Nobia — Interim / Quarterly Report 2010

Jul 19, 2010

Improved operating margin

(All figures in brackets refer to the corresponding period in 2009)

Sales for the second quarter amounted to SEK 3,796 million (4,291). Organic growth was negative 3 per cent. Operating profit, excluding restructuring costs of SEK 30 million (30), amounted to SEK 195 million (107), corresponding to an operating margin of 5.1 per cent (2.5). Profit after tax and restructuring costs totalled SEK 113 million (39), corresponding to earnings per share of SEK 0.68 (0.23). Operating cash flow amounted to SEK 310 million (456).

Nobia's sales trend during the second quarter remained negative, mainly due to negative translation effects totalling SEK 315 million (pos: 426).

The improvement in the company's operating profit compared with the second quarter of 2009 primarily derived from a more favourable sales mix, the implementation of price increases and reduced costs, which contributed to the improvement of the gross margin by approximately 3 percentage points compared with the second quarter of the preceding year.

Total operating profit remained unaffected by currency effects (0), of which translation effects amounted to negative SEK 15 million (pos: 10) and transaction effects to positive SEK 15 million (neg: 10).

Return on capital employed including restructuring costs amounted to 4.2 per cent (1.0) over the past twelve-month period.

Operating cash flow for the quarter was lower than in the preceding year, since working capital did not decline to the same extent.

Comments from the CEO

"I am very pleased with the company's positive margin trend during the quarter, especially given that the improvement was achieved in a difficult market situation. We noted increased demand in the new builds segment in the Nordic region, particularly in Finland and Sweden. The situation in the UK is difficult to assess due to the public funding austerity measures being implemented. The sales trend in the Continental Europe region was negative, mainly due to France. Our internal change programme is proceeding according to plan," summarises Preben Bager, President and CEO.

		Apr–Jun				Jan–Jun
Nobia Group Summary	2010	2009	Change, %	2010	2009	Change, %	2009/10	2009
Net sales, SEK m	3,796	4,291	–12	7,252	8,068	–10	14,602	15,418
Gross margin, %	39.6	36.8	–	38.5	35.5	–	38.3	36.7
Operating margin before depreciation and impairment losses, % (EBITDA)	8.1	6.0	–	5.5	4.4	–	6.3	5.6
Operating profit, SEK m (EBIT)	195	107	82	171	73	–	444	346
Operating margin, %	5.1	2.5	–	2.4	0.9	–	3.0	2.2
Profit after financial items, SEK m	178	85	–	129	24	–	376	271
Profit/loss after tax, SEK m	113	39	–	–21	–220	–	120	–79
Earnings per share, after dilution, SEK	0.68	0.23	–	–0.13	–1.32	–	0.72	–0.47
Operating cash flow, SEK m	310	456	–32	261	597	–56	467	803

All figures except "Profit/loss after tax," "Earnings per share" and "Operating cash flow" have been adjusted for restructuring costs. Further information about restructuring costs is available on page 10.

Net sales and operating margin

Net sales for the second quarter amounted to SEK 3,796 million and the operating margin was 5.1 per cent.

Profitability trend

Return on capital employed amounted to 4.2 per cent during the past 12-month period.

Earnings per share

Earnings per share after dilution amounted to SEK 0.72 over the most recent 12-month period.

Analysis of net sales and regional reporting

Sales for the second quarter were impacted negatively by translation effects totalling SEK 315 million (pos: 426). Organic growth was negative 3 per cent and was mainly attributable to the Continental Europe region.

Analysis of net sales	Apr–Jun			Jan–Jun
	%	SEK m	%	SEK m
2009		4,291		8,068
Organic growth	–3	–109	–2	–148
– of which UK region1)	–1	–17	0	–6
– of which Nordic region1)	–3	–40	–6	–176
– of which Continental Europe region1)	–6	–72	–1	–14
Currency effect and other	–7	–315	–7	–567
Acquired units2)	1	29	1	50
Discontinued units3)	–2	–100	–2	–151
2010	–12	3,796	–10	7,252

1) Organic growth for each region. 2) Acquired units refers to the stores HTH took over in

Denmark. 3) Discontinued units refers to Pronorm.

Net sales and profit/loss per region (operating segment)

	UK Apr–Jun		Nordic Apr–Jun		Continental Europe Apr–Jun		Other and Group adjustments Apr–Jun		Group Apr–Jun
SEK m	2010	2009	2010	2009	2010	2009	2010	2009	2010	2009	Change, %
Net sales	1,360	1,494	1,401	1,499	1,040	1,325	–5	–27	3,796	4,291	–12
Gross profit excluding restructuring costs	543	532	550	542	400	521	9	–18	1,502	1,577	–5
Gross margin excluding restructuring costs, %	39.9	35.6	39.3	36.2	38.5	39.3	–	–	39.6	36.8	–
Operating profit/loss excluding restructuring costs	98	26	115	91	10	24	–28	–34	195	107	82
Operating margin excluding restructuring costs, %	7.2	1.7	8.2	6.1	1.0	1.8	–	–	5.1	2.5	–
Operating profit/loss	89	26	115	66	–11	19	–28	–34	165	77	–
Operating margin, %	6.5	1.7	8.2	4.4	–1.1	1.4	–	–	4.3	1.8	–

Further information about restructuring costs is available on page 10.

Nobia develops and sells kitchens through some 20 strong brands in Europe, including Magnet in the UK, Hygena in France, HTH, Norema, Sigdal, Invita, Marbodal and Myresjökök in Scandinavia, and Petra, Parma and A la Carte in Finland, EWE and FM in Austria, Optifit in Germany and Poggenpohl globally. Nobia generates profitability by combining economies of scale with attractive kitchen offerings. The Group has approximately 8,000 employees and net sales of about SEK 15 billion. The Nobia share is listed on NASDAQ OMX Stockholm under the short name NOBI. Website: www.nobia.com. Read more about the company under "About Nobia." Financial information can be found under "Investors."

UK Region

Net sales in the second quarter amounted to SEK 1,360 million (1,494). Organic growth was negative 1 per cent. Operating profit for the quarter was charged with restructuring costs of SEK 9 million (–) for the ongoing restructuring and efficiency measures being implemented in the operations. Profit rose to SEK 98 million (26) and the operating margin excluding restructuring costs was 7.2 per cent (1.7). The currency effect on operating profit amounted to negative SEK 5 million (neg: 20), of which approximately positive SEK 5 million comprised transaction effects and about negative SEK 10 million comprised translation effects.

Kitchen market

Demand in the UK kitchen market is deemed to have improved marginally compared with the corresponding quarter in the preceding year.

Nobia

The sales trend was somewhat negative in the second quarter, mainly due to a decline in sales to DIY chains. Other sales channels performed slightly better. A slowdown was noted in June, which is deemed to be an effect of the economic climate in the UK.

The improvement in operating profit was primarily attributable to three factors: increased sales of kitchens in relation to joinery products, meaning that the company had a more favourable sales mix, the implementation of price increases and reduced costs as a result of the company's ongoing change programme.

The gross margin improved to 39.9 per cent (35.6). Measured in local currency, the region's operating profit excluding restructuring costs amounted to GBP 8.8 million (2.2).

Quarterly data in SEK

	2010		2009
	II	I	IV	III	II	I
Net sales, SEK m	1,360	1,284	1,399	1,361	1,494	1,369
Gross profit excluding restructuring costs, SEK m	543	473	522	492	532	454
Gross margin excluding restructuring costs, %	39.9	36.8	37.3	36.1	35.6	33.2
Operating profit excluding restructuring costs, SEK m	98	41	114	65	26	31
Operating margin excluding restructuring costs, %	7.2	3.2	8.1	4.8	1.7	2.3
Operating profit, SEK m	89	41	114	65	26	31
Operating margin, %	6.5	3.2	8.1	4.8	1.7	2.3

Quarterly data in GBP

	2010		2009
	II	I	IV	III	II	I
Net sales, GBP m	120.4	114.6	122.2	113.8	121.9	113.6
Gross profit excluding restructuring costs, GBP m	48.1	42.2	45.5	41.1	43.4	37.7
Gross margin excluding restructuring costs, %	40.0	36.8	37.2	36.1	35.6	33.2
Operating profit excluding restructuring costs, GBP m	8.8	3.6	9.7	5.3	2.2	2.6
Operating margin excluding restructuring costs, %	7.3	3.1	7.9	4.7	1.8	2.3
Operating profit, GBP m	7.9	3.6	9.7	5.3	2.2	2.6
Operating margin, %	6.6	3.1	7.9	4.7	1.8	2.3

Store trend, April–June

Refurbished or relocated	0
Newly opened, net	0
Number of kitchen stores (Group-owned)	221

Nordic region

Net sales in the second quarter declined to SEK 1,401 million (1,499). Organic growth was negative 3 per cent. Operating profit for the quarter rose to SEK 115 million (91) and the operating margin was 8.2 per cent (6.1). The currency effect on operating profit amounted to positive SEK 5 million (0), of which approximately positive SEK 10 million comprised transaction effects and about negative SEK 5 million comprised translation effects.

Kitchen market

The Nordic kitchen market as a whole is deemed to have performed somewhat positively compared with the corresponding quarter in the preceding year. The positive trend was particularly evident in the Finnish market.

Nobia

The sales trend remained weak during the quarter, mainly due to a decline in sales to the renovation segment. However, HTH's DIY concept, which is now established throughout the Scandinavian market, strengthened its position in the lower and middle price segment.

No general upturn in sales to the new builds segment can be reported, with the exception of Finland, where the market situation improved noticeably. However, lead times in sales to the new builds segment are long.

The improvement in operating profit was mainly attributable to lower costs as a result of structural measures implemented in 2009.

The gross margin improved to 39.3 per cent (36.2).

No restructuring costs were charged to the region during the period.

Quarterly data in SEK

	2010		2009
	II	I	IV	III	II	I
Net sales, SEK m	1,401	1,208	1,302	1,039	1,499	1,394
Gross profit excluding restructuring costs, SEK m	550	448	481	367	542	471
Gross margin excluding restructuring costs, %	39.3	37.1	36.9	35.3	36.2	33.8
Operating profit excluding restructuring costs, SEK m	115	17	64	15	91	17
Operating margin excluding restructuring costs, %	8.2	1.4	4.9	1.4	6.1	1.2
Operating profit/loss, SEK m	115	17	56	15	66	–212
Operating margin, %	8.2	1.4	4.3	1.4	4.4	–15.2

Store trend, April–June

Refurbished or relocated	–
Newly opened, net	1
Number of stores	285
of which franchise	196
of which Group-owned	89

Percentage of consolidated net sales, second quarter, %

Continental Europe Region

Net sales in the second quarter declined to SEK 1,040 million (1,325), mainly due to weaker sales in the French company Hygena, as well as the divestment of Pronorm in the first quarter. Organic growth was negative 6 per cent. Profit for the quarter was charged with restructuring costs for Hygena of SEK 21 million (5). Excluding these expenses, operating profit amounted to SEK 10 million (24). The currency effect on operating profit was approximately zero (20), including translation effects and transaction effects.

Kitchen market

On the whole, demand in Nobia's primary markets is deemed to be in line with the year-earlier period.

Nobia

The negative organic sales trend was primarily attributable to weak order intake in France during the first quarter of the year, which resulted in declining sales in the second quarter. In other areas of the region, underlying sales were in line with the year-earlier period.

Intensive efforts to stabilise the situation in Hygena were carried out in the quarter. Significant progress was made in the areas of IT and logistics. Accordingly, the stores are no longer limited by the shortcomings of the system environment.

Costs for restructuring work amounted to SEK 21 million, and additional expenses are expected to be charged to future quarters before the adjustments are fully completed.

The gross margin weakened to 38.5 per cent (39.3).

The decline in earnings for the quarter was mainly due to weaker sales in Hygena and, to a certain extent, Poggenpohl, but was offset by the implementation of price increases and a more favourable sales mix.

Quarterly data in SEK

	2010		2009
	II	I	IV	III	II	I
Net sales, SEK m	1,040	967	1,082	1,170	1,325	1,048
Gross profit excluding restructuring costs, SEK m	400	358	419	466	521	364
Gross margin excluding restructuring costs, %	38.5	37.0	38.7	39.8	39.3	34.7
Operating profit/loss excluding restructuring costs, SEK m	10	–60	13	47	24	–58
Operating margin excluding restructuring costs, %	1.0	–6.2	1.2	4.0	1.8	–5.5
Operating profit/loss, SEK m	–11	–84	–5	33	19	–67
Operating margin, %	–1.1	–8.7	–0.5	2.8	1.4	–6.4

Store trend, April–June

Refurbished or relocated	0
Newly opened, net	–1
Number of stores	191
of which franchise	1
of which Group-owned	190

Consolidated earnings, cash flow and financial position January–June 2010

Sales for the first six months declined to SEK 7,252 million (8,068), mostly due to currency translation effects. Organic growth was negative 2 per cent. Profit was charged with restructuring costs of SEK 154 million (268). Operating profit before restructuring costs amounted to SEK 171 million (73). The loss after tax and restructuring costs was SEK 21 million (loss: 220), corresponding to a loss per share of SEK 0.13 (loss: 1.32). Operating cash flow amounted to SEK 261 million (597).

Nobia's sales trend during the first half of the year was negative as a result of negative translation effects of SEK 567 million (pos: 689) and lower volumes.

The gross margin excluding restructuring costs amounted to 38.5 per cent (35.5).

The positive earnings trend compared with the year-earlier period was attributable to the implementation of price increases, a more favourable sales mix and lower costs. Restructuring costs of SEK 154 million (268) had a negative impact on operating profit.

The negative currency effect of SEK 10 million comprised transaction effects.

Net financial items amounted to an expense of SEK 42 million (neg: 49). Net financial items include the net of return on pension assets and interest expense for pension liabilities corresponding to SEK 19 million (expense: 21).

Net interest amounted to an expense of SEK 10 million (expense: 39).

The loss per share including restructuring costs amounted to SEK 0.13 (loss: 1.32).

The return on capital employed was 4.2 per cent (1.0 for fullyear 2009) and return on shareholders' equity amounted to 3.1

Net sales and profit/loss per region (operating segment)

per cent (neg: 1.9 for full-year 2009), including restructuring costs for the most recent 12-month period.

Nobia's investments in fixed assets amounted to SEK 162 million (143), of which SEK 44 million (86) pertained to store investments.

Goodwill at the end of the period amounted to SEK 2,875 million (3,214), corresponding to 76 per cent (79) of the Group's shareholders' equity.

Net debt including pension provisions declined by SEK 530 million during the period and amounted to SEK 1,896 million (2,769). The debt/equity ratio amounted to 50 per cent (68) at the end of the period.

During the period, Nobia continued to amortise its loans, which explains the lower interest expense and reduced net debt.

Nobia has signed an agreement for a new long-term loan with a consortium of banks. The loan extends for five years and may amount to a maximum of SEK 2,000 million. Added to this is the loan of SEK 800 million from Svensk Exportkredit that was recognised in the first quarter. Nobia's long-term credit framework thus amounts to SEK 2,800 million.

	UK Jan–Jun		Nordic Jan–Jun		Continental Europe Jan–Jun		Other and Group adjustments Apr–Jun			Group Jan–Jun
SEK m	2010	2009	2010	2009	2010	2009	2010	2009	2010	2009	Change, %
Net sales from external customers	2,644	2,863	2,609	2,893	1,999	2,312	–	–	7,252	8,068	–10
Net sales from other regions	–	–	–	–	8	61	–8	–61	–	–	–
Total net sales	2,644	2,863	2,609	2,893	2,007	2,373	–8	–61	7,252	8,068	–10
Gross profit/loss excluding restructuring costs	1,016	986	998	1,013	758	885	17	–19	2,789	2,865	–
Gross margin excluding restructuring costs, %	38.4	34.4	38.3	35.0	37.8	37.3	–	–	38.5	35.5	–
Operating profit/loss excluding restructuring costs	139	57	132	108	–50	–34	–50	–58	171	73	–
Operating margin excluding restructuring costs, %	5.3	2.0	5.1	3.7	–2.5	–1.4	–	–	2.4	0.9	–
Operating profit/loss	130	57	132	–146	–95	–48	–150	–58	17	–195	–
Operating margin, %	4.9	2.0	5.1	–5.0	–4.7	–2.0	–	–	0.2	–2.4	–
Financial items	–	–	–	–	–	–	–	–	–42	–49	–
Profit/loss after financial items, SEK m	–	–	–	–	–	–	–	–	–25	–244	–

Restructuring measures in progress

Restructuring costs for the January to June period totalled SEK 154 million (268). This includes the loss of SEK 72 million in the divestment of Culinoma and Pronorm in the first quarter.

The restructuring costs for the period pertaining to the French company Hygena amounted to SEK 73 million (8) and for the reorganisation of the UK company Magnet to SEK 9 million (–).

Structural measures in Hygena and Magnet amounting to SEK 51 million were charged against the cash flow. Prior years' structural measures impacted the period's cash flow by approximately negative SEK 26 million.

Divested operations and fixed assets for sale

In 2008 and 2009, Nobia acquired a total of ten stores from franchisees in Denmark with the intention of selling these onward. Two of these stores were sold onward in 2009. An additional four stores were acquired during the first half of 2010 and four were sold onward. The stores sold onward in 2010 generated a capital gain of SEK 11 million. At the end of the first six months of 2010, Nobia in Denmark had a total of eight stores, which were reported as discontinued operations and divestment group held for sale, in accordance with IFRS 5, and reported in the Nordic operating segment.

Profit from the stores for the period January–June 2010 amounted to SEK 3 million (loss: 15), including capital gains of SEK 11 million.

Nobia intends to divest one production property in Denmark in 2010. The property is recognised in accordance with IFRS 5 under assets held for sale in the Nordic operating segment.

Company acquisitions and divestments

During the first quarter of 2010, Nobia divested its German subsidiary Pronorm and its 50-per cent ownership share in Culinoma. The divestment generated an accounting loss of SEK 72 million and positive cash flow of SEK 491 million. No further divestments occurred during the second quarter of 2010.

Pronorm's share of the Nobia Group's net sales amounted to nearly 2 per cent during the first half of 2009.

No corporate acquisitions were made during the first half of 2010.

Personnel

The number of employees at the end of the period amounted to 7,920 (8,553). The decrease was due to adjustments of production capacity. The average number of employees during the interim period was 7,502 (8,161).

Related-party transactions, Parent Company

The Parent Company invoiced Group-wide services to subsidiaries in an amount of SEK 1 million (–) during the January – June period.

Significant risks for the Group and Parent Company

Nobia is exposed to strategic, operating and financial risks. The trend in the kitchen market during the first half of 2010 remained weak. For the Group, this means continued low levels for production and deliveries. Nobia continues to capitalise on synergies and economies of scale by harmonising product lines, co-ordinating production and enhancing purchasing efficiency.

For a more detailed description of risks and risk management, refer to pages 26-27 of Nobia's 2009 Annual Report.

Accounting policies

This interim report has been prepared in accordance with IFRS, with the application of IAS 34 Interim Financial Reporting. For the Parent Company, accounting policies are applied in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which concur with the provisions of recommendation RFR 2.3.

In this interim report, Nobia has applied the same accounting policies as were applied as in the 2009 Annual Report, except for the new policies stated below.

New accounting policies 2010

Revised IFRS 3 Business Combinations and the amended IAS 27 Consolidated and Separate Financial Statements are applied effective 1 January 2010. The change includes the following adjustments: definitions of operations are changed, transaction costs attributable to business combinations are to be expensed, conditional purchase considerations are to be determined at fair value on the acquisition date and the effects of remeasuring liabilities related to conditional purchase considerations are to be recognised as income or an expense in net profit for the year. Another new feature is the introduction of two alternative methods for recognising minority interests and goodwill, either at fair value, meaning that goodwill is included in the minority interest, or the minority interest comprising a portion of net assets. The selection of these two methods will be made individually on an acquisition by acquisition basis. Furthermore, additional transactions occurring after a controlling influence has been obtained are considered to be a transaction with others and should be recognised in shareholders' equity, which is a change to Nobia's former policy of recognising surplus amounts as goodwill.

Relevant components of the changes will be applied prospectively and, since Nobia did not make any acquisitions during the period, the above amended policies have not yet impacted Nobia's financial statements.

For further information

Please contact any of the following on +46 (0) 8 440 16 00 or +46 (0) 708 65 59 00:

• Preben Bager, President and CEO
• Mikael Norman, CFO
• Ingrid Yllmark, IRO

Presentation

The interim report will be presented on Monday, 19 July 2010 at 2:00 p.m. CET in a teleconference that can be followed on Nobia's website. To participate in the teleconference, call one of the following numbers:

• Sweden +46 (0)8 505 202 70
• UK +44 (0) 207 509 5139
• US +1 718 354 1226.

Next report

The next reports will be published on 22 October 2010 and then on 11 February 2011.

The Board of Directors and CEO assure that the six-month report provides a fair view of the Parent Company's and the Group's operations, financial position and profits, as well as describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, 19 July 2010

Hans Larsson Chairman

Johan Molin Bodil Eriksson Thore Ohlsson Deputy Chairman

Fredrik Palmstierna Lotta Stalin Rolf Eriksen Stefan Dahlbo

Per Bergström Olof Harrius

Employee representative Employee representative

Preben Bager President and CEO

This interim report is unaudited

Nobia AB Corporate Registration Number 556528-2752

The information in this interim report is such that Nobia AB (publ) is obliged to publish in accordance with the Swedish Securities Market Act. The information was released to the media for publication on 19 July at 1:00 p.m. CET.

Box 70376 • SE-107 24 Stockholm, Sweden • Visiting address: Klarabergsviadukten 70 A5 • Tel +46 8 440 16 00 • Fax +46 8503 826 49 • www.nobia.com Corporate Registration Number: 556528-2752 • The registered office of the Board of Directors is in Stockholm, Sweden

Consolidated income statement

	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
Net sales	3,796	4,291	7,252	8,068	14,602	15,418
Cost of goods sold	–2,307	–2,742	–4,502	–5,396	–9,082	–9,976
Gross profit	1,489	1,549	2,750	2,672	5,520	5,442
Selling and administrative expenses	–1,303	–1,448	–2,676	–2,862	–5,296	–5,482
Other income/expenses	–21	–27	–49	3	28	80
Share in profit of associated companies	0	3	–8	–8	–2	–2
Operating profit/loss	165	77	17	–195	250	38
Net financial items	–17	–22	–42	–49	–68	–75
Profit/loss after financial items	148	55	–25	–244	182	–37
Tax	–31	–16	1	39	–3	35
Profit/loss after tax from continuing operations	117	39	–24	–205	179	–2
Gain/loss from divested operations, net after tax	–4	0	3	–15	–59	–77
Profit/loss after tax	113	39	–21	–220	120	–79
Profit/loss after tax attributable to:
Parent Company shareholders	113	39	–21	–220	120	–79
Minority interests	0	0	0	0	0	0
Profit/loss after tax	113	39	–21	–220	120	–79
Total depreciation	113	133	230	266	483	519
Total impairment Gross margin, %	– 39.2	19 36.1	46 37.9	95 33.1	34 37.8	83 35.3
Operating margin, %	4.3	1.8	0.2	–2.4	1.7	0.2
Return on capital employed, %	–	–	–	–	4.2	1.0
Return on shareholders' equity, %	–	–	–	–	3.1	–1.9
Earnings per share, before dilution, SEK1)	0.68	0.23	–0.13	–1.32	0.72	–0.47
Earnings per share, after dilution, SEK1)	0.68	0.23	–0.13	–1.32	0.72	–0.47
Number of shares at end of period before dilution, 000s2)	167,131	167,131	167,131	167,131	167,131	167,131
Average number of shares before dilution, 000s2)	167,131	167,131	167,131	167,131	167,131	167,131
Number of shares after dilution at end of period, 000s2)	167,131	167,131	167,131	167,131	167,131	167,131
Average number of shares after dilution, 000s2)	167,131	167,131	167,131	167,131	167,131	167,131

1) Earnings per share attributable to the Parent Company's shareholders.

2) Excluding treasury shares.

Consolidated statement of comprehensive income

	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
Profit/loss after tax	113	39	–21	–220	120	–79
Other comprehensive income
Exchange-rate differences attributable to translation
of foreign operations	72	105	–121	229	–427	–77
Cash-flow hedges before tax	–12	–18	–12	–77	–3	–68
Tax attributable to change in hedging reserve for the period	3	8	3	22	0	19
Other comprehensive income	63	95	–130	174	–430	–126
Total comprehensive profit/loss	176	134	–151	–46	–310	–205
Total comprehensive income attributable to:
Parent Company shareholders	176	134	–151	–46	–310	–205
Minority interests	0	0	0	0	0	0
Total comprehensive profit/loss	176	134	–151	–46	–310	–205

Specification of restructuring costs

Restructuring costs per function	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
Cost of goods sold	–13	–28	–39	–193	–66	–220
Selling and administrative expenses	–17	–2	–89	–66	–112	–89
Other income/expenses	–	–	–26	–9	–16	1
Total restructuring costs	–30	–30	–154	–268	–194	–308

Restructuring costs per region	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
UK	–9	–	–9	–	–9	–
Nordic region	–	–25	–	–254	–8	–262
Continental Europe	–21	–5	–451)	–14	–772)	–46
Other and Group adjustments	–	–	–1003)	–	–1003)	–
Group	–30	–30	–154	–268	–194	–308

1) Pertains to gains of SEK 28 million from the divestment of Culinoma and Pronorm and restructuring costs of SEK 73 million in Hygena.

2) Pertains primarily to restructuring costs in Hygena of SEK 115 million and gains from the divestment of Culinoma and Pronorm.

3) Pertains entirely to losses from the divestment of Culinoma and Pronorm.

Consolidated balance sheet

	30 Jun		31 Dec
SEK m	2010	2009	2009
ASSETS
Goodwill	2,875	3,214	3,037
Other intangible fixed assets	171	119	171
Tangible fixed assets	2,5701)	3,283	2,924
Long-term receivables	712)	432	416
Participations in associated companies	–	52	58
Deferred tax assets	370	363	293
Total fixed assets	6,057	7,463	6,899
Inventories	1,106	1,436	1,212
Accounts receivable	1,609	1,897	1,441
Other receivables	377	411	445
Total current receivables	1,986	2,308	1,886
Cash and cash equivalents	247	400	384
Assets held for sale	80	95	75
Total current assets	3,419	4,239	3,557
Total assets	9,476	11,702	10,456
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	58	58	58
Other capital contributions	1,449	1,449	1,449
Reserves	–110	320	20
Profit brought forward	2,380	2,259	2,401
Total shareholders' equity attributable to Parent Company shareholders	3,777	4,086	3,928
Minority interests	6	6	6
Total shareholders' equity	3,783	4,092	3,934
Provisions for pensions	655	752	656
Other provisions	176	249	190
Deferred tax liabilities	197	244	225
Other long-term liabilities, interest-bearing	1,3983)	2,727	2,456
Total long-term liabilities	2,426	3,972	3,527
Current liabilities, interest-bearing	108	58	50
Current liabilities, non-interest-bearing Liabilities attributable to assets held for sale	3,095	3,546	2,905
	64	34 3,638	40 2,995
Total current liabilities	3,267

Equity/assets ratio, %	40	35	38
Debt/equity ratio, %	50	68	62
Net debt, SEK m	1,896	2,769	2,426
Capital employed, closing balance, SEK m	5,944	7,629	7,095

1) The change between January and June 2010 is mainly attributable to the divestment of Pronorm and exchange-rate differences on translation. 2) The change between January and June 2010 is mainly attributable to repayment of receivables in Culinoma in conjunction with divestment.

3) The change between January and June 2010 is mainly attributable to loan repayments.

Statement of changes in consolidated shareholders' equity

			Attributable to Parent Company shareholders
			Exchange-rate differences attributable to					Total share
		Other	translation	Cash-flow	Profit			hold
	Share capital	capital contributions	of foreign operations	hedges after tax	brought forward	Total	Minority interests	ers' equity
Opening balance, 1 January 2009	58	1,449	101	45	2,495	4,148	6	4,154
Total comprehensive income for the period	–	–	229	–55	–220	–46	0	–46
Change in minority interests in associated
companies	–	–	–	–	–16	–16	–	–16
Closing balance, 30 June 2009	58	1,449	330	–10	2,259	4,086	6	4,092
Opening balance, 1 January 2010	58	1,449	24	–4	2,401	3,928	6	3,934
Total comprehensive loss for the period	–	–	–121	–9	–21	–151	0	–151
Allocation of employee share option scheme	–	0	–	–	–	0	–	0
Closing balance, 30 June 2010	58	1,449	–97	–13	2,380	3,777	6	3,783

Consolidated cash-flow statement

	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
Operating activities
Operating profit/loss	165	77	17	–195	250	38
Depreciation/Impairment	113	1523)	2761)	3612)	517	6024)
Adjustments for non-cash items	18	53	50	156	–74	32
Tax paid	–16	–31	–5	–67	–22	–84
Change in working capital	114	258	58	463	68	473
Cash flow from operating activities	394	509	396	718	739	1,061
Investing activities
Investments in fixed assets	–86	–66	–162	–143	–365	–346
Other items in investing activities	2	13	27	22	93	88
Acquisition of companies	–	–1	–	–28	–36	–64
Divestment of companies	–	–	491	–	491	–
Cash flow from investing activities	–84	–54	356	–149	183	–322
Operating cash flow before acquisition/divestment of companies	310	456	261	597	467	803
Operating cash flow after acquisition/divestment of companies	310	455	752	569	922	739
Financing activities
Interest paid	–6	–28	–10	–42	–20	–52
Change in interest-bearing assets	–1	–8	–1	–25	37	13
Change in interest-bearing liabilities	–323	–431	–8675)	–4446)	–1,061	–6387)
Dividend	–	–	–	–	0	0
Cash flow from financing activities	–330	–467	–878	–511	–1,044	–677
Cash flow for the period excluding exchange-rate differences in
cash and cash equivalents	–20	–12	–126	58	–122	62
Cash and cash equivalents at beginning of the period	264	409	384	332	400	332
Cash flow for the period	–20	–12	–126	58	–122	62
Exchange-rate differences in cash and cash equivalents	3	3	–11	10	–31	–10
Cash and cash equivalents at period-end	247	400	247	400	247	384

1) Impairment amounted to SEK 46 million and pertained to goodwill in Pronorm.

2) Impairment amounted to SEK 95 million, of which buildings accounted for SEK 43 million, machinery SEK 46 million and kitchen displays for SEK 6 million.

3) Impairment amounted to SEK 19 million, which pertained entirely to machinery.

4) Impairment amounted to SEK 83 million, of which buildings accounted for SEK 51 million, machinery for SEK 25 million, kitchen displays for SEK 5 million and inventories for SEK 2 million.

5) Loan repayments totalling SEK 1,700 million were made and new loans were raised totalling SEK 800 million during the January to June period.

6) Loan repayments totalling SEK 400 million were made in the January-June period.

7) Loan repayments totalling SEK 551 were made during the January to December period.

Analysis of net debt		Apr–Jun	Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
Opening balance	2,204	3,132	2,426	3,181	2,769	3,181
Translation differences	1	57	–114	96	–270	–60
Operating cash flow	–310	–456	–261	–597	–467	–803
Interest paid	6	29	10	43	19	52
Acquisition of companies	–	0	–	30	39	69
Divestment of companies	–	–	–160	–	–160	–
Change in pension liabilities	–5	7	–5	16	–34	–13
Dividend	–	–	–	–	0	0
Closing balance	1,896	2,769	1,896	2,769	1,896	2,426

Parent Company income statement	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
Net sales	13	8	25	17	61	53
Administrative expenses	–28	–19	–51	–35	–90	–74
Other income/expenses	–	–	–33	–	–33	–
Operating loss	–15	–11	–59	–18	–62	–21
Divestment of participations in associated companies	0	–	–	–	–	–
Profit from shares in Group companies	–	–	–	–	22	22
Other financial income and expenses	–8	–9	–16	–7	–8	1
Profit/loss after financial items	–23	–20	–75	–25	–48	2
Tax on profit for the period	–	0	–	0	4	4
Profit/loss for the period	–23	–20	–75	–25	–44	6
Parent Company balance sheet					30 Jun	31 Dec
SEK m				2010	2009	2009
ASSETS
Fixed assets
Shares and participations in Group companies				1,379	1,379	1,379
Other investments held as fixed assets				3	–	2
Associated companies				–	57	57
Total fixed assets				1,382	1,436	1,438
Current assets
Current receivables
Accounts receivable				3	12	3
Receivables from Group companies				3,387	3,126	2,097
Receivables from associated companies				–	348	332
Other receivables				4	6	3
Prepaid expenses and accrued income				17	20	26
Cash and cash equivalents				79	178	170
Total current assets				3,490	3,690	2,631
Total assets				4,872	5,126	4,069
SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES
Shareholders' equity
Restricted shareholders' equity
Share capital				58	58	58
Statutory reserve				1,671	1,671	1,671
				1,729	1,729	1,729
Non-restricted shareholders' equity
Share premium reserve				52	52	52
Buy-back of shares				–468	–468	–468
Profit brought forward				2,173	2,153	2,155
Profit for the year				–	–25	6
				1,682	1,712	1,745
Total shareholders' equity				3,411	3,441	3,474
Provisions for pensions				9	6	7
Noncurrent liabilities
Liabilities to credit institutes				800	–	–
Current liabilities
Liabilities to credit institutes				102	50	41
Accounts payable				7	12	5
Liabilities to Group companies				529	1,597	521
Other liabilities				1	7	4
Accrued expenses and deferred income				13	13	17
Total current liabilities				652	1,679	588
Total shareholders' equity, provisions and liabilities				4,872	5,126	4,069
Pledged assets				3	1	2
Contingent liabilities				844	3,522	2,698

Interim Report Q2 • 2010Q2 Comparative data by region

Net sales		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
UK	1,360	1,494	2,644	2,863	5,404	5,623
Nordic	1,401	1,499	2,609	2,893	4,950	5,234
Continental Europe	1,040	1,325	2,007	2,373	4,259	4,625
Other and Group adjustments	–5	–27	–8	–61	–11	–64
Group	3,796	4,291	7,252	8,068	14,602	15,418
Gross profit excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
UK	543	532	1,016	986	2,030	2,000
Nordic	550	542	998	1,013	1,846	1,861
Continental Europe	400	521	758	885	1,643	1,770
Other and Group adjustments	9	–18	17	–19	67	31
Group	1,502	1,577	2,789	2,865	5,586	5,662
Gross margin excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
%	2010	2009	2010	2009	2009/10	2009
UK	39.9	35.6	38.4	34.4	37.6	35.6
Nordic Continental Europe	39.3 38.5	36.2 39.3	38.3 37.8	35.0 37.3	37.3 38.6	35.6 38.3
Group	39.6	36.8	38.5	35.5	38.3	36.7
Operating profit/loss excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
UK	98	26	139	57	318	236
Nordic	115	91	132	108	211	187
Continental Europe Other and Group adjustments	10 –28	24 –34	–50 –50	–34 –58	10 –95	26 –103
Group	195	107	171	73	444	346
Operating margin excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
%	2010	2009	2010	2009	2009/10	2009
UK	7.2	1.7	5.3	2.0	5.9	4.2
Nordic	8.2	6.1	5.1	3.7	4.3	3.6
Continental Europe Group	1.0 5.1	1.8 2.5	–2.5 2.4	–1.4 0.9	0.2 3.0	0.6 2.2
Operating profit/loss		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2009	2010	2009	2009/10	2009
UK	89	26	130	57	309	236
Nordic	115	66	132	–146	203	–75
Continental Europe	–11	19	–95	–48	–67	–20
Other and Group adjustments Group	–28 165	–34 77	–150 17	–58 –195	–195 250	–103 38
Operating margin		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
%	2010	2009	2010	2009	2009/10	2009
UK	6.5	1.7	4.9	2.0	5.7	4.2
Nordic Continental Europe	8.2 –1.1	4.4 1.4	5.1 –4.7	–5.0 –2.0	4.1 –1.6	–1.4 –0.4
Group	4.3	1.8	0.2	–2.4	1.7	0.2

Interim Report Q2 • 2010Q2 Quarterly data by region

Net sales		2010		2009
SEK m	II	I	IV	III	II	I
UK	1,360	1,284	1,399	1,361	1,494	1,369
Nordic	1,401	1,208	1,302	1,039	1,499	1,394
Continental Europe	1,040	967	1,082	1,170	1,325	1,048
Other and Group adjustments	–5	–3	–1	–2	–27	–34
Group	3,796	3,456	3,782	3,568	4,291	3,777
Gross profit excluding restructuring costs		2010	2009
SEK m	II	I	IV	III	II	I
UK	543	473	522	492	532	454
Nordic	550	448	481	367	542	471
Continental Europe	400	358	419	466	521	364
Other and Group adjustments	9	8	40	10	–18	–1
Group	1,502	1,287	1,462	1,335	1,577	1,288
Gross margin excluding restructuring costs		2010	2009
%	II	I	IV	III	II	I

Group	39.6	37.2	38.7	37.4	36.8	34.1
Continental Europe	38.5	37.0	38.7	39.8	39.3	34.7
Nordic	39.3	37.1	36.9	35.3	36.2	33.8
UK	39.9	36.8	37.3	36.1	35.6	33.2

Operating profit/loss excluding restructuring costs	2010		2009
SEK m	II	I	IV	III	II	I
UK	98	41	114	65	26	31
Nordic	115	17	64	15	91	17
Continental Europe	10	–60	13	47	24	–58
Other and Group adjustments	–28	–22	–25	–20	–34	–24
Group	195	–24	166	107	107	–34

Operating margin excluding restructuring costs		2010			2009
%	II	I	IV	III	II	I
UK	7.2	3.2	8.1	4.8	1.7	2.3
Nordic	8.2	1.4	4.9	1.4	6.1	1.2
Continental Europe	1.0	–6.2	1.2	4.0	1.8	–5.5
Group	5.1	–0.7	4.4	3.0	2.5	–0.9

Operating profit/loss		2010	2009
SEK m	II	I	IV	III	II	I
UK	89	41	114	65	26	31
Nordic	115	17	56	15	66	–212
Continental Europe	–11	–84	–5	33	19	–67
Other and Group adjustments	–28	–122	–25	–20	–34	–24
Group	165	–148	140	93	77	–272

Operating margin		2010			2009
%	II	I	IV	III	II	I
UK	6.5	3.2	8.1	4.8	1.7	2.3
Nordic	8.2	1.4	4.3	1.4	4.4	–15.2
Continental Europe	–1.1	–8.7	–0.5	2.8	1.4	–6.4
Group	4.3	–4.3	3.7	2.6	1.8	–7.2

Definitions of key figures

Capital employed

Total assets less non-interest-bearing provisions and liabilities.

Debt/equity ratio

Net debt as a percentage of shareholders' equity, including minority interests.

Earnings per share

Profit for the period divided by a weighted average number of outstanding shares during the year.

EBITDA

Profit before depreciation and impairment.

Equity/assets ratio

Equity including minority interests as a percentage of total assets.

Gross margin

Gross profit as a percentage of net sales.

Net debt

Total of interest-bearing liabilities and interest-bearing provisions less interest-bearing assets. Interest-bearing provisions refer to pension liabilities.

Operating cash flow

Cash flow from operating activities including cash flow from investing activities, excluding cash flow from acquisitions/ divestments of subsidiaries.

Operating margin

Operating profit as a percentage of net sales.

Region

Region corresponds to operating segment in accordance with IFRS 8.

Return on capital employed

Profit after financial revenue as a percentage of average capital employed. The calculation of average capital employed has been adjusted for acquisitions and divestments.

Return on shareholders' equity

Profit for the period as a percentage of average shareholders' equity. The calculation of average shareholders' equity has been adjusted for increases and decreases in capital.