Nobia

Interim / Quarterly Report • Jul 19, 2011

Interim Report Q2 ⁿ 2011

Stronger margins in a weakened market

(All !gures in brackets refer to the corresponding period in 2010)

Net sales for the second quarter amounted to SEK 3,559 million (3,796). Organic growth totalled 1 per cent (neg: 3). Operating pro!t excluding restructuring costs of net SEK 24 million (30) amounted to SEK 241 million (195), corresponding to an operating margin of SEK 6.8 per cent (5.1). Pro!t after tax and including restructuring costs totalled SEK 137 million (113), corresponding to earnings per share of SEK 0.82 (0.68). Operating cash "ow amounted to SEK 96 million (310).

The Nordic market continued to display a positive trend, while the trend for other markets was negative.

Negative currency e"ects of SEK 272 million (neg: 315) impacted net sales for the quarter. Organic growth boosted net sales by SEK 35 million (neg: 109) and was primarily attributable to the Nordic project market.

Operating pro!t excluding restructuring costs amounted to SEK 241 million (195), corresponding to an operating margin of 6.8 per cent (5.1).

Currency e"ects contributed approximately SEK 10 million (neg: 5) to operating pro!t excluding restructuring costs, of which negative SEK 20 million (neg: 15) in translation e"ects and positive SEK 30 million (10) in transaction e"ects.

The stronger earnings trend was mainly attributable to price increases implemented in the Nordic and Continental Europe regions, an improved sales mix and cost savings.

Return on capital employed including restructuring costs was 5.0 per cent (4.2) over the past twelve-month period.

Operating cash #ow was negatively impacted, primarily by lower prepayments in the UK and France.

Comments from the CEO

"Given the continued weak market situation, I believe that we have posted an acceptable result for the UK. It is also positive that we have succeeded in improving our pro!tability in both the Continental Europe and Nordic regions. However, because we recently noted that the French market had weakened, we have decided to accelerate the rate of refurbishment of Hygena's store network; a measure that will impact future quarters' sales and earnings !gures. We are continuing to closely monitor market trends in all regions and adjust our cost base accordingly," says Morten Falkenberg, President and CEO.

		Apr–Jun			Jan–Jun		Jul–Jun	Jan–Dec
Nobia Group summary	2010	2011	Change, %	2010	2011	Change, %	2010/2011	2010
Net sales, SEK m	3,796	3,559	–6	7,252	6,766	–7	13,599	14,085
Gross margin, %	39.6	40.0	–	38.5	39.4	–	39.6	39.1
Operating margin before depreciation and impairment, % (EBITDA)	8.1	9.4	–	5.5	7.6	–	7.9	6.9
Operating pro!t, SEK m (EBIT)	195	241	24	171	312	82	658	517
Operating margin, %	5.1	6.8	–	2.4	4.6	–	4.8	3.7
Pro!t after !nancial items, SEK m	178	219	23	129	269	109	572	432
Pro!t/loss after tax, SEK m	113	137	21	–21	167	–	99	–89
Earnings/loss per share, after dilution, SEK	0.68	0.82	21	–0.13	1.00	–	0.59	–0.53
Operating cash #ow, SEK m	310	96	–69	261	12	–95	392	641

All !gures except "Net sales", "Pro!t after tax", "Earnings/loss per share" and "Operating cash #ow" have been adjusted for restructuring costs. Further information about restructuring costs is available on pages 3–5, 7 and 10.

Net sales and operating margin

Net sales amounted to SEK 3,559 million and the operating margin was 6.8 per cent.

Pro!tability trend

Return on capital employed was 5.0 per cent over the past twelve-month period.

Earnings per share

Earnings per share after dilution amounted to SEK 0.59 over the past twelve-month period.

Analysis of net sales and regional reporting

Negative currency e#ects of SEK 272 million (neg: 315) impacted net sales for the quarter. Organic growth remained negative in the UK region but was positive in the Continental Europe and Nordic regions, and totalled 1 per cent (neg: 3).

Analysis of net sales	Apr–Jun		Jan–Jun
	%	SEK m	%	SEK m
2010		3,796		7,252
Organic growth	1	35	2	118
– of which UK region1)	–8	–103	–6	–155
– of which Nordic region1)	8	108	11	276
– of which Continental Europe region1)	3	28	0	–4
Currency e"ect	–7	–272	–8	–558
Discounted units2)	–	–	–1	–46
2011	–6	3,559	–7	6,766

1) Organic growth for each region. 2) "Discounted units" refers to Pronorm.

Net sales and pro!t/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	2011	2010	2011	2010	2011	2010	2011	2010	2011	Change, %
Net sales	1,360	1,137	1,401	1,432	1,040	993	–5	–3	3,796	3,559	–6
Gross pro!t excluding restructuring costs	543	430	550	553	400	414	9	27	1,502	1,424	–5
Gross margin excluding restructuring costs, %	39.9	37.8	39.3	38.6	38.5	41.7	–	–	39.6	40.0	–
Operating pro!t/loss excluding restructuring costs	98	57	115	159	10	41	–28	–16	195	241	24
Operating margin excluding restructuring costs, %	7.2	5.0	8.2	11.1	1.0	4.1	–	–	5.1	6.8	–
Operating pro!t/loss	89	52	115	148	–11	36	–28	–19	165	217	32
Operating margin, %	6.5	4.6	8.2	10.3	–1.1	3.6	–	–	4.3	6.1	–

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, Myresjökök in Scandinavia and Petra, Parma and A la Carte in Finland, EWE, Intuo and FM in Austria, Opti!t in Germany, as well as Poggenpohl globally.

Nobia generates pro!tability by combining economies of scale with attractive kitchen o"erings. The Group has approximately 7,500 employees and had net sales of about SEK 14 billion in 2010. The Nobia share is listed on the NASDAQ OMX Stockholm under the short name NOBI. Website: www.nobia.com. Read more about the company under "About Nobia." Financial information is presented under "Investor."

UK region

Net sales for the second quarter amounted to SEK 1,137 million (1,360). Organic growth was negative 8 per cent (neg: 1). Restructuring costs of net SEK 5 million (9) were charged to operating pro!t for the quarter. Operating pro!t excluding restructuring costs amounted to SEK 57 million (98) and the operating margin was 5.0 per cent (7.2). The currency e#ect of about SEK 10 million (neg: 10) on operating pro!t comprised a negative translation e#ect of SEK 5 million and a positive transaction e#ect of SEK 15 million.

Kitchen market

Demand in the UK kitchen market is deemed to have weakened compared with the same quarter in the preceding year.

Nobia

The negative sales trend was caused by weaker demand levels and led to a decline in kitchen sales to both end consumers and professional customers. However, sales of accessories in Magnet Trade increased somewhat.

Negative currency e"ects of approximately SEK 120 million (neg: 118) had an adverse e"ect on net sales for the quarter.

Due to lower volumes, higher raw material prices and a changed sales mix, the gross margin weakened by about 2 percentage points compared with the year-earlier period.

The e"ects of the negative volume trend were partly o"set by lower costs.

Restructuring costs for the period pertain to rationalisation measures. Measured in local currency, operating pro!t for the region totalled GBP 5.6 million (8.8).

Quarterly data in SEK

		2010		2011
	I	II	III	IV	I	II
Net sales, SEK m	1,284	1,360	1,263	1,291	1,142	1,137
Gross pro!t excluding restructuring costs, SEK m	473	543	507	506	442	430
Gross margin excluding restructuring costs, %	36.8	39.9	40.1	39.2	38.7	37.8
Operating pro!t excluding restructuring costs, SEK m	41	98	101	86	54	57
Operating margin excluding restructuring costs, %	3.2	7.2	8.0	6.7	4.7	5.0
Operating pro!t/loss, SEK m	41	89	94	–5	54	52
Operating margin, %	3.2	6.5	7.4	–0.4	4.7	4.6

Quarterly data in GBP

		2010
	I	II	III	IV	I	II
Net sales, GBP m	114.6	120.4	112	120.2	110.0	111.2
Gross pro!t excluding restructuring costs, GBP m	42.2	48.1	45.0	47.1	42.5	42.2
Gross margin excluding restructuring costs, %	36.8	40.0	40.1	39.2	38.6	37.9
Operating pro!t excluding restructuring costs, GBP m	3.6	8.8	9.0	7.9	5.2	5.6
Operating margin excluding restructuring costs, %	3.1	7.3	8.0	6.6	4.7	5.0
Operating pro!t/loss, GBP m	3.6	7.9	8.3	–0.2	5.2	5.1
Operating margin, %	3.1	6.6	7.4	–0.2	4.7	4.6

Store trend, April–June
Refurbished or relocated	0
Newly opened, net	0
Number of kitchen stores (Group-owned)	212

Percentage of consolidated net sales, second quarter, %

Our brands

Nordic region

Net sales for the second quarter amounted to SEK 1,432 million (1,401). Organic growth was 8 per cent (neg: 3). Restructuring costs of net SEK 11 million (–) were charged to operating pro!t for the quarter. Excluding these costs, operating pro!t totalled SEK 159 million (115) and the operating margin strengthened to 11.1 per cent (8.2). The currency e#ect of about SEK 0 million (10) on operating pro!t excluding restructuring costs comprised a negative translation e#ect of SEK 10 million and a positive transaction e#ect of SEK 10 million.

Kitchen market

Demand is deemed to have improved compared with the corresponding period in the preceding year, which is mainly attributable to a higher level of activity in new-builds.

Nobia

Organic sales growth was primarily attributable to positive volume growth in the project segment. Sales increased in all Nordic counties.

Negative currency e"ects of approximately SEK 77 million (neg: 87) had an adverse impact on net sales for the quarter.

The gross margin weakened as a result of the shift in the mix towards more project sales.

In addition to volume growth, e"ects of price increases contributed to the improvement in the region's earnings.

The restructuring costs for the period mainly derived from the relocation of kitchen production from Älmhult to Tidaholm in Sweden.

Quarterly data in SEK

		2010		2011
	I	II	III	IV	I	II
Net sales, SEK m	1,208	1,401	1,091	1,392	1,270	1,432
Gross pro!t excluding restructuring costs, SEK m	448	550	418	529	466	553
Gross margin excluding restructuring costs, %	37.1	39.3	38.3	38.0	36.7	38.6
Operating pro!t excluding restructuring costs, SEK m	17	115	63	136	75	159
Operating margin excluding restructuring costs, %	1.4	8.2	5.8	9.8	5.9	11.1
Operating pro!t, SEK m	17	115	15	102	69	148
Operating margin, %	1.4	8.2	1.4	7.3	5.4	10.3

Store trend, April–June
Refurbished or relocated	–
Newly opened, net	–14
Number of stores	270
of which franchise	183
of which Group-owned	87

Percentage of consolidated net sales, second quarter, %

Continental Europe region

Net sales for the second quarter amounted to SEK 993 million (1,040). Organic growth was 3 per cent (neg: 6). Restructuring costs of SEK 5 million (21) were charged to operating pro!t for the quarter. Excluding these costs, operating pro!t for the quarter totalled SEK 41 million (10). The operating margin was 4.1 per cent (1.0). The currency e#ect of approximately SEK 0 million (neg: 5) on operating pro!t excluding restructuring costs comprised a negative translation e#ect of SEK 5 million and a positive transaction e#ect of SEK 5 million.

Kitchen market

Demand is deemed to have fallen in France and Austria, while it has risen slightly in Germany compared with the year-earlier period.

Nobia

Organic growth was primarily attributable to the positive sales trend in France.

Negative currency e"ects of approximately SEK 75 million (neg: 114) impacted net sales for the quarter.

The gross margin strengthened, mainly as a result of the price increases implemented and a changed sales mix.

Furthermore, implemented cost-savings measures contributed to the improvement in the operating margin.

Restructuring costs for the period pertain to the savings measures taken in Hygena, France.

Quarterly data in SEK

		2010	2011
	I	II	III	IV	I	II
Net sales, SEK m	967	1,040	875	923	798	993
Gross pro!t excluding restructuring costs, SEK m	358	400	363	380	316	414
Gross margin excluding restructuring costs, %	37.0	38.5	41.5	41.2	39.6	41.7
Operating pro!t/loss excluding restructuring costs, SEK m	–60	10	6	11	–34	41
Operating margin excluding restructuring costs, %	–6.2	1.0	0.7	1.2	–4.3	4.1
Operating pro!t/loss, SEK m	–84	–11	–12	–140	–22	36
Operating margin, %	–8.7	–1.1	–1.4	–15.2	–2.8	3.6

Store trend, April–June
Refurbished or relocated	–
Newly opened, net	–7
Number of stores	180
of which franchise	1
of which Group-owned	179

Percentage of consolidated net sales, second quarter, %

Consolidated earnings, cash #ow and !nancial position January–June 2011

Net sales for the !rst half-year amounted to SEK 6,766 million (7,252). Organic growth totalled 2 per cent (neg: 2). Operating pro!t excluding restructuring costs of net SEK 32 million (154) amounted to SEK 312 million (171), corresponding to an operating margin of 4.6 per cent (2.4). Pro!t after tax and including restructuring costs was SEK 167 million (loss: 21), corresponding to earnings per share of SEK 1.00 (loss per share: 0.13). Operating cash "ow amounted to SEK 12 million (261).

The Nordic market is continuing to display a positive trend, whereas other markets combined showed a negative trend.

Divested Pronorm contributed SEK 46 million to net sales in the !rst quarter of 2010.

Nobia's organic growth during the !rst six months of 2011 was 2 per cent, comprising negative 6 per cent in the UK region, positive 11 per cent in the Nordic region and 0 per cent in the Continental Europe region. Negative currency e"ects of SEK 558 million (neg: 567) impacted net sales for the half-year.

Currency e"ects made a positive contribution of approximately SEK 30 million (neg: 25) to operating pro!t excluding restructuring costs, comprising a negative translation e"ect of SEK 25 million (neg: 15) and a positive transaction e"ect of SEK 55 million (neg: 10).

The underlying improvement in earnings was mainly attributable to higher sales prices, the changed product mix and implemented cost savings.

Operating cash #ow was adversely a"ected by lower prepayments in the UK and France, slightly higher inventory levels and higher paid tax.

Net !nancial items amounted to an expense of SEK 43 million (expense: 42). Net !nancial items include the net of return on pension assets and interest expense for pension liabilities corresponding to an expense of SEK 15 million (expense: 19).

The higher net interest expense of SEK 30 million (expense: 10) was attributable to higher interest rates and lower interest income on loan receivables settled in the !rst quarter of 2010.

The return on capital employed over the past twelve-month period was 5.0 per cent (0.4 January–December 2010) and the return on shareholders' equity was 2.7 per cent (neg: 2.4 January–December 2010).

Nobia's investments in !xed assets amounted to SEK 140 million (162), of which SEK 50 million (44) was related to store investments.

Goodwill at the end of the period amounted to SEK 2,663 million (2,875), corresponding to 74 per cent (76) of the Group's shareholders' equity.

Net debt including pension provisions amounted to SEK 1,541 million (1,896 in the year-earlier period and 1,510 for the full-year 2010).

The debt/equity ratio was 43 per cent at the end of the period (50).

Net sales and pro!t/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	2011	2010	2011	2010	2011	2010	2011	2010	2011	Change, %
Net sales from external customers	2,644	2,279	2,609	2,702	1,999	1,785	–	–	7,252	6,766	–7
Net sales from other regions	–	–	–	–	8	6	–8	–6	–	–	–
Total net sales	2,644	2,279	2,609	2,702	2,007	1,791	–8	–6	7,252	6,766	–7
Gross pro!t excluding restructuring costs	1,016	872	998	1,019	758	730	17	43	2,789	2,664	–4
Gross margin excluding restructuring costs, %	38.4	38.3	38.3	37.7	37.8	40.8	–	–	38.5	39.4	–
Operating pro!t/loss excluding restructuring costs	139	111	132	234	–50	7	–50	–40	171	312	82
Operating margin ex-cluding restructuring costs, %	5.3	4.9	5.1	8.7	–2.5	0.4	–	–	2.4	4.6	–
Operating pro!t/loss (EBIT)	130	106	132	217	–95	14	–150	–57	17	280	–
Operating margin, %	4.9	4.7	5.1	8.0	–4.7	0.8	–	–	0.2	4.1	–
Financial items	–	–	–	–	–	–	–	–	–42	–43	–2
Pro!t/loss after !nancial items, SEK m	–	–	–	–	–	–	–	–	–25	237	–

Restructuring measures in progress

Restructuring costs for January–June amounted to a net of SEK 32 million (154). The restructuring measures related to the relocation of production in Sweden, the reversal of previous restructuring reserves, central restructuring costs and rationalisation measures in the UK. Restructuring measures for the period impacted cash #ow in the amount of SEK 43 million. Prior years' restructuring costs negatively impacted cash #ow by approximately SEK 76 million.

Divested operations and !xed assets for sale

In the period 2008-2010, Nobia acquired a total of 15 stores from franchisees in Denmark with the intention of selling these on. Six of these stores were sold on in 2009 and 2010. In the !rst quarter of 2011, two stores were closed and another three stores were closed in the second quarter. The costs for the closures of these !ve stores were charged to the fourth quarter of 2010. One store was acquired in Denmark and !ve in Sweden during the second quarter and one store was sold on.

At the end of the !rst six months of 2011, Nobia has four stores in Denmark and !ve in Sweden, a total of nine stores, which are recognised in the Nordic region as discontinued operations and divestment group held for sale in accordance with IFRS 5.

The loss from these stores amounted to SEK 4 million (pro!t: 3) during the period January-June 2011. Earnings in the year-earlier period included a capital gain of SEK 11 million from these stores.

Nobia intends to divest one production property in both Denmark and Sweden in 2011. These properties are recognised in accordance with IFRS 5 under assets held for sale in the Nordic region.

Company acquisitions and divestments

No corporate acquisitions or divestments were made during the !rst six months of the year 2011.

Personnel

The number of employees at the end of the period amounted to 7,876 (7,920). The average number of employees during the period was 7,506 (7,502). At the end of 2010, the number of employees amounted to 8,089 (8,297).

Related-party transactions, Parent Company

The Parent Company invoiced Group-wide services to subsidiaries in an amount of SEK 28 million (1) during the period. This increase resulted from the build-up of central resources for sourcing and product-range co-ordination. The Parent Company reported earnings from participations in Group companies amounting to SEK 12 million (–).

Signi!cant risks for the Group and Parent Company

Nobia is exposed to strategic, operating and !nancial risks. The trends in Nobia's primary markets varied during the !rst six months of 2011. The Nordic market continued to display a positive trend, while other markets posted a negative trend. This means that combined production and deliveries are still at a low level. Nobia continues to capitalise on synergies and economies of scale by harmonising product lines, co-ordinating production and enhancing purchasing e*ciency. For a more detailed description of risks and risk management, refer to pages 26–27 of Nobia's 2010 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 Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. In this interim report, Nobia has applied the same accounting policies as were applied in the 2010 Annual Report.

IAS 19

On 30 June 2011, the PRI non-pro!t organisation decided to update the assumption of life expectancy in the calculation of the pension liability for the ITP 2 pension plan. PRI believes that the ITP 2 pension liability, which is measured in accordance with IAS 19, will generally increase approximately 8 per cent. The changed life expectancy assumption is to be classi!ed as an actuarial loss.

Nobia manages actuarial gains/losses in accordance with the corridor method, which means that the e"ect of the changed life expectancy assumption is deferred. The change will not impact net pro!t for the year. On 30 June 2011, Nobia's PRI liability amounted to approximately SEK 60 million.

New accounting policies 2011

New or revised IFRS and interpretive statements from the IFRS Interpretations Committee (IFRS IC) have not had any e"ect on the !nancial position, performance or other disclosures for the Group or the Parent Company.

For further information

Please contact any of the following:

• +46 (0)8 440 16 00 or +46 (0)708 65 59 00:
• Morten Falkenberg, President and CEO
• Mikael Norman, CFO
• Ingrid Yllmark, IRO

Presentation

The interim report will be presented on Tuesday, 19 July 2011 at 2:00 p.m. CET in a webcast teleconference that can be followed on Nobia's website. To participate in the teleconference, call one of the following numbers:

• From Sweden: +46 (0) 850 520 270
• From the UK: +44 (0) 207 509 5139
• From the US: +1 718 354 1226

Next report

The next reports will be published on 27 October 2011, and then on 14 February 2012.

Currency e"ect (EBIT)1)

		Translation e"ects		Transaction e"ects	Total e"ect
	Q2	Jan–Jun	Q2	Jan–Jun	Q2	Jan–Jun
UK region	–5	–10	15	25	10	15
Nordic region	–10	–15	10	25	0	10
Continental Europe region	–5	0	5	5	0	5
Group	–20	–25	30	55	10	30

1) Pertains to e"ects excluding restructuring costs.

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, !nancial position and pro!ts, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, 19 July 2011

Johan Molin Chairman

Bodil Eriksson Nora Førisdal Larssen Thore Ohlsson

Fredrik Palmstierna Rolf Eriksen Lotta Stalin

Morten Falkenberg President and CEO

Per Bergström Olof Harrius

Employee representative Employee representative

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 p.m. CET.

Box 70376 • SE-107 24 Stockholm, Sweden • Visiting address: Klarabergsviadukten 70 A5 • Tel +46 8 440 16 00 • Fax +46 8 503 826 49 • www.nobia.com Corporate Registration Number: 556528-2752 • The registered o*ce of the Board of Directors is in Stockholm, Sweden

Condensed consolidated income statement

	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
Net sales	3,796	3,559	7,252	6,766	13,599	14,085
Cost of goods sold	–2,307	–2,144	–4,502	–4,112	–8,350	–8,740
Gross pro!t	1,489	1,415	2,750	2,654	5,249	5,345
Selling and administrative expenses	–1,303	–1,196	–2,676	–2,369	–4,980	–5,287
Other expenses	–21	–2	–49	–5	0	–44
Share in pro!t of associated companies	–	–	–8	–	–	–8
Operating pro!t	165	217	17	280	269	6
Net !nancial items	–17	–22	–42	–43	–86	–85
Pro!t/loss after !nancial items	148	195	–25	237	183	–79
Tax	–31	–54	1	–66	–42	25
Pro!t/loss after tax from continuing operations	117	141	–24	171	141	–54
Pro!t/loss from divested operations, net after tax	–4	–4	3	–4	–42	–35
Pro!t/loss after tax	113	137	–21	167	99	–89
Total depreciation	113	92	230	192	409	447
Total impairment	–	2	46	8	59	97
Gross margin, %	39.2	39.8	37.9	39.2	38.6	37.9
Operating margin, %	4.3	6.1	0.2	4.1	2.0	0.0
Return on capital employed, %	–	–	–	–	5.0	0.4
Return shareholders' equity, %	–	–	–	–	2.7	–2.4
Earnings per share, before dilution, SEK1)	0.68	0.82	–0.13	1.00	0.59	–0.53
Earnings per share, after dilution, SEK1)	0.68	0.82	–0.13	1.00	0.59	–0.53
Number of shares at period-end 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 period-end, 000s2)	167,131	167,186	167,131	167,389	167,350	167,131
Average number of shares after dilution, 000s2)	167,131	167,186	167,131	167,389	167,350	167,131

1) Earnings per share attributable to Parent Company shareholders.

2) Excluding treasury shares.

Consolidated statement of comprehensive income

	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
Pro!t/loss after tax	113	137	–21	167	99	–89
Other comprehensive income
Exchange-rate di"erences attributable to translation of foreign operations	72	49	–121	–27	–312	–406
Cash-#ow hedges before tax, net	–12	–2	–12	6	22	4
Tax attributable to change in hedging reserve for the period, net	3	0	3	–2	–6	–1
Other comprehensive income/loss	63	47	–130	–23	–296	–403
Total comprehensive income/loss	176	184	–151	144	–197	–492
Total pro!t attributable to:
Parent Company shareholders	113	137	–21	167	99	–89
Non-controlling interests	0	0	0	0	0	0
Total pro!t/loss	113	137	–21	167	99	–89
Total comprehensive income attributable to:
Parent Company shareholders	176	184	–151	144	–196	–491
Non-controlling interests	0	0	0	0	–1	–1
Total comprehensive income	176	184	–151	144	–197	–492

Speci!cation of restructuring costs

Restructuring costs per function	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
Cost of goods sold	–13	–9	–39	–10	–133	–162
Selling and administrative expenses	–17	–14	–89	–21	–253	–321
Other expenses	–	–1	–26	–1	–3	–28
Total restructuring costs	–30	–24	–154	–32	–389	–511

Restructuring costs per region	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
UK	–9	–5	–9	–5	–103	–107
Nordic	–	–11	–	–17	–99	–82
Continental Europe	–21	–5	–45	7	–162	–214
Other and Group adjustments	–	–3	–100	–17	–25	–108
Group	–30	–24	–154	–32	–389	–511

Condensed consolidated balance sheet

	30 Jun		31 Dec
SEK m	2010	2011	2010
ASSETS
Goodwill	2,875	2,663	2,676
Other intangible !xed assets	171	271	258
Tangible !xed assets	2,570	2,080	2,184
Long-term receivables	71	60	62
Deferred tax assets	370	424	406
Total !xed assets	6,057	5,498	5,586
Inventories	1,106	971	971
Accounts receivable	1,609	1,437	1,180
Other receivables	377	347	321
Total current receivables	1,986	1,784	1,501
Cash and cash equivalents	247	205	356
Assets held for sale	80	85	72
Total current assets	3,419	3,045	2,900
Total assets	9,476	8,543	8,486
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	58	58	58
Other capital contributions	1,449	1,455	1,453
Reserves	–110	–405	–382
Pro!t brought forward	2,380	2,479	2,312
Total shareholders' equity attributable to Parent Company shareholders	3,777	3,587	3,441
Non-controlling interests	6	5	5
Total shareholders' equity	3,783	3,592	3,446
Provisions for pensions	655	557	587
Other provisions	176	307	411
Deferred tax liabilities	197	211	211
Other long-term liabilities, interest-bearing	1,398	1,0361)	1,247
Total long-term liabilities	2,426	2,111	2,456
Current liabilities, interest-bearing	108	159	43
Current liabilities, non-interest-bearing	3,095	2,675	2,530
Liabilities attributable to assets held for sale	64	6	11
Total current liabilities	3,267	2,840	2,584
Total shareholders' equity and liabilities	9,476	8,543	8,486
BALANCE-SHEET RELATED KEY RATIOS
Equity/assets ratio, %	40	42	41
Debt/equity ratio, %	50	43	44
Net debt, SEK m	1,896	1,541	1,510
Capital employed, closing balance, SEK m	5,944	5,345	5,323

1) The change between January–June 2011 is mainly attributable to loan repayments.

Statement of changes in consolidated shareholders ' equity

			Attributable to Parent Company shareholders
SEK m	Share capital	Other capital contri butions	Exchange-rate di"erences attributable to translation of foreign operations	Cash-#ow hedges after tax	Pro!t brought forward	Total	Non controlling interests	Total share holders' equity
Opening balance, 1 January 2010	58	1,449	24	–4	2,401	3,928	6	3,934
Loss for the period	–	–	–	–	–21	–21	0	–21
Other comprehensive loss for the period	–	–	–121	–9	–	–130	0	–130
Total comprehensive loss for the period	–	–	–121	–9	–21	–151	0	–151
Dividend	–	–	–	–	–	–	–	–
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
Opening balance, 1 January 2011	58	1,453	–381	–1	2,312	3,441	5	3,446
Pro!t for the period	–	–	–	–	167	167	0	167
Other comprehensive income/loss for the period	–	–	–27	4	–	–23	0	–23
Total comprehensive income/loss for the period	–	–	–27	4	167	144	0	144
Dividend	–	–	–	–	–	–	–	–
Allocation of employee share option scheme	–	2	–	–	–	2	–	2
Closing balance, 30 June 2011	58	1,455	–408	3	2,479	3,587	5	3,592

Condensed consolidated cash-!ow statement

	Apr–Jun Jan–Jun Jul–Jun		Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
Operating activities
Operating pro"t	165	217	17	280	269	6
Depreciation/impairment	113	94	2762)	2003)	468	5441)
Adjustments for non-cash items	18	6	50	–11	271	332
Tax paid	–16	–17	–5	–53	–99	–51
Change in working capital	114	–129	58	–273	–199	132
Cash !ow from operating activities	394	171	396	143	710	963
Investing activities
Investments in "xed assets	–86	–72	–162	–140	–325	–347
Other items in investing activities	2	–3	27	9	7	25
Interest received	3	3	8	4	14	18
Change in interest-bearing assets	–1	0	–1	4	11	6
Divestment of companies	–	–	491	–	0	491
Cash !ow from investing activities	–82	–72	363	–123	–293	193
Operating cash !ow before acquisition/divestment of com
panies, interest, increase/decrease of interest-bearing assets	310	96	261	12	392	641
Operating cash !ow after acquisition/divestment of companies, interest,
increase/decrease of interest-bearing assets	312	99	759	20	417	1,156
Financing activities
Interest paid	–9	–19	–18	–34	–69	–53
Change in interest-bearing liabilities	–323	–73	–8675)	–1356)	–359	–1,0914)
Dividend	–	–	–	–	0	0
Cash !ow from "nancing activities	–332	–92	–885	–169	–428	–1,144
Cash !ow for the period excluding exchange-rate di#erences
in cash and cash equivalents	–20	7	–126	–149	–11	12
Cash and cash equivalents at beginning of the period	264	193	384	356	247	384
Cash !ow for the period	–20	7	–126	–149	–11	12
Exchange-rate di#erences in cash and cash equivalents	3	5	–11	–2	–31	–40
Cash and cash equivalents at period-end	247	205	247	205	205	356

1) Impairment amounted to SEK 97 million and pertained to goodwill of 46 million in Pronorm, property and machinery of SEK 23 million in Myresjökök, buildings of SEK 14 million, kitchen displays of SEK 7 million, machinery of SEK 5 million and equipment of SEK 2 million.

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

3) Impairment amounted to SEK 8 million and SEK 4 million pertained to buildings, SEK 2 million to machinery and 2 million to kitchen displays.

4) Loan repayments totalling SEK 2,446 million were made and new loans totalling SEK 1,481 million were raised in the January-December period.

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

6) Loan repayments totalling 220 million were made in the January–June period.

Analysis of net debt	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
Opening balance	2,204	1,599	2,426	1,510	1,896	2,426
Translation di#erences	1	15	–114	1	–73	–188
Operating cash !ow	–310	–96	–261	–12	–392	–641
Interest paid, net	6	16	10	30	55	35
Divestment of companies	–	–	–160	–	–	–160
Change in pension liabilities	–5	7	–5	12	55	38
Dividend	–	–	–	–	0	0
Closing balance	1,896	1,541	1,896	1,541	1,541	1,510

Parent Company

Condensed Parent Company income statement	Apr–Jun		Jan–Jun		Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
Net sales	13	30	25	51	72	46
Administrative expenses	–28	–37	–51	–79	–136	–108
Other income/expenses	–	0	–33	0	0	–33
Operating loss	–15	–7	–59	–28	–64	–95
Pro!t from shares in Group companies	–	12	–	12	112	100
Other !nancial income and expenses	–8	–32	–16	–42	–29	–3
Pro!t/loss after !nancial items	–23	–27	–75	–58	19	2
Tax on pro!t for the period	–	0	–	0	1	1
Pro!t/loss for the period	–23	–27	–75	–58	20	3
Parent Company balance sheet					30 Jun	31 Dec
SEK m				2010	2011	2010
ASSETS
Fixed assets
Shares and participations in Group companies				1,379	1,247	1,245
Other investments held as !xed assets				3	0	4
Total !xed assets				1,382	1,247	1,249
Current assets
Current receivables
Accounts receivable				3	16	2
Receivables from Group companies				3,387	3,833	3,680
Other receivables				4	4	6
Prepaid expenses and accrued income				17	10	6
Cash and cash equivalents				79	24	169
Total current assets				3,490	3,887	3,863
Total assets				4,872	5,134	5,112
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
Pro!t brought forward				2,173	2,183	2,179
Pro!t/loss for the period				–75	–58	3
				1,682	1,709	1,766
Total shareholders' equity				3,411	3,438	3,495
Provisions for pensions				9	8	10
Long-term liabilities
Liabilities to credit institutes				800	800	800
Current liabilities
Liabilities to credit institutes				102	150	20
Accounts payable				7	9	11
Liabilities to Group companies				529	696	759
Other liabilities				1	2	1
Accrued expenses and deferred income				13	31	16
Total current liabilities				652	888	807
Total shareholders' equity, provisions and liabilities				4,872	5,134	5,112
Pledged assets				3	–	4
Contingent liabilities				844	465	678

Comparative data per region

Net sales		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
UK	1,360	1,137	2,644	2,279	4,833	5,198
Nordic	1,401	1,432	2,609	2,702	5,185	5,092
Continental Europe	1,040	993	2,007	1,791	3,589	3,805
Other and Group adjustments	–5	–3	–8	–6	–8	–10
Group	3,796	3,559	7,252	6,766	13,599	14,085
Gross pro!t excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
UK	543	430	1,016	872	1,885	2,029
Nordic	550	553	998	1,019	1,966	1,945
Continental Europe	400	414	758	730	1,473	1,501
Other and Group adjustments	9	27	17	43	58	32
Group	1,502	1,424	2,789	2,664	5,382	5,507
Gross margin excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
%	2010	2011	2010	2011	2010/11	2010
UK	39.9	37.8	38.4	38.3	39.0	39.0
Nordic	39.3	38.6	38.3	37.7	37.9	38.2
Continental Europe	38.5	41.7	37.8	40.8	41.0	39.4
Group	39.6	40.0	38.5	39.4	39.6	39.1
Operating pro!t excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
SEK m	2010	2011	2010	2011	2010/11	2010
UK	98	57	139	111	298	326
Nordic	115	159	132	234	433	331
Continental Europe	10	41	–50	7	24	–33
Other and Group adjustments	–28	–16	–50	–40	–97	–107
Group	195	241	171	312	658	517
Operating margin excluding restructuring costs		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
%	2010	2011	2010	2011	2010/11	2010
UK	7.2	5.0	5.3	4.9	6.2	6.3
Nordic	8.2	11.1	5.1	8.7	8.4	6.5
Continental Europe	1.0	4.1	–2.5	0.4	0.7	–0.9
Group	5.1	6.8	2.4	4.6	4.8	3.7
Operating pro!t SEK m	2010	Apr–Jun 2011	2010	Jan–Jun 2011	Jul–Jun 2010/11	Jan–Dec 2010
UK	89	52	130	106	195	219
Nordic Continental Europe	115 –11	148 36	132 –95	217 14	334 –138	249 –247
Other and Group adjustments	–28	–19	–150	–57	–122	–215
Group	165	217	17	280	269	6
Operating margin		Apr–Jun		Jan–Jun	Jul–Jun	Jan–Dec
%	2010	2011	2010	2011	2010/11	2010
UK	6.5	4.6	4.9	4.7	4.0	4.2

Quarterly data per region

Net sales	2010			2011
SEK m	I	II	III	IV	I	II
UK	1,284	1,360	1,263	1,291	1,142	1,137
Nordic	1,208	1,401	1,091	1,392	1,270	1,432
Continental Europe	967	1,040	875	923	798	993
Other and Group adjustments	–3	–5	–1	–1	–3	–3
Group	3,456	3,796	3,228	3,605	3,207	3,559
Gross pro!t excluding restructuring costs		2010				2011
SEK m	I	II	III	IV	I	II
UK	473	543	507	506	442	430
Nordic	448	550	418	529	466	553
Continental Europe	358	400	363	380	316	414
Other and Group adjustments	8	9	12	3	16	27
Group	1,287	1,502	1,300	1,418	1,240	1,424
Gross margin excluding restructuring costs		2010				2011
%	I	II	III	IV	I	II
UK Nordic	36.8 37.1	39.9 39.3	40.1 38.3	39.2 38.0	38.7 36.7	37.8 38.6
Continental Europe	37.0	38.5	41.5	41.2	39.6	41.7
Group	37.2	39.6	40.3	39.3	38.7	40.0
Operating pro!t excluding restructuring costs		2010				2011
SEK m	I	II	III	IV	I	II
UK	41	98	101	86	54	57
Nordic	17	115	63	136	75	159
Continental Europe	–60	10	6	11	–34	41
Other and Group adjustments	–22	–28	–17	–40	–24	–16
Group	–24	195	153	193	71	241
Operating margin excluding restructuring costs		2010				2011
%	I	II	III	IV	I	II
UK	3.2	7.2	8.0	6.7	4.7	5.0
Nordic	1.4	8.2	5.8	9.8	5.9	11.1
Continental Europe	–6.2	1.0	0.7	1.2	–4.3	4.1
Group	–0.7	5.1	4.7	5.4	2.2	6.8
Operating pro!t SEK m	I	2010 II	III	IV	I	2011 II
UK	41	89	94	–5	54	52
Nordic	17	115	15	102	69	148
Continental Europe Other and Group adjustments	–84 –122	–11 –28	–12 –20	–140 –45	–22 –38	36 –19
Group	–148	165	77	–88	63	217
Operating margin		2010				2011
%	I	II	III	IV	I	II
UK	3.2	6.5	7.4	–0.4	4.7	4.6
Nordic	1.4	8.2	1.4	7.3	5.4	10.3
Continental Europe	–8.7	–1.1	–1.4	–15.2	–2.8	3.6
Group	–4.3	4.3	2.4	–2.4	2.0	6.1

De!nitions of key !gures

Capital employed

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

Debt/equity ratio

Net debt as a percentage of shareholders' equity.

Earnings per share

Pro!t for the period divided by a weighted average number of outstanding shares during the year.

EBITDA

Pro!t before depreciation and impairment.

Equity/assets ratio Equity as a percentage of total assets.

Gross margin

Gross pro!t as a percentage of net sales.

Net debt

Interest-bearing liabilities less interest-bearing assets. Interest-bearing liabilities comprise pension liabilities.

Operating cash "ow

Cash #ow from operating activities including cash #ow from investing activities, excluding cash #ow from acquisitions/divestments of subsidiaries, interest received, increase/decrease of interest-bearing assets.

Operating margin

Operating pro!t as a percentage of net sales.

Region

Region corresponds to operating segment according to IFRS 8.

Return on capital employed

Pro!t after !nancial income as a percentage of average capital employed. The calculation of average capital employed has been adjusted for acquisitions and divestments.

Return on shareholders' equity

Pro!t 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.