Kid ASA

Quarterly Report • Nov 14, 2018

Interim report Q3 2018 Kid ASA

Dear Shareholders

I started as the CEO of Kid on November 1st, and I have now spent two weeks getting more familiar with the company. So far I am very impressed by the many talents across the organisation, and I truly look forward to maintain Kid's strong position, in addition to pursuing new opportunities. Following previous reports, I will continue to summarise our most important activities, plans and results in this letter.

These are the key takeaways from the third quarter:

• Solid results after a slow July, but strong August and September, with a revenue growth of 7,1 % and an EBITDA of MNOK 78.9 (MNOK 60.3).
• Following the trend from the previous months, we continued to see strong sales figures for spring and summer goods in July, while sales of the full-year assortment declined . While May, June and July were unusually warm and dry, the weather situation normalised in early August, and customers shifted their focus back indoors towards interior and home textiles.
• The gross margin was up 2.3 percentage points from the third quarter last year, mainly due to a favourable USD exchange rate. We expect additional positive effects from our hedging position in the fourth quarter, with some inventory spillover effects into the first quarter of 2019. The USDNOK rate is now hedged for most of our expected goods purchases in the first half of 2019 on higher exchange rates. The positive gross margin is therefore considered temporary, and we expect to gradually revert to 2016 and 2017 levels.

The new stores in Jærhagen (Klepp) and Lagunen (Bergen) will open in mid-November 2018. Also, we are pleased to confirm that we have recently signed two additional store lease agreements - one in City Lade (Trondheim) that will open on Black Friday 2018, and one in CC

Vest (Akershus) that will open in the first quarter of 2019. These are Norway's 11th and 7th largest shopping centres respectively. We have also decided to terminate our lease agreements in Kløverhuset (Bergen) and Laksevåg (Bergen) during the first quarter of 2019, as the market in Bergen is sufficiently covered by our remaining store network.

• Kid has a strong position in Norway within the curtain category. Over recent years, we have seen increased demand for technical sunscreens due to a shift in interior trends, while curtains have experienced declining sales volumes. This autumn however, we have seen a shift in demand back to curtains, and we are happy to see positive growth again for our most important category.
• In August, we launched a renewed version of our Children category under our new brand "KidsKids". The launch was well received by our customers and puts Kid on the map for trendier and more environmentally conscious parents shopping for their toddlers.
• Innovation and product development are key to our success. During the third quarter, we increased the number of design and sourcing teams from three to four, each with responsibility for developing and purchasing our products. This will enable us to put even more effort into developing and innovating our assortment going forward.
• Advertising on linear TV has been an important marketing channel for Kid over the past 15 years. As the Norwegian consumers now shift towards streaming and other digital TV channels, we see a decline in linear TV and commercial viewership. In order to respond to this trend, we released digital marketing films targeting younger consumers and students. The results were positive, and we will continue to explore this marketing channel going forward.

We are now heading into our season finale of the year – Christmas. Our preparations for the quarter have been thorough, and we are looking forward to inspiring our customers in both stores and online.

Yours sincerely,

Anders Fjeld CEO

Third quarter in brief

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

• Revenues of MNOK 368.1 (MNOK 343.8) in Q3 2018, an increase of 7.1% (9.5%). The number of ordinary shopping days in the third quarter was 78, compared to 79 days last year. For the first three quarters of 2018, revenues amounted to MNOK 924.5 (MNOK 876.1), up 5.5% (7.3%) from 2017. The number of ordinary shopping days for the first three quarters was 226 (227).
• Like-for-like sales increased by 5.6% (5.1%) in the quarter and increased by 2.2% (4.3%) for the first three quarters.
• Positive impact of early Easter, especially when comparing with last year's low traffic Gross margin of 63.1% (60.8%) in Q3 and 61.2% (60.8%) for the first three quarters. The gross margin was positively affected by a lower hedged USDNOK in Q3 compared to last year.
• number due to the winter Olympics EBITDA of MNOK 78.9 (MNOK 60.5) in Q3. For the first three quarters, EBITDA was MNOK 108.9 (MNOK 89.3).
• [Two] net new store openings, [X] store refurbishments and [x] store relocations Adjusted EPS increased to NOK 3.45 (2.99) for the last twelve months.
• EBITDA of NOK 11.2 million (NOK 8.9 million), up 26.3% [Accounting effects] The index for sale of home textiles in Q3 2018 in specialised stores in Norway increased by 2.5% compared to an increase of 7.1% for Kid, according to Statistics Norway. The latest accurate market statistic based on tax returns data show a market growth of 0.8% for the twelve months ending 30.06.2018. For the same period, Kid increased revenues by 5.7% and the market share to 34.2% (32.7%).
• There were no changes in the store portfolio during the quarter. The total number of physical stores at the end of the quarter was 140 (138).

Revenues, MNOK Like-for-like growth

Key figures

(Amounts in NOK million)	Q3 2018	Q3 2017	Q1-Q3 2018	Q1-Q3 2017	Full year 2017
Revenues	368,1	343,8	924,5	876,1	1381,7
Growth	7,1%	9,5%	5,5%	7,3%	6,8%
LFL growth including online sales	5,6%	5,1%	2,2%	4,3%	3,1%
No. of shopping days in period	78	79	226	227	303
No. of physical stores at period end	140	138	140	138	140
COGS	-135,8	-134,9	-358,7	-343,8	-547,6
Gross profit	232,3	209,0	565,9	532,4	834,0
Gross margin (%)	63,1%	60,8%	61,2%	60,8%	60,4%
EBITDA	78,9	60,5	108,9	89,3	214,5
EBITDA margin (%)	21,4%	17,6%	11,8%	10,2%	15,5%
EBIT	69,6	51,4	81,1	63,8	179,7
EBIT margin (%)	18,9%	14,9%	8,8%	7,3%	13,0%
Adj. Net Income*	51,1	36,4	54,5	41,2	126,7
#shares at period end	40,6	40,6	40,6	40,6	40,6
Adj. Earnings per share	1,26	0,90	1,34	1,01	3,12
Net interest bearing debt	378,5	439,3	378,5	439,3	299,4

*Adjusted for change in deferred tax caused by lower tax rate in Q4-2017.

2017 2018

EBIT margin Number of physical stores (period end)

Financial review

The figures reported in the Q3 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 third quarter amounted to MNOK 368.1 (MNOK 343.8) in 2018, an increase of 7.1% (9.5%) compared to the third quarter of 2017. The number of ordinary shopping days in the third quarter was 78, compared to 79 days last. For the first three quarters of 2018, revenues increased by 5.5% (7.3%). The number of ordinary shopping days for the first three quarters was 226 (227).

Online sales increased by 102.1% (35.9%) in the third quarter of 2018. The online growth increase was driven by the new category "made to measure sun screening" which was launched in March 2018. Last twelve months, online revenues were MNOK 61.9 (MNOK 38.4) as of 30 September 2018 - a growth of 61.1% from the corresponding period last year. The online share of total revenues was 4.3% (2.8%) for the last twelve months.

There were no changes in the store portfolio during the quarter. The total number of physical stores at the end of the quarter was 140 (138).

Gross margin was 63.1% (60.8%) for the third quarter, and 61.2% (60.8%) for the first three quarters. The gross margin was positively affected by a lower hedged USDNOK in Q3 compared to last 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.

Gross margin (hedge accounting):

Operating expenses, including employee benefit expenses, were MNOK 153.4 (MNOK 148.5) in the third quarter, up 3.3% from Q3 2017. For the first three quarters of 2018, operating expenses including employee benefit expenses amounted to MNOK 457.0 (MNOK 443.7). There were no adjustments for extraordinary operating expenses in 2017 or 2018.

Employee expenses increased by 0.1% to MNOK 72.3 (MNOK 72.2) in the third quarter:

• No impact from net new stores
• -1.1 percentage points decrease due to general salary inflation and decreased staffing level in stores. The store staffing level was reduced in July due to low customer traffic, and increased gradually during the quarter.
• 1.2 percentage points increase due to increased provision for store bonuses.

Interim report Q3 2018 Kid ASA

Other operating expenses increased by 6.3% in the quarter to MNOK 81.1 (MNOK 76.3):

• 1.1 percentage points related to retail space rental costs for net new stores.
• 1.4 percentage points related to other store and HQ rental costs driven by inflation and relocation of stores.
• 1.1 percentage points related to an increase in marketing expenses.
• 2.7 percentage points related to other OPEX.

EBITDA amounted to MNOK 78.9 (MNOK 60.5) in the third quarter. This represents an EBITDA margin of 21.4% (17.6%).

EBITDA for the first three quarters of 2018 was MNOK 108.9 (MNOK 89.3), an increase of 22.0% driven by revenue growth, an increase of gross margin and increased cost efficiency.

EBIT amounted to MNOK 69.6 (MNOK 51.4) in the third quarter. This represents an EBIT margin of 18.9% (14.9%). EBIT was affected by increased depreciation due to last year's CAPEX levels.

EBIT for the first three quarters amounted to MNOK 81.1 (MNOK 63.8), corresponding to an EBIT margin of 8.8% (7.3%).

Net financial expenses amounted to MNOK 3.1 (MNOK 3.4) in the third quarter, and MNOK 10.1 (MNOK 9.6) for the first three quarters of 2018.

Net income amounted to MNOK 51.1 (MNOK 36.4) in the third quarter. Net income for the first three quarters was MNOK 54.5 (MNOK 41.2).

EBITDA

Events after the end of the reporting period

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 October to December 2018 have a weighted exchange rate of 7.79 compared to 8.26 for the same period last year. For the period January 2019 to May 2019, the weighted exchange rate is 8.18 compared to 8.02 for the same period in 2018.

At the Annual General Meeting in May, the Board of Directors were authorized to approve the distribution of a half-year dividend based on the annual accounts for 2017. The Board of Directors have based the decision on the current dividend policy whereby 60-70% of the annual adjusted results after tax are distributed as a dividend. The Board of Directors have made a resolution to pay a half-year dividend of NOK 1.20 per share in November 2018, representing 35% of adjusted net income for the last twelve months. The board will propose the next dividend payment in the Q4 report based on the fiscal year 2018 results, with payment date in May 2019.

The Board of Directors welcome Anders Fjeld as the new CEO of Kid from 1 November 2018. Mr. Fjeld holds 28.999 shares in Kid ASA. The new CFO, Henrik Frisell, will start in his new position on 1 January 2019.

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

Lier, 14th November 2018

Interim Report Q3 2018 Kid ASA

Kid ASA Q3 2018

Financial statements

Interim condensed consolidated statement of profit and loss

(Amounts in NOK thousand)	Note	Q3 2018	Q3 2017	Q1-Q3 2018	Q1-Q3 2017	2017
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
Revenue		368 122	343 848	924 532	876 125	1 381 675
Other operating revenue Total revenue		15 368 137	39 343 887	59 924 592	635 876 760	667 1 382 342
Cost of goods sold		135 838	134 882	358 680	343 757	547 627
Employee benefits expence		72 280	72 216	218 650	217 033	306 471
Depreciation and amortisation expenses	9	9 307	9 130	27 867	25 509	34 839
Other operating expenses		81 097	76 276	238 333	226 652	313 716
Total operating expenses		298 522	292 504	843 531	812 951	1 202 653
Operating profit		69 615	51 383	81 061	63 809	179 689
Other financial income Other financial expense		79 3 214	135 3 558	347 10 445	608 10 216	821 13 480
Changes in fair value of financial assets		0	0	0	0	0
Net financial income (+) / expense (-)		-3 135	-3 423	-10 099	-9 608	-12 659
Profit before tax		66 481	47 960	70 963	54 201	167 030
Income tax expense		15 404	11 528	16 443	13 029	25 705
Net profit (loss) for the period		51 076	36 432	54 520	41 172	141 325
Interim condensed consolidated statement of comprehensive
income
Profit for the period		51 076	36 432	54 520	41 172	141 325
Other comprehensive income		1 114	-11 546	4 707	-16 239	-9 420
Tax on comprehensive income		-256	2 771	-1 083	3 897	2 284
Total comprehensive income for the period		52 447	22 115	60 309	21 036	129 622
Attributable to equity holders of the parent		51 934	27 655	58 144	28 831	134 189
Basic and diluted Earnings per share (EPS):		1,26	0,90	1,34	1,01	3,48

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	30.09.2018	30.09.2017	31.12.2017
Assets		Unaudited	Unaudited	Audited
Trademark	9	1 462 292	1 461 990	1 462 354
Store lease rights		7 004	8 895	8 423
Total intangible assets		1 469 297	1 470 885	1 470 776
Fixtures and fittings, tools, office machinery and equipment	9	87 980	93 589	91 896
Total tangible assets		87 980	93 589	91 896
Total fixed assets		1 557 277	1 564 474	1 562 672
Inventories		328 744	346 837	301 997
Trade receivables		3 663	3 480	3 500
Other receivables	6	24 605	23 469	28 506
Derivatives	6	2 104	0	4 180
Totalt receivables		30 371	26 949	36 185
Cash and bank deposits		99 735	40 537	130 071
Total currents assets		458 850	414 323	468 252
Total assets		2 016 127	1 978 798	2 030 924

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

Interim condensed consolidated statement of financial

(Amounts in NOK thousand)	Note	30.09.2018	30.09.2018	31.12.2017
Equity and liabilities		Unaudited	Unaudited	Audited
Share capital		48 774	48 774	48 774
Share premium		321 049	321 049	321 049
Other paid-in-equity		64 617	64 617	64 617
Total paid-in-equity		434 440	434 440	434 440
Other equity		585 428	517 919	584 077
Total equity		1 019 868	952 359	1 018 516
Deferred tax		334 486	347 250	334 585
Total provisions		334 486	347 250	334 585
Liabilities to financial institutions		428 267	429 811	429 433
Total long-term liabilities		428 267	429 811	429 433
Liabilities to financial institutions		50 000	50 000	0
Trade payables		41 976	39 806	45 161
Tax payable		17 643	33 749	40 415
Derivative financial instruments		0	4 732	0
Public duties payable		81 996	76 006	104 674
Other short-term liabilities		41 890	45 086	58 139
Total short-term liabilities		233 505	249 379	248 390
Total liabilities		996 259	1 026 440	1 012 408
Total equity and liabilities		2 016 127	1 978 798	2 030 924

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 2017	434 440	567 852	1 002 292
Profit for the period YTD 2017	0	41 173	41 173
Other comprehensive income	0	-12 342	-12 342
Cash flow hedges	0	2 527	2 527
Dividend	0	-81 290	-81 290
Balance as at 30 Sept 2017	434 440	517 920	952 359
Balance at 1 Jan 2018	434 440	584 077	1 018 516
Profit for the period YTD 2018	0	54 520	54 520
Other comprehensive income	0	3 624	3 624
Cash flow hedges	0	-3 954	-3 954
Dividend	0	-52 839	-52 839
Balance as at 30 Sept 2018	434 440	585 429	1 019 868

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	Q3 2018 Unaudited	Q3 2017 Unaudited	Q1-Q3 2018 Unaudited	Q1-Q3 2017 Unaudited	2017 Audited
Cash flow from operations
Profit before income taxes		66 481	47 958	70 963	54 201	167 030
Taxes paid in the period		0	0	-39 215	-20 129	-40 849
Gain/loss from sale of fixed assets		0	0	0	0	0
Depreciation & impairment	9	9 307	9 130	27 867	25 509	34 839
Change in financial derivatives		0	0	0	0	0
Differences in expensed pensions and payments in/out of
the pension scheme		0	0	0	0	0
Effect of exchange fluctuations		0	0	0	0	0
Items classified as investments or financing		3 607	3 897	11 517	10 212	13 736
Change in net working capital
Change in inventory		-28 664	-62 441	-26 747	-124 647	-79 807
Change in trade debtors		-347	-1 704	-163	-952	-972
Change in trade creditors		6 744	503	-3 185	-820	4 536
Change in other provisions*		25 868	25 518	-32 564	-16 830	19 633
Net cash flow from operations		82 996	22 861	8 473	-73 455	118 146
Cash flow from investments
Net proceeds from investment activities		0	0	0	0	0
Purchase of store lease rights		0	0	0	-9 500	-9 500
Purchase of fixed assets	9	-4 945	-8 341	-23 890	-29 574	-37 573
Net cash flow from investments		-4 945	-8 341	-23 890	-39 074	-47 073
Cash flow from financing
Repayment of long term loans		-396	1 603	-1 166	-96 734	-197 111
Repayment of short term loans		-50 000	-50 000	50 000	-50 000	0
Net interest		-3 339	-3 089	-9 817	-11 027	-14 517
Net change in bank overdraft		0	0	0	100 000	100 000
Dividend payment		0	0	-52 839	-81 290	-121 935
Net proceeds from shares issued		0	0	0	0	0
Net cash flow from financing		-53 735	-51 486	-13 821	-139 051	-233 563
Cash and cash equivalents at the beginning of the period		75 351	77 312	130 071	291 852	291 852
Net change in cash and cash equivalents		24 317	-36 966	-29 239	-251 580	-162 490
Exchange gains / (losses) on cash and cash equivalents		68	190	-1 097	265	710
Cash and cash equivalents at the end of the period		99 735	40 536	99 735	40 536	130 071

*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 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 nine months ended 30 September 2018 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 2017, 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 2017.

Amendments to IFRSs effective for the financial year ending 31 December 2018 are not expected to have a material impact on the group.

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

The group will implement IFRS 16 from 1.1.2019 by applying the modified retrospective approach. At the date of initial application of the new leases standard, lessees recognise the cumulative effect of initial application as an adjustment to the opening balance of equity as of 1 January 2019. Please see the 2017 annual report for further information about the implementation principles and the expected effects on the financial statements.

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 2017.

Note 5 Segment information

The Group sells home textiles in 140 fully owned stores across Norway and through the Group's online website. Over 98% 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 2017. 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 30 September 2018 and 30 September 2017.

(Amounts in NOK thousand)	30 September 2018		30 September 2017
Financial assets	Carrying amount	Fair value	Carrying amount	Fair value
Loans and receivables
Trade and other receivables excluding pre-payments	3 688	3 688	3 480	3 480
Cash and cash equivalents	99 735	99 735	40 537	40 537
Total	103 423	103 423	44 017	44 017

Financial liabilities
Borrowings (excluding finance lease liabilities)	475 000	475 000	475 000	475 000
Finance lease liabilities	3 267	3 267	4 811	4 811
Trade and other payables excluding non-financial liabilities	122 785	122 785	115 812	115 812
Total	601 052	601 052	595 623	595 623
Financial instruments measured at fair value through profit and loss
Derivatives - asset
Foreign exchange forward contracts	2 104	2 104	0	0
Total	2 104	2 104	0	0
Derivatives – liabilities
Foreign exchange forward contracts	0	0	4 732	4 732
Total	0	0	4 732	4 732

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

					Full Year
	Q3 2018	Q3 2017	Q1-Q3 2018	Q1-Q3 2017	2017
Weighted number of ordinary shares	40 645 162	40 645 162	40 645 162	40 645 162	40 645 162
Net profit or loss for the year	51 076	36 430	54 520	41 173	141 325
Earnings per share (basic and diluted)
(Expressed in NOK per share)	1,26	0,90	1,34	1,01	3,48

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 nine months ended 30 September 2018 and 2017:

Lease agreements:	Q1-Q3 2018	Q1-Q3 2017
Gilhus Invest AS (Headquarter rental)*	0	11 757
Vågsgaten Handel AS with subsidiaries (Store rental)	956	939
Total	956	12 696

* 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 01.01.2018	91,9	1462,4	8,4
Additions	22,9	1,0	0,0
Disposals and write downs
Depreciation and amortisation	-26,8	-1,1	-1,4
Balance 30.09.2018	88,0	1462,3	7,0

(amounts in NOK million)	PPE	Trademark	Store lease rights
Balance 01.01.2017	88,5	1463,0	0
Additions	29,6	0,0	10
Disposals and write downs
Depreciation and amortisation	-24,5	-1,0	-1
Balance 30.09.2017	93,6	1462,0	9

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.