Kid ASA

Quarterly Report • Aug 16, 2018

Interim report Q2 2018

Interim report Q2 2018 Kid ASA

Dear Shareholders

The second quarter is our most weather-dependent period of the year as we target the Norwegian consumer's outdoor home environment. It is also peak season for home refurbishment and improvement. Norway experienced unusually warm and dry weather during May and June and despite a negative impact on several retailers and lower footfall in many shopping centres, Kid saw strong sales figures for our seasonal spring and summer goods. The full-year assortment, however, showed negative growth over this period. This resulted in a disappointing total growth of just 1% this quarter. However,through strong cost and margin control we managed to maintain an acceptable EBITDA level.

These are the key takeaways from the second quarter:

• As a result of positive sales for the seasonal spring and summer items during the second quarter, our inventory situation is healthy heading into Q3 and Q4.
• We continue to utilise new technology for smarter and more efficient work processes. During the second quarter, we implemented September BI as a new app-based reporting and store operations tool. The app enables all of our store staff to track KPIs on both a store and an individual basis to benchmark relative performance.
• Our efforts to create more sustainable retail operations continue. As one of the first companies in Norway, we started to use recyclable paper bags for our online orders during the second quarter. The initiative has received positive customer feedback.
• The EU General Data Protection Regulation (GDPR) came into effect as Norwegian law on July 20, 2018. When we started the process of gathering acceptance of new terms and conditions from existing members of the customer club last summer, we had approximately 750,000 members with a registered email address. I am happy to report that we have managed to maintain the size of our membership base at the same level as last year, while

being compliant with GDPR. The customer club is an important digital communication channel for us and we are now working on implementing a new CRM system that will enable us to tailor communication to the individual club members, making this channel even more relevant and valuable to our customers.

As we publish this report, we are launching our back-to-school campaign in August. This marks the beginning of our most important sales period of the year in Q3 and Q4. We are well prepared for the season with a new assortment, fresh marketing material and 140 inspirational stores working alongside our online shop.

Yours sincerely,

Kjersti Hobøl CEO

Second quarter in brief

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

• Revenues of MNOK 281.5 (MNOK 278.4) in Q2 2018, an increase of 1.1% (4.9%). The number of ordinary shopping days in the second quarter was 73, compared to 71 days last year due to the timing of Easter. Revenues from seasonal products increased by 16% in the quarter. For the first two quarters of 2018, revenues amounted to MNOK 556.4 (MNOK 532.3), up 4.5% (7.3%) from 2017. The number of ordinary shopping days for the first two quarters was 148 (148).
• Like-for-like sales decreased by -2.7% (+2.8%) in the quarter and increased by 0.1% (5.1%) for the first two quarters.
• Gross margin of 61.5% (61.6%) in Q2 and 60.0% (60.8%) for the first two quarters.
• Positive impact of early Easter, especially when comparing with last year's low traffic EBITDA of MNOK 20.1 (MNOK 21.6) in Q2. For the first two quarters, EBITDA was MNOK 30.0 (MNOK 28.8).
• number due to the winter Olympics Adjusted EPS increased to NOK 3.09 (2.97) for the last twelve months.
• [Two] net new store openings, [X] store refurbishments and [x] store relocations EBITDA of NOK 11.2 million (NOK 8.9 million), up 26.3% The index for sale of home textiles in Q2 2018 in specialised stores in Norway decreased by -4.4% compared to an increase of +1.1% for Kid, according to Statistics Norway. The latest accurate market statistic based on tax returns data show a market growth of 1.8% for the twelve months ending 28.02.2018. For the same period, Kid increased revenues by 6.8% and the market share to 33.8% (32.2%).
• [Accounting effects] A new store opened at Forus (Stavanger) during Q2. The stores at Sortland and Rosenlund (Lillehammer) were relocated, and the stores at Mosenteret (Mo i Rana), AMFI Borg (Sarpsborg), AMFI Namsos (Namsos), Horisont (Bergen) and AMFI Svolvær (Svolvær) were refurbished in Q2. The total number of physical stores at the end of the quarter was 140 (134).

Revenues, MNOK Like-for-like growth

Key figures

(Amounts in NOK million)	Q2 2018	Q2 2017	H1 2018	H1 2017	Full year 2017
Revenues	281,5	278,4	556,4	532,3	1381,7
Growth	1,1%	4,9%	4,5%	7,3%	6,8%
LFL growth including online sales	-2,7%	2,8%	0,1%	5,1%	3,1%
No. of shopping days in period	73	71	148	148	303
No. of physical stores at period end	140	137	140	137	140
COGS	-108,5	-107,0	-222,8	-208,9	-547,6
Gross profit	173,0	171,4	333,6	323,4	834,0
Gross margin (%)	61,5%	61,6%	60,0%	60,8%	60,4%
EBITDA	20,1	21,6	30,0	28,8	214,5
EBITDA margin (%)	7,1%	7,7%	5,4%	5,4%	15,5%
EBIT	10,8	13,2	11,4	12,4	179,7
EBIT margin (%)	3,8%	4,7%	2,1%	2,3%	13,0%
Adj. Net Income*	5,2	7,8	3,4	4,7	126,7
#shares at period end	40,6	40,6	40,6	40,6	40,6
Adj. Earnings per share	0,13	0,19	0,08	0,12	3,12
Net interest bearing debt	453,3	450,9	453,3	450,9	299,4

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

Financial review

The figures reported in the Q2 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 second quarter amounted to MNOK 281.5 (MNOK 278.4) in Q2 2018, an increase of 1.1% (4.9%) compared to the second quarter of 2017. The number of ordinary shopping days in the second quarter was 73, compared to 71 days last year due to the timing of Easter. For the first two quarters of 2018, revenues increased by 4.5% (7.3%). The number of ordinary shopping days for the first two quarters was 148 (148).

Online sales increased by 72.3% (46.7%) in the second 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 53.1 (MNOK 36.2) as of 30 June 2018 - a growth of 46.8% from the corresponding period last year.

During the second quarter of 2018, a new store was opened at Forus (Stavanger). The stores at Sortland and Rosenlund (Lillehammer) were relocated, and the stores at Mosenteret (Mo i Rana), AMFI Borg (Sarpsborg), AMFI Namsos (Namsos), Horisont (Bergen) and AMFI Svolvær (Svolvær) were refurbished. The total number of physical stores at the end of the quarter was 140 (134).

Gross margin was 61.5% (61.6%) for the second quarter, and 60.0% (60.8%) for the first two quarters. 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 153.0 (MNOK 149.8) in the second quarter, up 2.1% from Q2 2017. For the first two quarters of 2018, operating expenses including employee benefit expenses amounted to MNOK 303.6 (MNOK 295.2). There were no adjustments for extraordinary operating expenses in 2017 or 2018.

Employee expenses decreased by -0.3% to MNOK 71.3 (MNOK 71.6) in the second quarter:

• 2.4 percentage points due to net new stores.
• 1.2 percentage points due to general salary inflation and decreased staffing level in stores driven by lower sales
• -3.9 percentage points due to reduced provision for store bonuses. These provisions was above the normal level last year.

Other operating expenses increased by 4.3% in the quarter to MNOK 81.6 (MNOK 78.2):

2.8 percentage points related to retail space rental costs for net new stores.

Interim report Q2 2018 Kid ASA

• 0.6 percentage points related to other store and HQ rental costs driven by inflation and relocation of stores.
• -0.6 percentage points related to a decrease in marketing expenses.
• 1.5 percentage points related to other OPEX.

EBITDA amounted to MNOK 20.1 (MNOK 21.6) in the second quarter. This represents an EBITDA margin of 7.1% (7.7%).

EBITDA for the first two quarters of 2018 was MNOK 30.0 (MNOK 28.8), an increase of 4.2% driven by revenue growth, a decrease of gross margin and increased cost efficiency.

EBITDA

2017 2018

EBIT amounted to MNOK 10.8 (MNOK 13.2) in the second quarter. This represents an EBIT margin of 3.8% (4.7%). EBIT was affected by increased depreciation due to last year's CAPEX levels.

EBIT for the first two quarters amounted to MNOK 11.5 (MNOK 12.4), corresponding to an EBIT margin of 2.1% (2.3%).

Net financial expenses amounted to MNOK 4.0 (MNOK 3.0) in the second quarter, and MNOK 7.0 (MNOK 6.2) for the first two quarters of 2018.

The increase in financial expenses was driven by higher net interest bearing debt during the quarter combined with increased interest rate and margin. Reference is made to the Q2-2017 report were the current lending agreement is described.

Net income amounted to MNOK 5.2 (MNOK 7.8) in the second quarter. Net income for the first two quarters was MNOK 3.4 (MNOK 4.7).

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 July to December 2018 have a weighted exchange rate of 7.76 compared to 8.35 for the same period last year.

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

Lier, 16th August 2018

Interim Report Q2 2018 Kid ASA

Kid ASA Q2 2018

Financial statements

Interim condensed consolidated statement of profit and loss

(Amounts in NOK thousand)	Note	Q2 2018	Q2 2017	H1 2018	H1 2017	2017
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
Revenue		281 517	278 365	556 410	532 277	1 381 675
Other operating revenue		28	22	44	597	667
Total revenue		281 545	278 387	556 454	532 873	1 382 342
Cost of goods sold		108 522	107 012	222 842	208 875	547 627
Employee benefits expence		71 340	71 562	146 370	144 816	306 471
Depreciation and amortisation expenses	9	9 304	8 354	18 561	16 379	34 839
Other operating expenses		81 622	78 245	157 236	150 376	313 716
Total operating expenses		270 789	265 174	545 009	520 446	1 202 653
Operating profit		10 757	13 213	11 446	12 427	179 689
Other financial income		83	130	268	474	821
Other financial expense		4 058	3 137	7 232	6 657	13 480
Net financial income (+) / expense (-)		-3 975	-3 006	-6 964	-6 184	-12 659
Profit before tax		6 782	10 207	4 482	6 243	167 030
Income tax expense		1 571	2 453	1 039	1 501	25 705
Net profit (loss) for the period		5 210	7 753	3 443	4 742	141 325
Interim condensed consolidated statement of comprehensive
income
Profit for the period		5 210	7 753	3 443	4 742	141 325
Other comprehensive income		9 696	-5 462	3 593	-4 693	-9 420
Tax on comprehensive income		-2 230	1 311	-826	1 126	2 284
Total comprehensive income for the period		17 136	980	7 863	-1 078	129 622
Attributable to equity holders of the parent		12 676	3 602	6 210	1 175	134 189
Basic and diluted Earnings per share (EPS):		0,13	0,19	0,08	0,12	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	30.06.2018	30.06.2017	31.12.2017
Assets		Unaudited	Unaudited	Audited
Trademark	9	1 461 642	1 462 335	1 462 354
Store lease rights		7 477	9 368	8 423
Total intangible assets		1 469 119	1 471 703	1 470 776
Fixtures and fittings, tools, office machinery and equipment	9	92 992	94 034	91 896
Total tangible assets		92 992	94 034	91 896
Total fixed assets		1 562 111	1 565 737	1 562 672
Inventories		300 080	284 396	301 997
Trade receivables		3 316	1 776	3 500
Other receivables	6	20 917	22 111	28 506
Derivatives	6	11 457	0	4 180
Totalt receivables		35 690	23 887	36 185
Cash and bank deposits		75 351	77 312	130 071
Total currents assets		411 121	385 595	468 252
Total assets		1 973 232	1 951 332	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	30.06.2018	30.06.2017	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	540 974	483 389	584 077
Total equity	975 414	917 829	1 018 516
Deferred tax	336 464	347 850	334 585
Total provisions	336 464	347 850	334 585
Liabilities to financial institutions	428 663	428 208	429 433
Total long-term liabilities	428 663	428 208	429 433
Liabilities to financial institutions	100 000	100 000	0
Trade payables	35 232	39 303	45 161
Tax payable	2 238	22 221	40 415
Derivative financial instruments	0	2 133	0
Public duties payable	52 904	51 167	104 674
Other short-term liabilities	42 316	42 622	58 139
Total short-term liabilities	232 690	257 446	248 390
Total liabilities	997 818	1 033 503	1 012 408
Total equity and liabilities	1 973 232	1 951 332	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 January 2017	434 440	567 852	1 002 292
Profit for the period YTD 2017	0	4 742	4 742
Other comprehensive income	0	-3 567	-3 567
Cash flow hedges	0	-4 348	-4 348
Dividends	0	-81 290	-81 290
Balance as at 30 June 2017	434 440	483 389	917 829
Balance at 1 January 2018	434 440	584 076	1 018 516
Profit for the period YTD 2018	0	3 443	3 443
Other comprehensive income	0	2 767	2 767
Cash flow hedges	0	3 526	3 526
Dividends	0	-52 839	-52 839
Balance as at 30 June 2018	434 440	540 974	975 414

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

Interim condensed consolidated statement of cash flows

						Full year
(Amounts in NOK thousand)	Note	Q2 2018	Q2 2017	H1 2018	H1 2017	2017
		Unaudited	Unaudited	Unaudited	Unaudited	Audited
Cash flow from operations
Profit before income taxes		6 782	10 207	4 482	6 243	167 030
Taxes paid in the period		-19 607	-10 064	-39 215	-20 129	-40 849
Depreciation & impairment	9	9 304	8 354	18 561	16 379	34 839
Items classified as investments or financing		4 448	3 138	7 909	6 316	13 736
Change in net working capital
Change in inventory		6 256	-31 670	1 917	-62 206	-79 807
Change in trade debtors		-208	107	184	752	-972
Change in trade creditors		-3 809	3 081	-9 929	-1 323	4 536
Change in other provisions*		-15 745	-15 454	-58 432	-42 348	19 633
Net cash flow from operations		-12 579	-32 301	-74 523	-96 316	118 146
Cash flow from investments
Purchase of store lease rights		0	-9 500	0	-9 500	-9 500
Purchase of fixed assets	9	-13 887	-14 817	-18 946	-21 233	-37 573
Net cash flow from investments		-13 887	-24 317	-18 946	-30 733	-47 073
Cash flow from financing
Repayment of long term loans		-387	-98 255	-770	-98 337	-197 111
Net interest		-3 448	-4 668	-6 478	-7 938	-14 517
Net change in bank overdraft		100 000	100 000	100 000	100 000	100 000
Dividend payment		-52 839	-81 290	-52 839	-81 290	-121 935
Net cash flow from financing		43 326	-84 214	39 914	-87 565	-233 563
Cash and cash equivalents at the beginning of the period		57 296	218 052	130 071	291 852	291 852
Net change in cash and cash equivalents		16 860	-140 832	-53 555	-214 614	-162 490
Exchange gains / (losses) on cash and cash equivalents		1 195	93	-1 165	75	710
Cash and cash equivalents at the end of the period		75 351	77 312	75 351	77 312	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 columns.

Note 2 Basis of preparations

These condensed interim financial statements for the three and twelve months ended 30 June 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 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 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

he 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 June 2018 and 30 June 2017.

(Amounts in NOK thousand)	30 June 2018		30 June 2017
Financial assets	Carrying amount	Fair value	Carrying amount	Fair value
Loans and receivables
Trade and other receivables excluding pre-payments	3 341	3 341	1 801	1 801
Cash and cash equivalents	75 351	75 351	77 312	77 312
Total	78 692	78 692	79 113	79 113

Financial liabilities
Borrowings (excluding finance lease liabilities)	525 000	525 000	525 000	525 000
Finance lease liabilities	3 663	3 663	3 208	3 208
Trade and other payables excluding non-financial liabilities	88 239	88 239	91 766	91 766
Total	616 902	616 902	620 429	620 429
Financial instruments measured at fair value through profit and loss
Derivatives - asset
Foreign exchange forward contracts	11 457	11 457	0	0
Total	11 457	11 457	0	0
Derivatives – liabilities
Foreign exchange forward contracts	0	0	2 133	2 133
Total	0	0	2 133	2 133

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

	Q2 2018	Q2 2017	H1 2018	H1 2017	Full Year 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	5 210	7 753	3 443	4 742	141 325
Earnings per share (basic and diluted) (Expressed in NOK per
share)	0,13	0,19	0,08	0,12	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 six months ended 30 June 2018 and 2017:

Lease agreements:	H1 2018	H1 2017
Gilhus Invest AS (Headquarter rental)*	0	7 536
Vågsgaten Handel AS with subsidiaries (Store rental)	640	626
Total	640	9 369

* 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	18,9
Disposals and write downs
Depreciation and amortisation	-17,8	-0,8	-0,9
Balance 30.06.2018	93,0	1461,6	7,5
(amounts in NOK million)	PPE	Trademark	Store lease rights
Balance 01.01.2017	88,5	1463,0	0,0
Additions	21,2		9,5
Disposals and write downs
Depreciation and amortisation	-15,7	-0,7	-0,1
Balance 30.06.2017	94,0	1462,3	9,4

Responsibility statement Kid ASA

We confirm, to the best of our knowledge, that the financial statements for the period 1 January to 30 June 2018 have been prepared in accordance with current applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the entity and the group taken as a whole. We also confirm that the Board of Directors' Report includes a true and fair review of the development and performance of the business and the position of the entity and the group, together with a description of the principal risks and uncertainties facing the entity and the group.

Lier, 16th August 2018

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.