Kid ASA

Investor Presentation • Nov 9, 2023

Q3 2023 presentation

Financial summary

Third quarter in brief

• A strong quarter in terms of footfall and basket size, resulted in doubledigit growth and all-time high EBITDA for the Group in Q3
• Group revenues increased by 13.1% (-2.1%). In constant currency:
  • Group revenues increased by 12.1% (+0.5%)
  • LFL revenues increased by 12.9% (-0.4%)
  • Online revenues increased by 26.8% (+39.4%)
• Gross margin increased by 6.6 percentage points
• EBITDA increased by MNOK 98.6 to MNOK 241.4
  • Strong cost control
• EPS of NOK 2.23 (0.73)
• Strong cash flow
• Dividend payment of NOK 2.75 per share

Operational focus

• Impactful "Hemtex 50 Years" campaign driving substantial customer traffic and revenues
• Strong growth in established product categories as a result of product- and assortment development
• "Atelier" by Camilla Pihl was successfully launched in May and contributed with revenues of ~MNOK 10 in Q3
• Extended continue to drive profitable growth and will be expanded
  • Currently available online, in 5 pilot stores and in select larger stores in Norway
  • Revenues from the Extended assortment of MNOK 16.6 in Q3
  • Launch 3 new Extended stores in Sweden
  • Increase from 5 to 10 Extended stores in Norway
  • Extended assortment will be launched online and in selected larger stores in Hemtex during H1-24

Revenues

Group revenues Q3 increased by 13.1% (-2.1%)

• In constant currency:
  • Group revenues increase of 12.1% (+0.5%)
  • Group like-for-like revenues increase of 12.9% (-0.4%) including online sales
  • Online growth of 26.8% (+39.4%), equivalent to an online share of 11.7%. Including click-and-collect, the online share was 16.5%
• Kid Interior revenues growth of 13.1% (+1.4%)
  • Positive contribution from Extended assortment of MNOK 16.6 (MNOK 0)
  • Like-for-like growth of 12.7% (-1.0%) including online sales
  • Online sales increase of 45.5% (+37.0%)
• Hemtex revenues growth of 13.1% (-7.4%). In constant currency:
  • Revenues growth of 10.5% (-1.0%)
  • Like-for-like growth of 13.3% (+0.8%) including online sales
  • Online sales increase of 11.2% (+41.7%)

2022 2023 2022 2023 2022 2023 2022 2023

Q1 Q2 Q3 Q4

REVENUES

Gross margin

Strong gross margin development

• Group gross margin was 62.1% for the quarter, up by 6.6 pp compared to Q3-22
  • Kid Interior gross margin increased by 8.5 pp to 62.8% (54.3%)
  • Hemtex gross margin increased by 3.3 pp to 60.8% (57.5%)
• Freight rates back to pre-Covid level during 2023, and combined with price adjustments implemented during Q1, we now see a gross margin in line with historical levels
• Gross margin in Q3-22, Q4-22 and Q1-23 was unusually low as the high freight rates in 2022 were not sufficiently incorporated in our price calculation models

OPEX

OPEX-TO-SALES (excl. IFRS 16) of 43.6% (46.1%)

• Employee benefit expenses increased by MNOK 17.0
  • Increased bonus provisions and general salary increase
  • Increased Logistics due to own employees in new Swedish warehouse of MNOK 4.2
  • Tight cost control in like-for-like stores
  • MNOK 1.3 due to changes in SEKNOK exchange rate
• Other operating expenses decreased by MNOK -8.2
  • Reduced electricity costs by MNOK -2.8
  • Reduced logistics costs by MNOK -4.8 due to shift between other OPEX and employee expenses for the logistics operation in Sweden
  • MNOK 1.4 due to changes in SEKNOK exchange rate

OPEX MNOK

Personell Other Opex

EBITDA MNOK

Kid Interior Hemtex

Cash flow

MNOK

Satisfactory financial position and liquidity

• Record high cash flow from operations in third quarter, due to increased profit and a constant working capital
• Cash flow from investments reflects CAPEX in stores and online platform of MNOK 23.6, and investment in the new warehouse in Sweden of MNOK 2.2
• Cash flow from financing influenced by reduction in overdraft facility and increased interest expenses
• New RCF agreement signed with updated EBITDA covenants to include IFRS 16. No change to the definition of NIBD
• Gearing ratio, excl. IFRS 16 effects, of 1.72x (1.62x)
• Net interest-bearing debt excl. IFRS 16 leasing liabilities of MNOK 747.5 (MNOK 815.9)
• Cash and available credit facilities of MNOK 271.1 (MNOK 132.8)

NUMBER OF STORES PER QUARTER END

Store portfolio activity

Per quarter end

	Completed 2023	Signed, but not yet completed
New stores	NO: Trondheim Torg FI: Lippulaiva, Espoo	NO: Rørvik (Q4-23) NO: Oslo City (Q1-24) NO: Grünerløkka (Q2-25) NO: Fredrikstad (Q4-24) SE: Burlöv (Q4-23) EST: Nautica Tallinn (Q4-23)
Closures	NO: 1 store SE: 1 store FI: 2 stores	NO: 2 stores
Relocations	NO: 5 stores¹ SE: 7 stores	NO: 7 stores SE: 4 stores
Refurbishment/ expansion ¹of which three stores are Kid Extended	NO: 7 stores² SE: 2 store	NO: 3 stores EST: 1 store FI: 1 store

²of which one store is Kid Extended

*Fully-owned stores. Hemtex has additional 11 franchise stores

Outlook

• In Q4-23, a total of 3 stores will open in Norway, Sweden and Estonia. 1 store has opened (Rørvik), and the remaining 2 are scheduled to open at the end of November (Burlöv and Tallinn).
• Additional 8 store projects will be carried out in Q4-23, with 4 projects in Kid Interior and 4 in Hemtex. All the projects involve refurbishment and enlargement, with a mix of relocation and others remaining in their current locations.
• The launch of the Extended concept stores is considered successful. Based on this, we have decided to increase the number of Extended stores from the current 5 pilot stores to a total of 10 stores in Norway, and to open 3 new Extended stores in Sweden.
• Well prepared for the Christmas shopping season.

Semi-annual dividend

Dividend of NOK 2.75 per share

• The Board of Directors has decided to pay a half-year dividend of NOK 2.75 per share as a prepayment on the fiscal year 2023
• Following the Q4 2023 results, the Board of Directors will propose the next half-year dividend to the annual general meeting in May 2024
• The proposed pay-out details are:
  • Last day including right: 15 November 2023
  • Ex-date: 16 November 2023
  • Record date: 17 November 2023
  • Payment date: 29 November 2023
  • Date of approval: 8 November 2023 (Board Resolution according to proxy approved at the Annual General Meeting)

Segment: Kid Interior

KID Interior

(Amounts in NOK millions)	Q3 2023	Q3 2022	Q1-Q3 2023	Q1-Q3 2022	FY 2022
Revenue	517,8	457,9	1 354,4	1 280,2	1 983,6
Revenue growth	13,1 %	1,4 %	5,8 %	7,0 %	5,3 %
LFL growth including online sales	12,7 %	-1,0%	4,8 %	4,6 %	3,2 %
COGS	-192,5	-209,3	-531,0	-533,3	-828,0
Gross profit	325,3	248,6	823,4	747,0	1 155,6
Gross margin (%)	62,8 %	54,3 %	60,8 %	58,3 %	58,3 %
Other operating revenue	0,0	0,0	0,1	0,1	0,1
Employee benefits expense	-98,2	-89,2	-295,9	-277,4	-392,2
Other operating expense	-109,9	-106,6	-330,5	-307,1	-434,4
Other operating expense - IFRS 16 effect	49,7	43,0	143,0	127,4	168,7
EBITDA	166,9	95,8	340,1	289,9	497,9
EBITDA margin (%)	32,2 %	20,9 %	25,1 %	22,6 %	25,1 %
No. of shopping days No. of physical stores at period end	79 156	79 155	227 156	227 155	308 156

Segment: Hemtex

Hemtex

(Amounts in NOK millions)	Q3 2023	Q3 2022	Q1-Q3 2023	Q1-Q3 2022	FY 2022
Revenue	313,1	276,8	806,0	789,2	1 194,4
Revenue growth ¹	10,5 %	-1,0%	-1,3%	3,9 %	3,2 %
LFL growth including online sales ¹	13,3 %	0,8 %	1,0 %	2,7 %	2,8 %
COGS	-122,7	-117,6	-324,1	-320,2	-503,6
Gross profit	190,4	159,2	481,9	469,0	690,8
Gross margin (%)	60,8 %	57,5 %	59,8 %	59,4 %	57,8 %
Other operating revenue	1,0	1,5	2,5	3,9	5,1
Employee benefits expense	-63,3	-55,2	-188,8	-175,9	-237,6
Other operating expense	-90,6	-87,7	-283,0	-258,0	-361,3
Other operating expense - IFRS 16 effect	36,9	29,0	112,0	91,9	122,6
EBITDA	74,5	46,9	124,5	130,9	219,7
EBITDA margin (%)	23,7 %	16,8 %	15,4 %	16,5 %	18,3 %
No. of shopping days No. of physical stores at period end (excl.	92	92	271	271	362
franchise) ¹ Calculated in local currency	117	117	117	117	119

Income statement

(Amounts in NOK thousand)	Q3 2023	Q3 2022	Q1-Q3 2023	Q1-Q3 2022
Revenue	830,9	734,7	2 160,4	2 069,4
COGS	-315,1	-326,9	-855,2	-853,5
Gross profit	515,8	407,8	1 305,3	1 215,9
Gross margin (%)	62,1 %	55,5 %	60,4 %	58,8 %
Other operating revenue	1,0	1,5	2,6	4,0
OPEX	-275,4	-266,6	-843,2	-799,2
EBITDA	241,4	142,7	464,6	420,8
EBITDA margin (%)	29,0 %	19,4 %	21,5 %	20,3 %
Depreciation and amortisation	-101,8	-86,4	-298,4	-260,9
EBIT	139,6	56,3	166,2	159,9
EBIT margin (%)	16,8 %	7,6 %	7,7 %	7,7 %
Net finance	-20,2	-12,4	-58,7	-34,7
Share of result from joint ventures	-1,3	-2,5	-1,6	-4,4
Profit before tax	118,0	41,3	105,9	120,7
Net profit	90,6	29,5	80,4	90,2

Statement of financial position

(Amounts in NOK thousand)	Note	30.09.2023	30.09.2022	31.12.2022
Assets		Unaudited	Unaudited	Audited
Goodwill	9	67 581	67 266	65 479
Trademark	9	1 511 858	1 511 606	1 510 224
Other intangible assets	9	42 635	24 518	35 326
Deferred tax asset		0	0	1 859
Total intangible assets		1 622 075	1 603 391	1 612 888
Right of use asset	9	1 039 539	795 465	760 734
Fixtures and fittings, tools, office machinery and equipment	9	299 657	202 190	237 245
Total tangible assets		1 339 196	997 655	997 979
Investments in associated companies and joint ventures	10	0	0	0
Loans to associated companies and joint ventures	8	37 591	23 158	23 795
Total financial fixed assets		37 591	23 158	23 795
Total fixed assets		2 998 862	2 624 204	2 634 663
Inventories		728 704	876 556	668 753
Trade receivables		10 135	16 153	12 094
Other receivables		27 013	32 963	35 241
Derivatives		61 783	148 448	59 449
Totalt receivables		98 931	197 564	106 784
Cash and bank deposits		0	6 482	75 721
Total currents assets		827 635	1 080 602	851 259
Total assets		3 826 500	3 704 809	3 485 922

(Amounts in NOK thousand)	Note	30.09.2023	30.09.2022	31.12.2022
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	434 440	434 440
Other equity		812 384	860 279	838 940
Total equity		1 246 824	1 294 719	1 273 380
Deferred tax		322 902	346 100	322 723
Total provisions		322 902	346 100	322 723
Lease liabilities		767 079	553 919	523 528
Liabilities to financial institutions	6	671 658	621 642	521 646
Total long-term liabilities		1 438 737	1 175 561	1 045 175
Lease liabilities		302 320	259 201	258 257
Liabilities to financial institutions	6	75 853	200 695	30 000
Trade payable		152 038	113 496	122 459
Tax payable		0	14 314	57 745
Public duties payable		129 098	119 087	167 139
Other short-term liabilities		155 305	181 588	201 815
Derivatives		3 424	50	7 229
Total short-term liabilities		818 038	888 430	844 644
Total liabilities		2 579 676	2 410 091	2 212 542
Total equity and liabilities		3 826 500	3 704 809	3 485 922

Allocated segment costs

									Total year 2023	Total year 2022
(MNOK)	Q1 2023	Q1 2022	Q2 2023	Q2 2022	Q3 2023	Q3 2022	Q4 2023	Q4 2022
Kid ASA and Kid Interior
Segment allocated employee benefits expense	4,2	3,3	4,0	4,0	4,0	4,0		3,9	12,3	15,2
Segment allocated other operating expense	0,5	0,6	0,5	0,6	0,5	0,5		0,5	1,4	2,1
Hemtex
Segment allocated employee benefits expense	-4,2	-3,3	-4,0	-4,0	-4,0	-4,0		-3,9	-12,3	-15,2
Segment allocated other operating expense	-0,5	-0,6	-0,5	-0,6	-0,5	-0,5		-0,5	-1,4	-2,1

17 Kid ASA – Q3 presentation

Quarterly revenue growth

Group
Total growth
Year	Q1	Q2	Q3	Q4
2021	10,4 %	3,9 %	3,6 %	2,5 %
2022	9,3 %	8,8 %	0,5 %	2,1 %
2023	-1,3 %	-2,5 %	12,1 %
Like-for-like growth
Year	Q1	Q2	Q3	Q4
2021	9,3 %	2,9 %	0,1 %	0,2 %
2022	7,3 %	5,6 %	-0,4 %	1,8 %
2023	-0,3 %	-3,3 %	12,9 %

Kid Interior				Hemtex
Total growth					Total growth
Year	Q1	Q2	Q3	Q4	Year	Q1	Q2	Q3	Q4
2020	-3,6 %	28,0 %	22,1 %	15,3 %	2020	6,6 %	14,7 %	-3,7 %	-5,7 %
2021	13,6 %	1,7 %	-3,9 %	-1,0 %	2021	6,4 %	7,7 %	17,4 %	9,0 %
2022	12,5 %	8,9 %	1,4 %	2,3 %	2022	4,8 %	8,8 %	-1,0 %	1,7 %
2023	5,2 %	-1,1 %	13,1 %		2023	-10,9 %	-4,8 %	10,5 %
Like-for-like growth					Like-for-like growth
Year	Q1	Q2	Q3	Q4	Year	Q1	Q2	Q3	Q4
2020	-4,0 %	27,1 %	20,9 %	13,6 %	2020	7,9 %	18,0 %	9,2 %	-1,9 %
2021	10,3 %	-0,9 %	-7,1 %	-3,8 %	2021	7,8 %	9,8 %	14,6 %	7,8 %
2022	10,7 %	5,8 %	-1,0 %	0,9 %	2022	2,0 %	5,2 %	0,8 %	3,5 %
2023	3,5 %	-2,0 %	12,7 %		2023	-6,5 %	-5,4 %	13,3 %

	6,6 %	14,7 %	-3,7 %	-5,7 %
	6,4 %	7,7 %	17,4 %	9,0 %
	4,8 %	8,8 %	-1,0 %	1,7 %
	-10,9 %	-4,8 %	10,5 %
rth
	Q1	Q2	Q3	Q4
	7,9 %	18,0 %	9,2 %	-1,9 %
	7,8 %	9,8 %	14,6 %	7,8 %
	2,0 %	5,2 %	0,8 %	3,5 %
	-6,5 %	-5,4 %	13,3 %

Sales days and stores

Kid Interior Hemtex

Number of sales days Number of sales days

Year	Q1	Q2	Q3	Q4	Total	Year	Q1	Q2	Q3	Q4	Total
2022	76	72	79	81	308	2022	89	90	92	91	362
2023	77	71	79		227	2023	89	90	92		271

Year	Q1	Q2	Q3	Q4	Total	Year	Q1	Q2	Q3	Q4	Total
2022	76	72	79	81	308	2022	89	90	92	91	362
2023	77	71	79		227	2023	89	90	92		271

Number of store projects Number of store projects

2022	Q1	Q2	Q3	Q4	Total	2022	Q1	Q2	Q3	Q4
New stores	0	2	0	1	3	New stores	0	0	0	2
Closed stores	0	0	0	0	0	Closed stores	2	1	1	0
Relocated stores	0	1	2	3	6	Relocated stores	3	1	2	2
Refurbished stores	5	3	0	1	9	Refurbished stores	1	2	1	6
Total number of stores	153	155	155	156		Total number of stores*	130	129	128	130
2023	Q1	Q2	Q3	Q4	Total	2023	Q1	Q2	Q3	Q4
New stores	0	1	0		1	New stores	1	0	0
Closed stores	1	0	0		1	Closed stores	2	1	0
Relocated stores	2	1	0		3	Relocated stores	1	3	3
Refurbished stores	5	3	1		9	Refurbished stores	1	0	1
Total number of stores	155	156	156			Total number of stores*	129	128	128
Total number of LFL stores	152	152	152			Total number of LFL stores*	122	121	121

2022	Q1	Q2	Q3	Q4	Total	2022	Q1	Q2	Q3	Q4	Total
New stores	0	2	0	1	3	New stores	0	0	0	2	2
Closed stores	0	0	0	0	0	Closed stores	2	1	1	0	4
Relocated stores	0	1	2	3	6	Relocated stores	3	1	2	2	8
Refurbished stores	5	3	0	1	9	Refurbished stores	1	2	1	6	10

2023	Q1	Q2	Q3	Q4	Total	2023	Q1	Q2	Q3	Q4	Total
New stores	0	1	0		1	New stores	1	0	0		1
Closed stores	1	0	0		1	Closed stores	2	1	0		3
Relocated stores	2	1	0		3	Relocated stores	1	3	3		7
Refurbished stores	5	3	1		9	Refurbished stores	1	0	1		2
Total number of stores	155	156	156			Total number of stores*	129	128	128

*incl franchise stores

Logistic costs – Sweden

Logistic costs - Sweden

									Total year	Total year
(MSEK)	Q1 2023	Q1 2022	Q2 2023	Q2 2022	Q3 2023	Q3 2022	Q4 2023	Q4 2022	2023	2022
Employee benefits expense			2 2		4 4				6 5
Third-party logistics expense	12 1	10 5	1 7	10 9		12 4		15 4	13 9	49 1
Central warehouse expenses	2 0	1 7	9 9	2 0	8 3	1 6		2 3	20 2	7 5
Total incl . non-recurring items	14 2	12 1	13 7	12 8	12 7	14 0	0 0	17 7	40 6	56 6
Non-recurring items
Employee benefits expense	-0 8		-0 6						-1 4
Third-party logistics expense	-2 2		-1 7		0 4				-3 5
Central warehouse expenses	-0 5								-0 5
Total excl . non-recurring items	10 7	12 1	11 4	12 8	13 1	14 0	0 0	17 7	35 2	56 6