Kid ASA — Earnings Release 2019

Aug 29, 2019

KID ASA - Second QUARTER 2019 RESULTS

KID ASA - Second QUARTER 2019 RESULTS

Lier, 29 August 2019: The board of directors of Kid ASA has approved the

financial report for the second quarter of 2019.

Q2 HIGHLIGHTS (Figures from corresponding period the previous year in brackets)

· On 14 May 2019, Kid ASA entered into an agreement to acquire Hemtex AB from

ICA Gruppen AB. The agreed share purchase price was MSEK 37.6, based on an

Enterprise Value of MSEK 226. In connection with the transaction, Kid ASA

secured a financing structure with Nordea for the new group.

· Following the acquisition of Hemtex AB, the Kid Group introduces a new

segment structure with two operating segments. The Kid Interior segment ("Kid

Interior") relates to the operations in Norway and the Hemtex segment ("Hemtex")

relates to the operations in Sweden, Finland and Estonia.

· Revenues of MNOK 428.8 (MNOK 281.5) in Q2 2019, an increase of 52.3% (1.1%)

compared to Q2 2018. For the first two quarters of 2019, revenues amounted to

MNOK 726.8 (MNOK 556.4), up 30.6% (4.5%) from Q2 2018. Hemtex AB figures are

included in the group accounts from 15 May 2019 and contributed MNOK 107.4 to

the increase in revenue for the quarter.

· Gross margin was 62.6% (61.5%) in Q2 and 61.8% (60.0%) for the first two

quarters. The inclusion of Hemtex AB from 15 May 2019 had an accretive effect on

the gross margin for the quarter.

· Adjusted EBITDA in Q2 was MNOK 85.8 and MNOK 34.7 (MNOK 20.1) exclusive of

IFRS 16 effects. For the first two quarters, adjusted EBITDA was MNOK 137.8 and

MNOK 49.8 (MNOK 30.0) exclusive of IFRS 16 effects. Hemtex AB contributed MNOK

3.1 exclusive of IFRS 16 effects for the period 15 May until the end of the

quarter.Adjusted EPS increased to NOK 3.96 (NOK 3.09) for the last twelve

months.

· For Kid Interior, revenues were MNOK 321.4 (MNOK 281.5) in the second

quarter, representing a revenue growth of 14.2% and like-for-like growth of

11.0%. Gross margin was 62.4% (61.5%) and exclusive of IFRS 16 effects EBITDA

was MNOK 32.5 (MNOK 20.1).

· For Hemtex, revenues were MNOK 107.4 for the period 15 May 2019 until the

end of the second quarter, representing a revenue growth of -1.8%* and like-for

-like* growth of 3.2%. Gross margin was 64.2% and EBITDA exclusive of IFRS 16

effects was MNOK 3.1.

* Calculated in constant currency.

ENQUIRIES

Henrik Frisell, CFO Kid, +47 480 48 800