Cash and bank deposits		230 373	99 070
Total current assets		486 108	313 136
Total assets		2 031 774	1 842 611

Interim condensed consolidated statement of financial position for the twelve months ended 31 December 2015 and 2014

(Amounts in NOK thousand)	Note	31.12.2015	31.12.2014
Equity and liabilities		Unaudited	Audited
Share capital		48 774	42 000
Share premium		321 049	156 874
Other paid-in-equity		64 617	37 718
Total paid-in-equity		434 440	236 592
Other reserves - OCI		0	0
Other equity		510 532	406 090
Total equity		944 972	642 682
Pensions liabilities		0	15
Deferred tax		371 143	389 084
Total provisions		371 143	389 099
Liabilities to financial institutions		525 761	555 496
Derivatives		0	25 892
Total long-term liabilities		525 761	581 388
Liabilities to financial institutions		0	45 000
Trade creditors		38 785	22 255
Tax payable		21 739	34 205
Public duties payable		69 634	62 186
Other short-term liabilities		59 740	65 798
Total short-term liabilities		189 898	229 443
Total liabilities		1 086 802	1 199 930
Total equity and liabilities		2 031 774	1 842 612

Interim condensed consolidated statement of changes in equity for the twelve months ended 31 December 2015 and 2014

(Amounts in NOK thousand)	Total paid- in equity	Other equity	Total equity
	Unaudited	Unaudited	Unaudited
Balance at 1 January 2014	210 879	343 642	554 520
Profit for the period YTD 2014	0	88 163	88 163
Group contribution to/from parent company	25 714	-25 714	0
Balance as at 31 December 2014	236 593	406 090	642 683
Balance at 1 January 2015	236 593	406 090	642 683
Profit for the period YTD 2015	0	124 078	124 078
Contributions of equity, net of transaction costs	170 949	0	170 949
Group contribution to/from parent company	26 898	-19 636	7 263
Balance as at 31 December 2015	434 440	510 532	944 972

Interim condensed consolidated statement of cash flows for the three and twelve months ended 31 December 2015 and 2014

(Amounts in NOK thousand)	Note	Q4 2015	Q4 2014	Q1-Q4 2015	Full year 2014
		Unaudited	Unaudited	Unaudited	Audited
Cash flow from operations
Profit before income taxes		85 676	71 984	129 375	120 868
Taxes paid in the period		-8 743	-18 873	-26 942	-28 873
Gain/loss from sale of fixed assets		0	23	0	23
Depreciation & impairment	9	7 470	5 927	24 447	19 848
Change in financial derivatives		-692	9 352	-19 743	13 424
Differences in expensed pensions and payments in/out
of the pension scheme		-9	-75	-15	-75
Effect of exchange fluctuations		142	-330	761	-352
Items classified as investments or financing		5 125	6 361	25 754	32 514
Change in working capital
Change in inventory		89 731	62 497	-23 282	-49 598
Change in trade debtors		-1 060	1 535	-1 152	183
Change in trade creditors		8 930	-7 407	25 654	6 239
Change in other provisions		45 035	39 485	-6 213	6 251
Net cash flow from operations		231 604	170 481	128 644	120 451
Cash flow from investments
Net proceeds from investment activities		0	158	0	158
Purchase of fixed assets	9	-9 316	-12 164	-40 638	-39 199
Net cash flow from investments		-9 316	-12 006	-40 638	-39 041
Cash flow from financing
Change in debt		-164 361	-94 921	-95 937	-26 179
Net interest		-8 180	-6 480	-29 456	-34 186
Net proceeds from shares issued	10	169 451	0	169 451
Net cash flow from financing		-3 090	-101 401	44 058	-60 365
Cash and cash equivalents at the beginning of the period		11 316	41 646	99 070	77 653
Net change in cash and cash equivalents		219 199	57 074	132 065	21 045
Exchange gains / (losses) on cash and cash equivalents		-142	350	-761	372
Cash and cash equivalents at the end of the period		230 373	99 070	230 373	99 070

Note 1 Corporate information

Kid ASA (former known as Nordisk Tekstil Holding ASA) and its subsidiaries` (together the "company" or the "Group") operating activities are related to the resale of home textiles on the Norwegian market.

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 condensed interim financial statements for the three and twelve months ended 31 December 2015 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The condensed interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2014, 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 condensed consolidated interim financial statements are consistent with those applied in the preparation of the annual IFRS financial statements for the year ended 31 December 2014.

Amendments to IFRSs effective for the financial year ending 31 December 2015 are not expected to have a material impact on the group. The Group has not early adopted standards, interpretations or amendments that have been issued but is not yet effective.

Note 4 Estimates, judgements 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 condensed interim financial statements the significant judgements made by management inn 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 2014.

Note 5 Segment information

The Group sells home textiles in 130 fully owned stores across Norway and through the Group's online website. Over 97% of the products are sold under own brands. The Group's aggregate online sales are approximately equal to the sales of one physical store and it is therefore not considered as a separate segment. The Norwegian market is not divided into separate geographical regions with distinctive characteristics and Kid's operations cannot naturally be split in further segments.

Note 6 Financial instruments

The group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the group's annual financial statements as at 31 December 2014. There have been no changes in any risk management policies since the year end.

Set out below is a comparison of the carrying amounts and fair values of financial assets and liabilities as at 31 December 2015 and 31 December 2014.

(Amounts in NOK thousand)	31 Dec 2015		31 Dec 2014
Financial assets	Carrying amount	Fair value	Carrying amount	Fair value
Loans and receivables
Trade and other receivables excluding pre-payments	5 075	5 075	1 844	1 844
Cash and cash equivalents	230 373	230 373	99 070	99 070
Total	235 448	235 448	100 914	100 914
Financial liabilities
Borrowings (excluding finance lease liabilities)	525 000	525 000	600 000	600 000
Finance lease liabilities	761	761	1 344	1 344
Trade and other payables excluding non-financial liabilities	41 602	41 602	28 775	28 775
Total	567 363	567 363	630 119	630 119

Financial instruments measured at fair value through profit and

loss
Derivatives - asset
Foreign exchange forward contracts	14 206	14 206	0	0
Total	14 206	14 206	0	0
Derivatives – liabilities
Interes rate swaps	0	0	25 892	25 892
Foreign exchange forward contracts	0	0	0	0
Total	0	0	25 892	25 892

Fair value hierarchy

All financial instruments for which fair value is recognized or disclosed are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as follows:

Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

There were no transfers between Levels or changes in valuation techniques during the period. All of the Group's financial instruments that are measured at fair value are classified as level 2.

Level 2 trading and hedging derivatives comprise forward foreign exchange contracts and interest rate swaps. These forward foreign exchange contracts have been fair valued using forward exchange rates that are quoted in an active market. Interest rate swaps are fair valued using forward interest rates extracted from observable yield curves. The effects of discounting are generally insignificant for Level 2 derivatives.

Note 7 Earnings per share

	Q4 2015	Q4 2014	Q1-Q4 2015	Q1-Q4 2014
Weighted number of ordinary shares	38 763 441	35 000 000	35 940 860	35 000 000
Net profit or loss for the year	92 192	52 509	124 078	88 163
Earnings per share (basic and diluted)
(Expressed in NOK per share)	2,38	1,50	3,45	2,52

Note 8 Related party transactions

The Group's related parties include it associates, key management, members of the board and majority shareholders.

None of the Board members have been granted loans or guarantees in the current year. 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 twelve months ended 31 December 2015 and 2014:

Lease agreements:	2015	2014
Vågsgaten Handel AS with subsidiaries (Store rental)	687	0
Gilhus Invest AS (Headquarter rental)	7 465	0
Total	8 152	0
Mortensrud Næring AS*	-700	0

*Prepayment of lessor contribution to lessee fit-out costs. Classified as short-term debt.

Note 9 Fixed assets and intangible assets

(amounts in NOK million)	PPE	Trademark
Balance 01.01.2015	69,9	1459,6
Additions	40,6
Disposals and write downs	0,0
Depreciation and amortisation	-24,4
Balance 31.12.2015	86,1	1459,6

(amounts in NOK million)	PPE	Trademark
Balance 01.01.2014	50,7	1459,6
Additions	39,2
Disposals and write downs	-0,2
Depreciation and amortisation	-19,8
Balance 31.12.2014	69,9	1459,6

Note 10 Share capital

	Number of shares	Share capital	Share premium		Total
Opening balance as at 1 January 2015	35 000 000	42 000	156 874		198 874
Proceeds from shares issued	5 645 162	6 774	168 226		175 000
Transaction costs (net of tax)			- 4 051	-	4 051
At 31 December 2015	40 645 162	48 774	321 049		369 823

On 30 October 2015, the Company made a capital increase of MNOK 175 in connection with the initial public offering of shares in Kid ASA and the Listing of Kid ASA's Shares on Oslo Stock Exchange at 2 November 2015.

The proceeds from the capital increase has been disposed as follows:

1. Settlement of NOK 20.4 million short term liability related to termination of the NOK 600 million swap agreement

2. Prepayment of an instalment of the existing Term Loan of NOK 45 million

3. Prepay of an instalment of NOK 30 million of the existing Term Loan

Remaining net proceeds from the capital increase have strengthen the Group's liquidity reserve.

Since year end the directors have recommended the payment of a dividend of NOK 1,5 per fully paid ordinary share. The aggregate amount of the proposed dividend out of retained earnings at 31 December 2015, but not recognised as a liability at year end, is NOK 60.967,7

Definitions

• Like for like are stores that were in operation at the start of last year's period and end of current period. Refurbished and relocated stores are included in the definition
• Gross profit is revenue less cost of goods sold (COGS) including realized losses/gains on currency hedging contracts
• EBITDA (earnings before interest, tax, depreciation and amortisation) is operating profit excluding depreciation, amortization and unrealised FX gains/losses
• Adjusted EBITDA is EBITDA adjusted for non-recurring items.
• EBIT (earnings before interest, tax) is operating profit excluding unrealised FX gains/losses
• Adjusted EBIT is EBIT adjusted for non-recurring items.
• Capital expenditure is the use of funds to acquire intangible or fixed assets
• Net Income is profit (loss) for the period
• Adjusted Net Income is Net Income adjusted for non-recurring items, financial costs related to interest SWAP, "other unrealized (losses)/gains" and change in deferred tax caused by the lower tax rate.

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 Main office: +47 940 26 000, Customer service: +47 00 20 00 www.kid.no