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Nobia

Quarterly Report Apr 27, 2015

3084_10-q_2015-04-27_456f33ce-7963-46e0-a008-042d6ab011a5.pdf

Quarterly Report

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Interim report January-March 2015

(All figures in brackets refer to the corresponding period in 2014)

January-March 2015*

  • Net sales for the first quarter amounted to SEK 3,251 million (2,695).
  • Organic growth was 5 per cent (4). In addition, sales for the quarter were positively affected by currency gains and the acquisition of Rixonway.
  • Operating profit amounted to SEK 211 million (156), corresponding to an operating margin of 6.5 per cent (5.8).
  • Currency gains of approximately SEK 25 million (0) affected the Group's operating profit, of which SEK 20 million (5) comprised translation effects and SEK 5 million (neg: 5) transaction effects.
  • Profit after tax amounted to SEK 153 million (47), corresponding to earnings per share of SEK 0.91 (0.28).
  • Operating cash flow amounted to SEK 34 million (132).
  • * Comparative figures for 2014 were restated excluding Hygena, see page 6.

Nobia Group summary

Jan-Mar Jan-Dec Apr-Mar
2014 2015 Change, % 2014 2014/2015 Change, %
Net sales, SEK m 2,695 3,251 21 11,411 11,967 5
Gross margin, % 40.1 40.0 41.0 40.9
Operating margin before depreciation and
impairment, %
9.2 9.2 11.3 11.2
Operating profit (EBIT), SEK m 156 211 35 975 1,030 6
Operating margin, % 5.8 6.5 8.5 8.6
Profit after financial items, SEK m 132 195 48 899 962 7
Profit/loss after tax including items affecting
comparability, SEK m
47 153 -27 79
Earnings/loss per share excluding items affecting
comparability, after dilution, SEK
0.28 0.91 3.20 3.82 19
Earnings/loss per share including items affecting
comparability, after dilution, SEK
0.28 0.91 -0.17 0.46
Operating cash flow, SEK m 132 34 -74 779 681 -13

All figures, except for net sales, profit after tax and operating cash flow, were adjusted for items affecting comparability. Additional information about items affecting comparability is provided on pages 6 and 9.

Comments from the CEO

"Nobia's organic sales growth was 5 per cent for the first quarter. Net sales also increased as a result of favourable currency effects and the acquisition of Rixonway. Our two largest regions, Nordic and the UK, reported both healthy organic growth and improved profitability. Operating profit rose 35 per cent year-on-year. New websites are being launched for our brands this spring, and new, innovative kitchen solutions are being marketed in our stores. In 2015, we will open new stores and we are continuing to work on co-ordinating sourcing, optimising production and harmonising our commercial activities in our three regions," says Morten Falkenberg, President and CEO.

Consolidated net sales, earnings and cash flow

Overall market performance is deemed to have improved compared with the first quarter of the preceding year. The Nordic market strengthened and the UK market is continuing to grow, while Nobia's main markets in Central Europe weakened.

Sales increased organically 5 per cent (4). Currency gains of SEK 289 million (79) affected sales for the quarter. Rixonway Kitchens, which was acquired during the fourth quarter of 2014, reported sales of SEK 132 million for the first quarter of 2015.

The gross margin amounted to 40.0 per cent (40.1), negatively impacted by the effect of the acquisition of Rixonway Kitchens and higher prices of materials, and positively affected by higher volumes and positive exchangerate fluctuations.

Operating profit improved as a result of higher sales, the acquisition of Rixonway Kitchens and favourable exchange-rate fluctuations.

Currency gains of approximately SEK 25 million (0) affected operating profit, of which SEK 20 million (5) comprised translation effects and SEK 5 million (losses: 5) transaction effects.

The return on operating capital including items affecting comparability was 21.2 per cent over the past twelve-month period (Jan-Dec 2014: 21.3). The return on shareholders' equity including items affecting comparability was 2.4 per cent over the past twelve-month period (Jan-Dec 2014: neg 0.9).

Operating cash flow declined primarily due to a negative change in working capital compared with the preceding year. Nobia's investments in fixed assets amounted to SEK 92 million (54), of which SEK 27 million (24) was related to store investments.

Group net sales and operating margin

Analysis of net sales

Jan-Mar
% SEK m
2014 2,695
Organic growth 5 135
– of which Nordic region 6 80
– of which UK region 8 86
– of which CE region -9 -31
Currency effect 11 289
Sales to Hygena 0 0
Acquired operations¹ 5 132
2015 21 3,251

1 Pertains to acquisition of Rixonway Kitchens, which was consolidated on 1 Nov 2014.

Currency effects on operating result

Trans
lation
effect
Trans
action
effect
Total
effect
Jan-Mar Jan-Mar Jan-Mar
Nordic region 5 -5 0
UK region 15 0 15
CE region 0 10 10
Koncernen 20 5 25

Hygena is included in the figures for 2013, but not for 2014 and 2015. Net sales quarter Operating margin excl items aff comp 12 months roll, %

Net sales and profit by region

Group-wide and
Nordic UK Central Europe eliminations Group
Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar
SEK m 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Change, %
Net sales from external customers 1,262 1,384 1,099 1,522 334 345 2,695 3,251 21
Net sales from other regions 0 1 1 0 -1 -1
Net sales 1,262 1,385 1,099 1,522 335 345 -1 -1 2,695 3,251 21
Gross profit excl items affecting comparability 503 550 444 604 131 140 3 5 1,081 1,299 20
Gross margin excl items affecting comparability, % 39.9 39.7 40.4 39.7 39.1 40.6 40.1 40.0
Operating profit/loss excl items affecting comparability 128 151 51 94 18 7 -41 -41 156 211 35
Operating margin excl items affecting comparability, % 10.1 10.9 4.6 6.2 5.4 2.0 5.8 6.5
Operating profit/loss 128 151 51 94 18 7 -41 -41 156 211 35
Operating margin, % 10.1 10.9 4.6 6.2 5.4 2.0 5.8 6.5
Net financial items -24 -16 17
Profit after financial items 132 195 48

Nordic region

January-March 2015

  • The overall Nordic market is deemed to have increased compared with the year-earlier period. Sweden remains the strongest market with growth in both consumer demand and in the professional customer segment.
  • Net sales for the first quarter amounted to SEK 1,385 million (1,262).
  • Organic growth was 6 per cent (6). Currency gains of SEK 44 million (losses: 4) impacted net sales for the quarter.
  • Gross profit amounted to SEK 550 million (503) and the gross margin to 39.7 per cent (39.9).
  • Operating profit amounted to SEK 151 million (128) and the operating margin to 10.9 per cent (10.1).
  • Currency gains totalling about SEK 0 million (losses: 15) impacted operating profit, of which SEK 5 million (0) comprised translation effects and negative 5 million (neg: 15) transaction effects.

Comments on performance

Organic growth was primarily attributable to increased deliveries to the professional segment, although sales to consumers also rose. Sales in the professional segment grew in all markets except the Norwegian market. Sales to consumers primarily increased in Sweden, but also in Finland, while sales declined in Denmark and Norway.

The gross margin weakened slightly due to currency losses and a weaker sales mix, which offset higher sales values and increased volumes.

The improvement in operating profit was mainly due to higher sales values and increased sales volumes.

In January, Nobia launched a new e-commerce platform. HTH is the first of the Group's brands to have this online store, initially for sections of the product range and for the Danish market.

The transition of the Finnish operations to the Group's common standard proceeded according to plan. The Finnish brand portfolio is being streamlined in 2015 by phasing out the Parma brand and instead focusing resources on strengthening the A la Carte and Petra brands.

Net sales and operating margin for the region

Our brands

Share of consolidated net sales, first quarter

Store trend, Jan-Mar 2015

Renovated or relocated
Newly opened/closed, net -3
Number of own kitchen stores 65

UK region

January-March 2015

  • The UK kitchen market continued to grow. Growth was primarily attributable to the market's lower price segments.
  • Net sales for the first quarter amounted to SEK 1,522 million (1,099).
  • Organic growth was 8 per cent (2). Currency gains of SEK 206 million (71) impacted net sales for the quarter and the acquisition of Rixonway Kitchens meant increased sales of SEK 132 million.
  • Gross profit amounted to SEK 604 million (444) and the gross margin to 39.7 per cent (40.4).
  • Operating profit amounted to SEK 94 million (51) and the operating margin was 6.2 per cent (4.6).
  • Currency gains totalling about SEK 15 million (15) impacted operating profit, of which SEK 15 million (5) comprised translation effects and SEK 0 million (10) transaction effects.

Comments on performance

Organic sales growth was primarily attributable to Magnet, but B2B sales also increased. In Magnet, sales to consumers (Retail) and to the project segment increased, which only partly offset lower sales to builders (Trade).

Rixonway Kitchens, which was acquired in the fourth quarter of 2014, reported net sales of SEK 132 million for the quarter.

The gross margin weakened due to lower sales values, higher prices of materials and an effect of the acquisition of Rixonway Kitchens, which only partly offset currency gains and increased volumes.

The improvement in operating profit was primarily attributable to higher sales volumes, currency gains and the earnings contribution from Rixonway Kitchens.

Magnet's transition to the Group's common standard dimension proceeded according to plan. The Simply Magnet range, which was launched in the third quarter of 2014, was well received by consumers.

Net sale and operating margin for the region

Share of consolidated net sales, first quarter

Store trend, Jan-Mar 2015

Renovated or relocated
Newly opened/closed, net 0
Number of own kitchen stores 208

Our brands

Central Europe region

January-March 2015

  • The market in Central Europe is deemed to have declined compared with the year-earlier period. The Austrian market performed particularly negatively during the quarter.
  • Net sales for the first quarter amounted to SEK 345 million (335).
  • Organic growth was a negative 9 per cent (pos: 8). Currency gains of SEK 40 million (12) impacted net sales for the quarter.
  • Gross profit amounted to SEK 140 million (131) and the gross margin to 40.6 per cent (39.1).
  • Operating profit amounted to SEK 7 million (18) and the operating margin was 2.0 per cent (5.4).
  • Currency gains totalling about SEK 10 million (0) impacted operating profit, of which SEK 0 million (0) comprised translation effects and SEK 10 million (0) transaction effects.

Comments on performance

The decline in organic sales was primarily attributable to the Austrian operations, and was largely a consequence of the weaker market conditions. Poggenpohl's organic sales trend was also negative, caused by lower project volumes, a factor that was only partly offset by higher deliveries through own stores and retailers, primarily in the US.

The gross margin strengthened as a result of higher sales values and currency gains.

Operating profit fell due to lower sales volumes and nonrecurring costs for impairment on a receivable.

On 23 February 2015, the French competition authority approved Nobia's divestment of the French kitchen chain Hygena to Fournier Group. The transaction took place on 2 March 2015.

Net sales and operating margin for the region

Our brands

Share of consolidated net sales, first quarter

Store trend, Jan-Mar 2015

Renovated or relocated
Newly opened/closed, net
Divested operations -125
Number of own kitchen stores 35

Other information

Financing

In 2014, Nobia agreed a new syndicated loan of SEK 1 billion with a term of five years. In addition, Nobia has a bond loan from AB SEK Securities (Swedish Export Credit Corporation) of SEK 800 million, which expires in 2017.

Net debt including pension provisions amounted to SEK 1,160 million (1,104) at the end of the first quarter. The debt/equity ratio was 35 per cent (35) at the end of the period.

Net financial items amounted to an expense of SEK 16 million (expense: 24). Net financial items include the net of returns on pension assets and interest expense on pension liabilities corresponding to an expense of SEK 9 million (expense: 7). The net interest expense amounted to SEK 6 million (expense: 16).

Corporate acquisitions and divestments

On 30 October 2014, Nobia signed an agreement for the divestment of the French kitchen chain Hygena to Fournier Group for EUR 20 million, on a cash and debt-free basis, conditional on the approval of the French competition authority. In conjunction with signing this sales agreement, Hygena's net assets were reclassified to the Disposal group held for sale, in accordance with IFRS 5.

On 23 February 2015, the French competition authority approved the divestment of Hygena to Fournier Group. The transaction took place on 2 March 2015 and Nobia thus received the purchase consideration.

Earnings from discontinued operations

Hygena's operations are recognised as discontinued operations from 1 January 2015 and the income statement, organic growth, specification of items affecting comparability, cash-flow statement and comparative data per region for 2014 have been restated. Restatements are presented in an appendix available from Nobia's website under Investor Relations/Reports and presentations.

Profit after tax from discontinued operations for the first quarter of 2015 amounted to SEK 2 million (loss: 52), of which SEK 55 million pertained to the divestment of Hygena, a loss of SEK 51 million pertained to Hygena's current earnings and a loss of SEK 2 million referred to the stores that Nobia acquired from franchisees, with the intention of subsequently selling on.

During the first quarter of 2015, there was no change in the number of stores that Nobia acquired from franchisees and that are recognised as Discontinued operations and disposal group held for sale, in accordance with IFRS 5. At the end of the first quarter, Nobia had four stores in Denmark and three stores in Sweden, a total of seven stores.

Items affecting comparability

Items affecting comparability refer to certain nonrecurring costs that were referred to as "restructuring costs" in previous interim reports, see page 9. No items affecting comparability impacted operating profit for the first quarter of 2015 (–).

Return on shareholders' equity and on operating capital

Net debt and net debt/equity ratio

Financial instruments

The carrying amounts of the Group's financial assets and liabilities are an approximation of their fair values. Financial instruments measured at fair value in the balance sheet are forward agreements and an interest swap comprised of assets at a value of SEK 7 million (31 Dec 2014: 20) and liabilities at a value of SEK 41 million (31 Dec 2014: 24). The measurement of these items is attributable to level 2 of the fair value hierarchy, meaning based on indirectly observable market data.

Personnel

The number of employees at the end of the period was 6,336 (6,609). The decrease in the number of employees since year-end 2014 was primarily due to the divestment of Hygena, which had 663 employees on 28 February 2015.

Annual General Meeting

Nobia's Annual General Meeting was held on 14 April 2015 in Stockholm. The Annual General Meeting resolved in accordance with the proposed dividend to shareholders for the 2014 fiscal year of SEK 1.75 per share or about SEK 293 million in total. Payment took place on 21 April.

The Annual General Meeting resolved that the Board would comprise nine members and re-elected Morten Falkenberg, Lilian Fossum Biner, Nora Førisdal Larssen, Stefan Jacobsson, Thore Ohlsson, Fredrik Palmstierna and Ricard Wennerklint. Tomas Billing and Christina Ståhl were elected new Board members. Tomas Billing was elected Chairman of the Board. Johan Molin, who had served as the Chairman of the Board until the Annual General Meeting, declined re-election.

The company's auditors, KPMG AB, with George Pettersson as the Auditor in Charge, were re-elected for the period up to end of the next Annual General Meeting.

The Annual General Meeting appointed a Nomination Committee comprising Viveca Ax:son Johnson (Chairman) representing Nordstjernan, Fredrik Palmstierna representing Investmentaktiebolaget Latour, Torbjörn Magnusson representing If Skadeförsäkring and Evert Carlsson representing Lannebo fonder, and adopted the instruction for the Nomination Committee.

The Annual General Meeting resolved to introduce a Performance Share Plan, similar to the Plans introduced in 2012-2014. The Plan comprises approximately 100 employees and imposes the requirement that participants must personally purchase shares. The participants are entitled to allotment of one matching share and a maximum of four performance shares for each Nobia share that the participants invest in under the framework of the Plan, free of charge after three years, provided that certain conditions have been fulfilled. The conditions are linked to continued employment and ownership of shares and a financial performance target.

For the Performance Share Plan, the Annual General Meeting resolved to sell a maximum of 1,500,000 treasury shares to the participants of the Plan.

The Annual General Meeting resolved to authorise the Board of Directors, during the period until the next Annual General Meeting, to acquire and sell treasury shares.

A detailed description of the resolutions made at the Annual General Meeting is available from Nobia's website.

Parent Company

The Parent Company invoiced Group-wide services to subsidiaries in an amount of SEK 49 million (33) during the period. The Parent Company reported profit of SEK 0 million (0) from participations in Group companies.

Significant risks in the Group and Parent Company

Nobia is exposed to strategic, operating and financial risks, which are described on pages 33-35 of the 2014 Annual Report. During the January-March 2015 period, the overall Nordic market displayed a slight improvement. Demand in the UK is considered to have increased slightly, while demand in Continental Europe remained weak. Overall, market conditions are deemed to remain challenging. This means that total production and deliveries remain at a low level. Nobia is continuing to capitalise on synergies and economies of scale by harmonising the product range, co-ordinating production and enhancing purchasing efficiency. Nobia's balance sheet contains goodwill of SEK 2,337 million. The value of this asset item is tested if there are any indications of a decline in value and at least once annually.

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. Nobia has applied the same accounting policies in this interim report as were applied in the 2014 Annual Report.

Stockholm, 27 April 2015

Morten Falkenberg President and CEO

Nobia AB, Corporate Registration Number 556528-2752

This interim report is unaudited.

Condensed consolidated income statement

Jan-Mar Jan-Dec Apr-Mar
SEK m 2014 2015 2014 2014/15
Net sales 2,695 3,251 11,411 11,967
Cost of goods sold -1,614 -1,952 -6,794 -7,132
Gross profit 1,081 1,299 4,617 4,835
Selling and administration expenses -939 -1,089 -3,743 -3,893
Other income/expenses 14 1 4 -9
Operating profit 156 211 878 933
Net financial items -24 -16 -78 -70
Profit/loss after financial items 132 195 800 863
Tax -33 -44 -205 -216
Profit/loss after tax from continuing operations 99 151 595 647
Profit/loss from discontinued operations, net after tax -52 2 -622 -568
Profit/loss after tax 47 153 -27 79
Total profit attributable to:
Parent Company shareholders 47 153 -28 78
Non-controlling interests 0 0 1 1
Total profit/loss 47 153 -27 79
Total depreciation¹ 79 86 310 317
Total impairment¹ 12 1 16 5
Gross margin, % 40.1 40.0 40.5 40.4
Operating margin, % 5.8 6.5 7.7 7.8
Return on operating capital, % 21.3 21.2
Return on shareholders equity, % -0.9 2.4
Earnings per share before dilution, SEK2 0.28 0.91 -0.17 0.46
Earnings per share after dilution, SEK2 0.28 0.91 -0.17 0.46
Number of shares at period end before dilution, 000s3 167,131 167,775 167,526 167,775
Average number of shares before dilution, 000s3 167,131 167,613 167,334 164,455
Number of shares after dilution at period end, 000s3 167,405 168,301 167,526 168,224
Average number of shares after dilution, 000s3 167,405 168,187 167,334 167,942

1 Excludes depreciation and impairment recognised on the line "Profit/loss from discontinued operations, net after tax".

2 Earnings/loss per share attributable to Parent Company shareholders.

3 Excluding treasury shares.

Consolidated statement of comprehensive income

Jan-Mar Jan-Dec Apr-Mar
SEK m 2014 2015 2014 2014/15
Profit/loss after tax 47 153 -27 79
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange-rate differences attributable to translation of foreign operation 26 56 369 399
Cash flow hedges before tax -17 -25 -5 -13
Tax attributable to change in hedging reserve for the period 4 5 1 2
13 36 365 388
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans -27 -134 -202 -309
Tax relating to remaeasurements of defined benefit pension plans 5 27 41 63
-22 -107 -161 -246
Other comprehensive income/loss -9 -71 204 142
Total comprehensive income/loss 38 82 177 221
Total comprehensive income/loss attributable to:
Parent Company shareholders 38 82 176 220
Non-controlling interests 0 0 1 1
Total comprehensive income/loss 38 82 177 221

Specification of items affecting comparability¹

Jan-Mar Jan-Dec Apr-Mar
Items affecting comparability per function, SEK m 2014 2015 2014 2014/15
Cost of goods sold -60 -60
Selling and administrative expenses -17 -17
Other expenses -20 -20
Total items affecting comparability -97 -97
Jan-Mar Jan-Dec Apr-Mar
Items affecting comparability per region, SEK m 2014 2015 2014 2014/15
Nordic -6 -6
UK 2
-83
-83
Central Europe
Group-wide and eliminations -8 -8
Group -97 -97

1 Refers to costs affecting operating profit.

2 Impairment of SEK 17 million referring to kitchen exhibitions.

Condensed consolidated balance sheet

31 Mar 31 Dec
SEK m 2014 2015 2014
ASSETS
Goodwill 2,165 2,337 2,278
Other intangible fixed assets 170 183 158
Tangible fixed assets 1,818 1,670 1,672
Long-term receivables 55 38 35
Deferred tax assets 432 343 303
Total fixed assets 4,640 4,571 4,446
Inventories 867 918 853
Accounts receivable 1,179 1,341 1,091
Other receivables 483 400 403
Total current receivables 1,662 1,741 1,494
Cash and cash equivalents 348 723 470
Assets held for sale 23 17 592
Total current assets 2,900 3,399 3,409
Total assets 7,540 7,970 7,855
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 58 58 58
Other capital contributions 1,465 1,472 1,470
Reserves -345 43 7
Profit brought forward 2,016 1,715 1,656
Total shareholders' equity attributable to Parent Company shareholders 3,194 3,288 3,191
Non-controlling interests 4 5 5
Total shareholders' equity 3,198 3,293 3,196
Provisions for pensions 652 1,077 869
Other provisions 202 131 159
Deferred tax liabilities 158 138 143
Other long-term liabilities, interest-bearing 805 810 811
Total long-term liabilities 1,817 2,156 1,982
Current liabilities, interest-bearing 2 5 4
Current liabilities, non-interest-bearing 2,519 2,511 2,313
Liabilities attributable to assets held for sale 4 5 360
Total current liabilities 2,525 2,521 2,677
Total shareholders' equity and liabilities 7,540 7,970 7,855
BALANCE-SHEET RELATED KEY RATIOS
Equity/assets ratio, % 42 41 41
Debt/equity ratio, % 35 35 38
Net debt, closing balance, SEK m 1,104 1,160 1,206
Operating capital, closing balance, SEK m 4,302 4,453 4,402
Capital employed, closing balance, SEK m 4,658 5,184 4,880

Statement of changes in consolidated shareholders' equity

Attributable to Parent Company shareholders
Exchange-rate
differences
attributable to Total
translation of Cash-flow Profit Non share
Share Other capital foreign hedges brought controlling holders
SEK m capital contributions operations after tax forward Total interests equity
Opening balance, 1 January 2014 58 1,463 -361 3 1,991 3,154 4 3,158
Profit/loss for the period 47 47 0 47
Other comprehensive income/loss for the period 26 -13 -22 -9 0 -9
Total comprehensive income for the period 26 -13 25 38 0 38
Dividend 0 0
Allocation of employee share option and share saving scheme 2 2 2
Closing balance, 31 March 2014 58 1,465 -335 -10 2,016 3,194 4 3,198
Opening balance, 1 January 2015 58 1,470 8 -1 1,656 3,191 5 3,196
Profit/loss for the period 153 153 0 153
Other comprehensive income/loss for the period 56 -20 -107 -71 0 -71
Total comprenhensive income/loss for the period 56 -20 46 82 0 82
Dividend 0 0
Allocation of employee share option and share saving scheme 2 0 2 2
Treasury shares sold 13 13 13
Closing balance, 31 March 2015 58 1,472 64 -21 1,715 3,288 5 3,293

Condensed consolidated cash-flow statement

Jan-Mar Jan-Dec Apr-Mar
SEK m 2014 2015 2014 2014/15
Operating activities
Operating profit 156 211 878 933
Operating profit/loss for discontinued operations -63 5 -484 -416
Depreciation/Impairment 1
113
2
87
3
722
696
Adjustments for non-cash items -4 -42 99 61
Tax paid -52 -61 -194 -203
Change in working capital 23 -77 12 -88
Cash flow from operating activities 173 123 1,033 983
Investing activities
Investments in fixed assets -54 -92 -316 -354
Other items in investing activities 13 3 62 52
Interest received 0 2 6 8
Change in interest-bearing assets 1 -1 1 -1
Acquisistion of operations -250 -250
Divestment of operations -1 239 -16 224
Cash flow from investing activities -41 151 -513 -321
Operating cash flow before acquisition/divestment of operations
interest, increase/decrease of interest-bearing assets 132 34 779 681
Operating cash flow after aquisition/divestment of operations, interest,
increase/decrease of interest-bearing assets 132 274 520 662
Financing activities
Interest paid -16 -9 -43 -36
Change in interest-bearing liabilities 4
-47
-17
5
-190
6
-160
Treasury shares sold 13 21 34
Dividend 0 0 -167 -167
Cash flow from financing activities -63 -13 -379 -329
Cash flow for the period excluding exchange-rate differences
in cash and cash equivalents 69 261 141 333
Cash and cash equivalents at beginning of the period 278 470 278 348
Cash flow for the period 69 261 141 333
Exchange-rate differences in cash and cash equivalents 1 -8 51 42
Cash and cash equivalents at period-end 348 723 470 723

1 Impairment amounted to SEK 12 million and pertained to kitchen exhibitions.

2 Impairment amounted to SEK 1 million and pertained to kitchen exhibitions.

3 Impairment amounted to SEK 351 million, of which SEK 328 million pertained to goodwill, SEK 2 million to other intangible assets and SEK 21 million to kitchen exhibitions. Reverse of previous impairment amounted to SEK 7 million and referred to buildings. 4 No repayment or loans raised.

5 No repayment or loans raised.

6 Loan repayments totalling SEK 100 million.

Analysis of net debt

Jan-Mar Jan-Dec Apr-Mar
SEK m 2014 2015 2014 2014/15
Opening balance 1,176 1,206 1,176 1,104
Acquisition of operations 361 361
Divestment of operations 1 -239 16 -224
Translation differences 7 39 14 46
Operating cash flow -132 -34 -779 -681
Interest paid, net 16 7 37 28
Remeasurements of defined benefit pension plans 27 134 195 302
Other change in pension liabilities 9 60 40 91
Dividend 0 0 167 167
Treasury shares sold -13 -21 -34
Closing balance 1,104 1,160 1,206 1,160

Parent company

Condensed Parent Company income statement

Jan-Mar Jan-Dec Apr-Mar
SEK m 2014 2015 2014 2014/15
Net sales 29 49 118 138
Administrative expenses -48 -59 -238 -249
Operating loss -19 -10 -120 -111
Profit from shares in Group companies 312 312
Other financial income and expenses -16 -7 -39 -30
Profit/loss after financial items -35 -17 153 171
Tax on profit/loss for the period 0 0 1 1
Profit/loss for the period -35 -17 154 172
Parent Company balance sheet
31 Mar
31 Dec
SEK m 2014 2015 2014
ASSETS
Fixed assets
Shares and participations in Group companies 2,231 2,235 2,234
Total fixed assets 2,231 2,235 2,234
Current assets
Current receivables
Accounts receivable 7 27 8
Receivables from Group companies 2,485 3,211 3,195
Other receivables 9 7 12
Prepaid expenses and accrued income 33 46 54
Cash and cash equivalents 152 224 184
Total current assets 2,686 3,515 3,453
Total assets 4,917 5,750 5,687
SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES
Shareholders' equity
Restricted shareholders' equity
Share capital
Statutory reserve
58
1,671
58
1,671
58
1,671
1,729 1,729 1,729
Non-restricted shareholders' equity
Share premium reserve 52 52 52
Buy-back of shares -468 -433 -447
Profit brought forward 2,376 2,370 2,215
Profit/loss for the period -35 -17 154
1,925 1,972 1,974
Total shareholders' equity 3,654 3,701 3,703
Provisions for pensions 12 14 13
Long-term liabilities
Liabilities to credit institutes 800 800 800
Current liabilities
Liabilities to credit institutes 0 0 0
Accounts payable 11 9 22
Liabilities to Group companies 415 1,197 1,110
Other liabilities 4 1 2
Accrued expenses and deferred income
21 28 37
Total current liabilities 451 1,235 1,171
Total shareholders' equity, provisions and liabilities 4,917 5,750 5,687
Pledged assets 0 0 0

Comparative data per region

Jan-Mar Jan-Dec Apr-Mar
Net sales, SEK m 2014 2015 2014 2014/15
Nordic 1,262 1,385 5,215 5,338
UK 1,099 1,522 4,707 5,130
Central Europe 335 345 1,493 1,503
Group-wide and eliminations -1 -1 -4 -4
Group 2,695 3,251 11,411 11,967
Jan-Mar Jan-Dec Apr-Mar
Gross profit excl items affecting comparability, SEK m 2014 2015 2014 2014/15
Nordic 503 550 2,112 2,159
UK 444 604 1,927 2,087
Central Europe 131 140 621 630
Group-wide and eliminations 3 5 17 19
Group 1,081 1,299 4,677 4,895
Jan-Mar Jan-Dec Apr-Mar
Gross margin excl items affecting comparability, % 2014 2015 2014 2014/15
Nordic 39.9 39.7 40.5 40.4
UK 40.4 39.7 40.9 40.7
Central Europe 39.1 40.6 41.6 41.9
Group 40.1 40.0 41.0 40.9
Jan-Mar Jan-Dec Apr-Mar
Operating profit excl items affecting comparability, SEK m 2014 2015 2014 2014/15
Nordic 128 151 666 689
UK 51 94 353 396
Central Europe 18 7 117 106
Group-wide and eliminations -41 -41 -161 -161
Group 156 211 975 1,030
Jan-Mar Jan-Dec Apr-Mar
Operating margin excl items affecting comparability, % 2014 2015 2014 2014/15
Nordic 10.1 10.9 12.8 12.9
UK 4.6 6.2 7.5 7.7
Central Europe 5.4 2.0 7.8 7.1
Group 5.8 6.5 8.5 8.6
Jan-Mar Jan-Dec Apr-Mar
Operating profit, SEK m 2014 2015 2014 2014/15
Nordic 128 151 660 683
UK 51 94 270 313
Central Europe 18 7 117 106
Group-wide and eliminations -41 -41 -169 -169
Group 156 211 878 933
Jan-Mar Jan-Dec Apr-Mar
Operating margin, % 2014 2015 2014 2014/15
Nordic 10.1 10.9 12.7 12.8
UK 4.6 6.2 5.7 6.1
Central Europe 5.4 2.0 7.8 7.1
Group 5.8 6.5 7.7 7.8

Quarterly data per region

2014 2015
Net sales, SEK m I II III IV I
Nordic 1,262 1,448 1,123 1,382 1,385
UK 1,099 1,173 1,208 1,227 1,522
Central Europe 335 387 364 407 345
Group-wide and eliminations -1 -1 0 -2 -1
Group 2,695 3,007 2,695 3,014 3,251
2014 2015
Gross profit excl items affecting comparability, SEK m I II III IV I
Nordic 503 599 457 553 550
UK 444 477 505 501 604
Central Europe 131 151 168 171 140
Group-wide and eliminations 3 6 5 3 5
Group 1,081 1,233 1,135 1,228 1,299
I 2014
II
III IV 2015
I
Gross margin excl items affecting comparability, %
Nordic 39.9 41.4 40.7 40.0 39.7
UK 40.4 40.7 41.8 40.8 39.7
Central Europe 39.1 39.0 46.2 42.0 40.6
Group 40.1 41.0 42.1 40.7 40.0
Operating profit excl items affecting comparabiliby, SEK m I 2014
II
III IV 2015
I
Nordic 128 207 138 193 151
UK 51 103 108 91 94
Central Europe 18 22 43 34 7
Group-wide and eliminations -41 -39 -33 -48 -41
Group 156 293 256 270 211
2014 2015
Operating margin excl items affecting comparability, % I II III IV I
Nordic 10.1 14.3 12.3 14.0 10.9
UK 4.6 8.8 8.9 7.4 6.2
Central Europe 5.4 5.7 11.8 8.4 2.0
Group 5.8 9.7 9.5 9.0 6.5
2014 2015
Operating profit, SEK m I II III IV I
Nordic 128 207 138 187 151
UK 51 103 108 8 94
Central Europe 18 22 43 34 7
Group-wide and eliminations -41 -39 -33 -56 -41
Group 156 293 256 173 211
2014 2015
Operating margin, % I II III IV I
Nordic 10.1 14.3 12.3 13.5 10.9
UK 4.6 8.8 8.9 0.7 6.2
Central Europe 5.4 5.7 11.8 8.4 2.0
Group 5.8 9.7 9.5 5.7 6.5

Definitions

Return on shareholders' equity

Net 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.

Return on operating capital

Operating profit as a percentage of average operating capital excluding net assets attributable to discontinued operations. The calculation of average operating capital has been adjusted for acquisitions and divestments.

Gross margin

Gross profit as a percentage of net sales.

EBITDA

Earnings before depreciation/amortisation and impairment.

Net debt

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

Operating capital

Capital employed excluding interest-bearing assets.

Operating cash flow

Cash flow from operating activities including cash flow from investing activities, excluding cash flow from acquisitions/divestments of operations, interest received, increase/decrease in interest-bearing assets.

Region

A region comprises an operating segment in accordance with IFRS 8.

Earnings per share

Net profit for the period divided by a weighted average number of outstanding shares during the period.

Operating margin

Operating profit as a percentage of net sales.

Debt/equity ratio

Net debt as a percentage of shareholders' equity including non-controlling interests.

Equity/assets ratio

Shareholders' equity including non-controlling interests as a percentage of balance-sheet total.

Capital employed

Balance-sheet total less non-interest-bearing provisions and liabilities.

Currency effects

"Translation effects" refers to the currency effects arising when foreign results and balance sheets are translated to SEK.

"Transaction effects" refers to the currency effects arising when purchases or sales are made in currency other than the currency of the producing country (functional currency).

Information for shareholders

For further information

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

+46 (0)705 95 51 00:

  • Morten Falkenberg, President and CEO
  • Mikael Norman, CFO
  • Lena Schattauer, Head of Communication and Investor Relations

Presentation

The interim report will be presented on Monday, 27 April 2015 at 9:00 a.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)8 505 564 74
  • From the UK: +44 (0)203 364 5374
  • From the US: +1 855 753 22 30

Financial calendar

20 July 2015 Interim report January-June 2015
30 October 2015 Interim report January-September 2015

Nobia develops and sells kitchens through some twenty strong brands in Europe, including Magnet in the UK; HTH, Norema, Sigdal, Invita, Marbodal in Scandinavia; Petra and A la Carte in Finland; Ewe, FM and Intuo in Austria, as well as Poggenpohl globally. Nobia generates profitability by combining economies of scale with attractive kitchen offerings. The Group has approximately 6,200 employees and net sales of about SEK 12 billion. The Nobia share is listed on the Nasdaq Stockholm under the ticker NOBI. Website: www.nobia.com.

Box 70376 • SE-107 24 Stockholm, Sweden • Office address: Klarabergsviadukten 70 A5 • Tel +46 (0)8 440 16 00 • Fax +46 (0)8 503 826 49 • www.nobia.com. Corporate Registration Number: 556528–2752 • Board domicile: Stockholm, Sweden

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