Kid ASA — Interim / Quarterly Report 2017

Feb 13, 2018

Interim report Q4 2017 Kid ASA

Dear Shareholders

The fourth quarter is the most important period of the year for Kid due to the Christmas season, representing 37% of annual revenues and 68% of adjusted net profit. We strive every year to improve our overall retail offering in order to continue to grow and remain a step ahead of our competitors. However, sometimes retail can be a bumpy road with unforeseen obstacles that demand a quick change in direction. Sales in the fourth quarter started slowly in October and early November as a result of a general decline in customer traffic to Norwegian shopping centres. Norwegian consumers then kick-started their Christmas shopping by setting a new one-day revenue record on Black Friday. This resulted in all-time-high Christmas revenues for Kid in December. Despite the high volatility in customer traffic, we still managed to apply flexibility to the in-store staffing and hence maintained operating expenditures at a reasonable level.

Our main strategic priorities remain the same: Continue growth-enhancing initiatives.

Key takeaways from the fourth quarter:

• We have signed two new lease agreements during the quarter that will complement our existing stores in the Rogaland region. We will open a new store at Tvedt Senteret (Stavanger) in early Q2, and a new store at Jærhagen Senter (Klepp) in Q4.
• Our customer club, started in 2015, consisted of over 900,000 individual members by year-end 2017. The club offers an increasingly important channel for digital communication with our customers, driving traffic to both stores and the online site. The EU General Data Protection Regulation (GDPR) will be enforced as Norwegian law in late May 2018 and requires us to gather acceptance of new terms and conditions from all existing members of the customer club. We started our preparations in early 2017 and were proactively collecting acceptances in our stores during the fourth quarter. This has given us a head start in being GDPR compliant before the May deadline.

• As communicated in the Q3 report, we increased safety-stock on our base assortment throughout Q3 and Q4 in order avoid out-of-stock situations during our peak season. This initiative had a positive impact on sales. However, we did not foresee low customer traffic in October and early November. Due to this, we see a larger inventory build-up than expected. Some of this inventory build-up was planned in order to strengthen on-shelf availability in Q1/18, and some is for the base assortment that will be sold throughout 2018. We see a low risk of the goods becoming out-offashion as the build-up consists of base assortment which typically has a life cycle of 3-5 years.

• One of our key initiatives within corporate social responsibility has been to offer our customers a textile recycling scheme. Our stores act as reception centres for unwanted interior fabrics which are later handed over to UFF Norway for reuse and recycling. This initiative has been growing in popularity, and the volume of textiles collected increased by 300% from 2016 to 2017.

• For several years, Kid have been one of the main sponsors of the Pink Ribbon campaign in Norway. Our contribution is made by selling ribbons and a variety of unique products. This year, we raised MNOK 2.3 for the campaign, which will raise awareness and funding for breast cancer.

2017 marked the company's 80th anniversary. Our long history and eight decades of experience is of great value as we continue to grow our business in line with our strategic priorities. Kid is well prepared for the future in both physical and digital retail, and we look forward to yet another exciting year in 2018!

Yours sincerely,

Kjersti Hobøl CEO

Fourth quarter in brief

(Figures from the corresponding period - previous year in brackets)

• Revenues of MNOK 505.5 (MNOK 483.8) in Q4 2017, an increase of 4.5% (11.7%). For the full year, revenues amounted to MNOK 1381.7 (MNOK 1293.9), up 6.8% (8.9%) from 2016. The number of ordinary shopping days in the fourth quarter was 76 (78), and for the full year 303 (306).
• Like-for-like sales decreased by -0.2% (+8.9%) in the quarter and increased by 3.1% (5.9%) for the full year.
• Gross margin was 59.7% (59.7%) in Q4 and 60.4% (60.2%) for the full year.
• Positive impact of early Easter, especially when comparing with last year's low traffic number due to the winter Olympics EBITDA was MNOK 125.2 (MNOK 118.3) in Q4. For the full year, EBITDA was MNOK 214.5 (MNOK 201.1). There were no EBITDA adjustments in the period from Q1 2016 to Q4 2017.
• [Two] net new store openings, [X] store refurbishments and [x] store relocations Adjusted EPS increased to NOK 3.12 (2.94) for the last twelve months. The board of directors will propose a half-year dividend of NOK 1,30 per share to the general annual meeting to be held on May 8th 2018.
• EBITDA of NOK 11.2 million (NOK 8.9 million), up 26.3% [Accounting effects] The index for sale of home textiles in Q4 2017 in specialised stores in Norway increased by 13.1% compared to 4.5% for Kid, according to Statistics Norway. For the full year, the corresponding figure was 9.7% compared to 6.8% for Kid. The latest accurate market statistic based on tax returns data show a market growth of 1.8% for the twelve months ending 31.08.2017. For the same period, Kid increased revenues by 8.2%.
• New stores opened in Ski Storsenter (Oslo) and Leknes (Lofoten) during Q4. The store at Skedsmo Senter (Skedsmo) was relocated. The total number of physical stores at the end of the quarter was 140 (134).

Key figures

Kid ASA has early adopted hedge accounting in accordance with IFRS9 from 1.1.2015. All references to historical financial figures are based on IFRS 9 in this report. A more detailed description is provided in the Annual Report for 2016.

(Amounts in NOK million)	Q4 2017	Q4 2016	Full year 2017	Full year 2016
Revenues	505,5	483,8	1381,7	1293,9
Growth	4,5%	11,7%	6,8%	8,9%
LFL growth including online sales	-0,2%	8,9%	3,1%	5,9%
No. of shopping days in period	76	78	303	306
No. of physical stores at period end	140	134	140	134
COGS	-203,9	-195,0	-547,6	-515,3
Gross profit	301,7	288,8	834,0	778,6
Gross margin (%)	59,7%	59,7%	60,4%	60,2%
EBITDA	125,2	118,3	214,5	201,1
EBITDA margin (%)	24,8%	24,5%	15,5%	15,5%
EBIT	115,9	110,4	179,7	172,1
EBIT margin (%)	22,9%	22,8%	13,0%	13,3%
Adj. Net Income*	85,6	80,5	126,7	119,4
#shares at period end	40,6	40,6	40,6	40,6
Adj. Earnings per share	2,10	1,98	3,12	2,94
Net interest bearing debt	299,4	234,7	299,4	234,7

*Adjusted for change in deferred tax caused by lower tax rate in 2016 and 2017.

2016 2017

Financial review

The figures reported in the Q4 report have 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 the corresponding period the previous year are in brackets, unless otherwise specified.

Profit and loss

Revenues in the fourth quarter of 2017 amounted to MNOK 505.5 (MNOK 483.8), an increase of 4.5% (11.7%). For the fiscal year of 2017, sales increased by 6.8% (8.9%). The number of ordinary shopping days in the fourth quarter was 76 (78), and for the full year the number of ordinary shopping days was 303 (306).

Online sales increased by 33.8% (64.5%) in the fourth quarter of 2017. Last twelve months online revenues were MNOK 43.4 (MNOK 32.0) as of December 31. 2017 - a growth of 35.4% from the corresponding period last year.

During the fourth quarter of 2017, new stores opened in Ski Storsenter (Oslo) and Leknes (Lofoten). The store at Skedsmo Senter (Skedsmo) was relocated. The total number of physical stores at the end of the quarter was 140 (134).

Gross margin (hedge accounting):

Gross margin was 59.7% (59.7%) for the quarter, and 60.4% (60.2%) for the fiscal year. Kid ASA has applied IFRS9 and hedge accounting retrospectively, with initial application from 1 January 2015. All references to historical financial figures are based on IFRS 9 in this report.

Operating expenses, including employee benefit expenses, were MNOK 176.5 (MNOK 170.5) in the fourth quarter, up 3.5% from Q4 2016. For the fiscal year of 2017, operating expenses including employee benefit expenses amounted to MNOK 620.2 (MNOK 579.2), up 7.1% from 2016. There were no adjustments for extraordinary operating expenses in 2016 or 2017.

The increase in operating expenses is in line with our expectations and is driven by general inflation and growth initiatives related to new stores, relocation of stores and expansion of the warehouse capacity. Our financial goal of maintaining last year's ratio between operating expenses and sales was achieved. This ratio show OPEX to sales for the full year of 44.9% in 2017 compared to 44.8% in 2016.

Employee expenses increased by 1.0% to MNOK 89.4 (MNOK 88.5) in the fourth quarter:

• 3.6 percentage points due to net new stores
• -6.8 percentage points due to a decrease of provision for store and HQ bonuses. Store bonuses were expected to normalize during the fourth quarter. In addition, negative revenue like-for-like growth further decreased bonus provisions in the quarter.
• 4.2 percentage points due to general salary inflation and increased staffing level.

Interim report Q4 2017 Kid ASA

Other operating expenses have increased by 6.2% in the quarter to MNOK 87.1 (MNOK 82.0):

• 2.9 percentage points related to retail space rental costs for net new stores opened in 2016 and 2017
• 1.2 percentage points related to other store rental costs driven by inflation and relocation of stores. The negative like-for-like revenue growth in the quarter reduced leasing cost for the stores where the lease is dependent on revenue.
• 1.2 percentage points related to warehouse rental cost driven by inflation and the extension of the rental agreement effective from January 2 nd 2017
• 0.9 percentage points related to other OPEX

EBITDA amounted to MNOK 125.2 (MNOK 118.3) in the fourth quarter. This represents an EBITDA margin of 24.8% (24.5%).

EBITDA for the fiscal year of 2017 came to MNOK 214.5 (MNOK 201.1), an increase of 6.7% driven by revenue growth and gross margin improvement. EBITDA

EBIT amounted to MNOK 115.9 (MNOK 110.4) in the fourth quarter. This represents an EBIT margin of 22.9% (22.8%). EBIT was affected by increased depreciation due to last year's CAPEX levels.

EBIT for the full year came to MNOK 179.7 (MNOK 172.1), corresponding to an EBIT margin of 13.0% (13.3%).

Interim report Q4 2017 Kid ASA

Net financial expenses amounted to MNOK 3.1 (MNOK 3.1) in the fourth quarter, and MNOK 12.7 (MNOK 12.7) for the fiscal year of 2017.

During the fourth quarter Kid paid an instalment of MNOK 50 on its flexible credit facility.

Adjusted Net income amounted to MNOK 85.6 (MNOK 80.5) in the quarter and MNOK 126.7 (MNOK 119.4) for the fiscal year. Net income is adjusted for a change in deferred tax related to trademark of MNOK -14.6 caused by the reduced tax rate from 24% to 23% with effect from 1.1.2018. The same adjustment was made in the fourth quarter of 2016 caused by the reduced tax rate from 25% to 24% with effect from 1.1.2017.

Events after the end of the reporting period

The Board of Directors proposes a dividend of NOK 1.30 per share for 2017. Kid paid NOK 1.00 in dividend during November 2017, and aggregated the dividend of NOK 2.30 represents 73.8% of preliminary adjusted net income for 2017. The board of directors will also propose to the annual meeting that the board is given the authority to distribute an additional half-year dividend in November 2018 in accordance with the dividend policy and in light of the third quarter 2018 results.

The board of directors have made a resolution to implement IFRS16 using the modified retrospective approach with effect from 1.1.2019.

According to the hedging strategy, Kid ASA hedge 100% of the USDNOK goods purchases approximately 6 months ahead by entering into foreign exchange contracts. Hedges for the period January to August 2018 have a weighted exchange rate of 7.91 compared to 8.34 for the same period last year.

Lier, 13th February 2018

Interim Report Q4 2017 Kid ASA

Kid ASA Q4 2017

Financial statements

Interim condensed consolidated statement of profit and loss

(Amounts in NOK thousand) Note	Q4 2017	Q4 2016	Full year 2017	Full year 2016
	Unaudited	Unaudited	Unaudited	Audited
Revenue	505 549	483 835	1 381 675	1 293 932
Other operating revenue	32	32	667	1 604
Total revenue	505 582	483 868	1 382 342	1 295 536
Cost of goods sold	203 870	195 007	547 627	515 299
Employee benefits expence	89 438	88 525	306 471	289 547
Depreciation and amortisation expenses 9	9 330	7 950	34 839	28 953
Other operating expenses	87 064	81 992	313 716	289 627
Total operating expenses	389 702	373 473	1 202 653	1 123 426
Operating profit	115 880	110 394	179 689	172 110
Other financial income	213	478	821	1 008
Other financial expense	3 264	3 547	13 480	13 678
Net financial income (+) / expense (-)	-3 051	-3 070	-12 659	-12 670
Profit before tax	112 829	107 325	167 030	159 440
Income tax expense	12 676	12 276	25 705	25 413
Net profit (loss) for the period	100 153	95 048	141 325	134 027
Interim condensed consolidated statement of comprehensive income
Profit for the period	100 153	95 048	141 325	134 027
Other comprehensive income (cashflow hedge)	6 820	14 574	-9 420	-212
Tax on comprehensive income	1 614	3 560	-2 284	-137
Total comprehensive income for the period	105 359	106 063	134 189	133 952
Attributable to equity holders of the parent	105 359	106 063	134 189	133 952
Basic and diluted Earnings per share (EPS):	2,46	2,34	3,48	3,30

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

Interim condensed consolidated statement of financial position

(Amounts in NOK thousand)	Note	31.12.2017	31.12.2016
Assets		Unaudited	Audited
Trademark	9	1 462 354	1 463 023
Store lease rights		8 423	0
Total intangible assets		1 470 777	1 463 023
Fixtures and fittings, tools, office machinery and equipment	9	91 896	88 496
Total tangible assets		91 896	88 496
Total fixed assets		1 562 672	1 551 519
Inventories		301 997	222 190
Trade receivables		3 500	2 527
Other receivables	6	28 506	26 431
Derivatives	6	4 180	8 372
Totalt receivables		36 185	37 330
Cash and bank deposits		130 071	291 852
Total currents assets		468 252	551 372
Total assets		2 030 925	2 102 891

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

Interim condensed consolidated statement of financial position

(Amounts in NOK thousand)	Note	31.12.2017	31.12.2016
Equity and liabilities		Unaudited	Audited
Share capital		48 774	48 774
Share premium		321 049	321 049
Other paid-in-equity		64 617	64 617
Total paid-in-equity		434 440	434 440
Other equity		584 077	567 852
Total equity		1 018 516	1 002 292
Deferred tax		334 585	350 293
Total provisions		334 585	350 293
Liabilities to financial institutions		429 433	526 544
Total long-term liabilities		429 433	526 544
Liabilities to financial institutions		0	0
Trade payables		45 161	40 626
Tax payable		40 415	40 849
Derivative financial instruments	6	0	0
Public duties payable		104 674	80 729
Other short-term liabilities		58 139	61 558
Total short-term liabilities		248 390	223 762
Total liabilities		1 012 408	1 100 600
Total equity and liabilities		2 030 924	2 102 891

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

Interim condensed consolidated statement of changes in equity

(Amounts in NOK thousand)	Total paid- in equity	Other equity	Total equity
	Unaudited	Unaudited	Unaudited
Balance at 1 Jan 2016	434 440	503 972	938 412
Profit for the year	0	134 027	134 027
Other comprehensive income	0	-75	-75
Cash flow hedges	0	-9 104	-9 104
Dividend	0	-60 968	-60 968
Balance as at 31 December 2016	434 440	567 852	1 002 292
Balance at 1 Jan 2017	434 440	567 852	1 002 292
Profit for the year	0	141 325	141 325
Other comprehensive income	0	-7 136	-7 136
Cash flow hedges	0	3 971	3 971
Dividend	0	-121 935	-121 935

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

Interim condensed consolidated statement of cash flows

(Amounts in NOK thousand)	Note	Q4 2017	Q4 2016	Full year 2017	Full year 2016
		Unaudited	Unaudited	Unaudited	Audited
Cash flow from operations
Profit before income taxes		112 829	107 325	167 030	159 440
Taxes paid in the period		-20 720	1 374	-40 849	-21 739
Gain/loss from sale of fixed assets		0	0	0	0
Depreciation & impairment	9	9 330	7 950	34 839	28 953
Change in financial derivatives		0	0	0	0
Differences in expensed pensions and payments in/out of
the pension scheme		0	0	0	0
Effect of exchange fluctuations		0	0	0	0
Items classified as investments or financing		3 524	3 070	13 736	12 670
Change in net working capital
Change in inventory		44 840	77 138	-79 807	-17 875
Change in trade debtors		-20	-692	-972	469
Change in trade creditors		5 356	1 178	4 536	3 990
Change in other provisions*		36 463	46 786	19 633	6 091
Net cash flow from operations		191 601	244 128	118 146	171 999
Cash flow from investments
Net proceeds from investment activities		0	0	0	0
Purchase of store lease rights		0	0	-9 500	0
Purchase of fixed assets	9	-7 999	-8 412	-37 573	-34 803
Net cash flow from investments		-7 999	-8 412	-47 073	-34 803
Cash flow from financing
Repayment of long term loans		-377	1 220	-97 111	783
Repayment of short term loans		-50 000	0	-100 000	0
Net interest Net change in bank overdraft		-3 490 0	-2 819 0	-14 517 100 000	-12 705 0
Dividend payment		-40 645	0	-121 935	-60 968
Net proceeds from shares issued		0	0	0	0
Net cash flow from financing		-94 513	-1 599	-233 564	-72 889
Cash and cash equivalents at the beginning of the period		40 537	57 717	291 852	230 373
Net change in cash and cash equivalents		89 089	234 117	-162 491	64 307
Exchange gains / (losses) on cash and cash equivalents		445	17	710	-2 829
Cash and cash equivalents at the end of the period		130 071	291 852	130 071	291 852

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

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

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 colomns.

Note 2 Basis of preparations

These condensed interim financial statements for the three and twelve months ended 31 December 2017 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 2016, which have been prepared in acccordance 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 2016.

Amendments to IFRSs effective for the financial year ending 31 December 2017 are not expected to have a material impact on the group.

The group will adopt IFRS 15 as of 1 January 2018 using the full retrospective approach. The implementation of IFRS 15 will not have a material effect on total reported revenues, expenses, assets or liabilities.

The group will adopt IFRS 16 as of 1 January 2019 and will use the modified retrospective approach. The group is currently assessing implementation effects and IFRS 16 will have a material effect on reported expenses, assets and liabilities which will be quantified and described in more detail in the annual report for 2017.

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 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 2016.

Note 5 Segment information

The Group sells home textiles in 140 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 2016. 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 2017 and 31 December 2016.

(Amounts in NOK thousand)	31 December 2017		31 December 2016
Financial assets	Carrying amount	Fair value	Carrying amount	Fair value
Loans and receivables
Trade and other receivables excluding pre-payments	3 513	3 513	4 827	4 827
Cash and cash equivalents	130 071	130 071	291 852	291 852
Total	133 584	133 584	296 679	296 679

Financial liabilities
Borrowings (excluding finance lease liabilities)	425 000	425 000	525 000	525 000
Finance lease liabilities	4 433	4 433	1 544	1 544
Trade and other payables excluding non-financial liabilities	147 832	147 832	121 355	121 355
Total	577 265	577 265	647 899	647 899
Financial instruments measured at fair value through profit and loss
Derivatives - asset
Foreign exchange forward contracts	4 180	4 180	8 372	8 372
Total	4 180	4 180	8 372	8 372
Derivatives – liabilities
Foreign exchange forward contracts		0		0
Total	0	0	0	0

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 2017	Q4 2016	Full year 2017	Full Year 2016
Weighted number of ordinary shares Net profit or loss for the year	40 645 162 100 153	40 645 162 95 048	40 645 162 141 325	40 645 162 134 027
Earnings per share (basic and diluted) (Expressed in NOK per share)	2,46	2,34	3,48	3,30

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 2017 and 2016:

Lease agreements:	2017	2016
Gilhus Invest AS (Headquarter rental)*	16 674	12 939
Vågsgaten Handel AS with subsidiaries (Store rental)	1 272	1 222
Mortensrud Næring AS	900	572
Bekkestua Eiendomsutvikling AS	1 552	545
Total	20 398	15 277

* The increase in Headquarter rental cost is driven by inflation and the extension of the warehouse effective from January 2nd 2017. Gilhus Invest AS was sold to a non-related party in December 2017.

Note 9 Fixed assets and intangible assets

(amounts in NOK million)	PPE	Trademark	Store lease rights
Balance 01.01.2017	88,5	1463,0	0,0
Additions	36,9	0,7	9,5
Disposals and write downs
Depreciation and amortisation	-33,4	-1,5	-1,1
Balance 31.12.2017	91,9	1462,4	8,4

(amounts in NOK million)	PPE	Trademark	Store lease rights
Balance 01.01.2016	86,1	1459,6	0
Additions	30,7	4,1	0
Disposals and write downs	0,0	0,0	0
Depreciation and amortisation	-28,3	-0,7	0
Balance 31.12.2016	88,5	1463,0	0

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, as well as online sales, are included in the definition.
• Gross profit is revenue less cost of goods sold (COGS)
• EBITDA (earnings before interest, tax, depreciation and amortisation) is operating profit excluding depreciation and amortization
• EBIT (earnings before interest, tax) is operating profit
• 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 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.