Nobia

Quarterly Report • Oct 28, 2016

Interim report January-September 2016

(All figures in brackets refer to the corresponding period in 2015 and Hygena is recognised as a discontinued operation, refer to page 8.)

July-September 2016

• Net sales for the third quarter amounted to SEK 3,252 million (3,204).
• Organic growth was 2 per cent (9). Additionally, net sales were positively impacted by acquisitions and negatively impacted by currency effects and a decline in sales for Hygena.
• Operating profit amounted to SEK 337 million (343), corresponding to an operating margin of 10.4 per cent (10.7).
• Currency losses had an impact of approximately SEK 45 million on the Group's operating profit, of which a negative SEK 25 million in translation effects and a negative SEK 20 million in transaction effects.
• Profit after tax amounted to SEK 246 million (258), corresponding to earnings per share of SEK 1.46 (1.52).
• Operating cash flow amounted to SEK 235 million (274).

Nobia Group summary

		Jul-Sep		Jan-Sep			Jan-Dec	Oct-Sep
	2015	2016	Change, %	2015	2016	Change, %	2015	2015/2016	Change, %
Net sales, SEK m	3,204	3,252	1	10,030	10,242	2	13,332	13,544	2
Gross margin, %	40.9	39.3	–	40.7	39.8	–	40.2	39.6	–
Gross margin excl IAC, %	40.9	39.3	–	40.7	39.8	–	40.5	39.8	–
Operating margin before depreciation and impairment, %	13.3	12.7	–	12.1	12.1	–	11.2	11.2	–
Operating margin before depreciation and impairment excl IAC, %	13.3	12.7	–	12.1	12.1	–	11.8	11.8	–
Operating profit (EBIT), SEK m	343	337	-2	954	986	3	1,145	1,177	3
Operating profit (EBIT) excl IAC, SEK m	343	337	-2	954	986	3	1,241	1,273	3
Operating marign, %	10.7	10.4	–	9.5	9.6	–	8.6	8.7	–
Operating marign excl IAC, %	10.7	10.4	–	9.5	9.6	–	9.3	9.4	–
Profit after financial items, SEK m	331	321	-3	911	947	4	1,087	1,123	3
Profit/loss after tax , SEK m	258	246	-5	700	719	3	828	847	2
Earnings/loss per share, after dilution, SEK	1.52	1.46	-4	4.15	4.27	3	4.92	5.04	2
Operating cash flow, SEK m	274	235	-14	478	551	15	770	843	9

Information about items affecting comparability (IAC) is presented on pages 8 and 12.

Comments from the CEO

"Nobia's sales increased in the third quarter, despite significant currency effects. I am very pleased with the growth we can report for the Nordic region and that we succeeded in improving the operating margin in the UK. Although macroeconomic uncertainty did rise in the UK following the referendum, Nobia's third-quarter earnings in the region show that the company also remains on the right path there. Organic growth was the result of strong demand for kitchens in the project segment in the Nordic countries. We are working intensively towards achieving our target of an operating margin of 10 per cent as soon as possible," says President and CEO Morten Falkenberg.

Consolidated net sales, earnings and cash flow

The market in total is deemed to have improved during the third quarter compared with the year-earlier period.

Sales increased organically 2 per cent (9). Currency losses of SEK 228 million (gains: 176) affected sales for the quarter. Commodore and CIE, which were consolidated in the fourth quarter of 2015, generated sales of SEK 246 million in the third quarter.

The gross margin amounted to 39.3 per cent (40.9), adversely impacted by currency effects, a changed sales mix and by Commodore and CIE having a structurally lower gross margin.

Operating profit fell due to negative currency effects and higher costs, which could only partially be offset by the earnings contribution from Commodore and CIE and increased sales values.

The return on operating capital including items affecting comparability was 24.7 per cent over the past twelve-month period (Jan-Dec 2015: 26.9). The return on equity including items affecting comparability was 23.4 per cent over the past twelve-month period (Jan-Dec 2015: 24.1).

Operating cash flow declined mainly as a result of a negative change in working capital.

0 2 4 6 8 10 – 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 SEK m % Net sales, SEKm Operating margin excl IAC 12 months roll, % Operating margin 12 months roll, %

Analysis of net sales

	Jul-Sep
	%	SEK m
2015		3,204
Organic growth	2	51
– of which Nordic region	9	107
– of which UK region	-2	-32
– of which CE region	-5	-23
Currency effect	-7	-228
Sales to Hygena	-1	-21
Acquired operations¹	8	246
2016	2	3,252

¹ Pertains to the acquisition of Commodore and CIE, consolidated on 1 November 2015.

Currency effect on operating results

	Trans	Trans
	lation	action	Total
	effect	effect	effect
MSEK	Jul-Sep	Jul-Sep	Jul-Sep
Nordic region	5	-5	0
UK region	-30	-15	-45
CE region	0	0	0
Group	-25	-20	-45

Net sales and profit by region

Group net sales and operating margin

							Group-wide and
		Nordic		UK		Central Europe	eliminations		Group
		Jul-Sep		Jul-Sep		Jul-Sep	Jul-Sep		Jul-Sep
SEK m	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	Change, %
Net sales from external customers	1,237	1,355	1,535	1,495	432	402	–	–	3,204	3,252	1
Net sales from other regions	0	0	–	–	0	1	0	-1	–	–	–
Net sales	1,237	1,355	1,535	1,495	432	403	0	-1	3,204	3,252	1
Gross profit	491	537	631	573	184	161	5	7	1,311	1,278	-3
Gross margin, %	39.7	39.6	41.1	38.3	42.6	40.0	–	–	40.9	39.3	–
Operating profit/loss	172	185	163	166	39	19	-31	-33	343	337	-2
Operating margin, %	13.9	13.7	10.6	11.1	9.0	4.7	–	–	10.7	10.4	–

Nordic region

July-September 2016

• The Nordic kitchen market is deemed to have grown compared with the year-earlier period, driven primarily by an increase in newbuilds. The consumer segment weakened slightly, particularly in Sweden.
• Third-quarter net sales amounted to SEK 1,355 million (1,237).
• Organic growth was 9 per cent (12). Currency gains of SEK 11 million (losses: 16) impacted net sales for the quarter.
• The gross margin amounted to SEK 537 million (491) and gross margin to 39.6 per cent (39.7).
• Operating profit amounted to SEK 185 million (172) and the operating margin was 13.7 per cent (13.9).
• Currency gains totalling about SEK 0 million impacted operating profit, of which a positive SEK 5 million comprised translation effects and a negative SEK 5 million transaction effects.

Comments on performance

Our brands

Organic growth was attributable to increased sales to the project segment, which was partially countered by lower sales to the consumer segment. Sales to the project segment grew in all markets, with the largest increase noted in Sweden and Finland. The downturn in consumer sales primarily pertained to Sweden, but also Denmark.

The gross margin declined slightly, adversely affected by a changed sales mix and negative currency effects, and positively impacted by higher sales values.

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

Nobia has entered into a collaboration with the electronics chain Expert. Ready-to-assemble Norema-brand kitchens will be sold at 20 Expert stores in Norway from year-end.

Net sales and operating margin for the region

Share of consolidated net sales, third quarter

Store trend, Jul-Sep 2016

Renovated or relocated	–
Newly opened/closed, net	1
Number of own kitchen stores	52

UK region

July-September 2016

• The UK kitchen market is deemed to remain unchanged year-on-year. The UK's plans to leave the EU increased macroeconomic uncertainty and weakened consumer confidence, which primarily impacted the higher price segments.
• Third-quarter net sales amounted to SEK 1,495 million (1,535).
• Organic growth was a negative 2 per cent (pos: 5). Currency losses of SEK 233 million (gains: 159) impacted net sales for the quarter.
• Gross profit amounted to SEK 573 million (631) and the gross margin to 38.3 per cent (41.1).
• Operating profit amounted to SEK 166 million (163) and the operating margin was 11.1 per cent (10.6).
• Currency losses totalling about SEK 45 million impacted operating profit, of which a negative SEK 30 million comprised translation effects and a negative SEK 15 million transaction effects.

Comments on performance

The decline in organic growth was mainly due to lower sales for Magnet. The sales decline in Magnet was attributable to the consumer segment (Retail), while sales to professional builders and project customers (Trade) remained unchanged.

Sales to builders' merchants and DIY chains increased, whereas Rixonway's sales fell. Commodore and CIE, acquired in the fourth quarter of 2015, reported net sales of SEK 246 million for the quarter.

The gross margin declined due to negative currency effects and Commodore and CIE having a structurally lower gross margin.

The improvement in operating profit was primarily due to the earnings contribution from Commodore and CIE, lower prices of materials and higher sales values.

Efforts to realise synergy effects in the acquired companies are progressing as planned.

Net sales and operating margin for the region

Our brands

Share of consolidated net sales, third quarter

Store trend, Jul-Sep 2016

Renovated or relocated	–
Newly opened/closed, net	0
Number of own kitchen stores	206

Central Europe region

July-September 2016

• Nobia's markets in the Central Europe region are deemed to have grown year-on-year.
• Third-quarter net sales amounted to SEK 403 million (432).
• Organic growth was negative 5 per cent (pos: 9). Currency losses of SEK 5 million (gains: 34) impacted net sales for the quarter.
• Gross profit amounted to SEK 161 million (184) and the gross margin to 40.0 per cent (42.6).
• Operating profit amounted to SEK 19 million (39) and the operating margin was 4.7 per cent (9.0).
• Currency effects totalling about SEK 0 million impact operating profit, of which SEK 0 million comprised translation effects and SEK 0 million transaction effects.

Comments on performance

The decline in organic sales was primarily attributable to Poggenpohl. Sales via own stores for Poggenpohl fell, while project sales increased. In

the Austrian operations, sales to furniture chains in Austria declined, which could only be partially offset by higher export.

The gross margin weakened due to a negative sales mix and impairment of the Poggenpohl inventory.

The decline in operating profit was mainly due to lower sales volumes, weaker gross margin and higher costs.

Nobia's process for identifying a potential partner for Poggenpohl is continuing, see page 7.

Net sales and operating margin for the region

Our brands

Share of consolidated net sales, third quarter

Store trend, Jul-Sep 2016

Renovated or relocated	–
Newly opened/closed, net	–
Number of own kitchen stores	36

Group January-September 2016

January-September 2016

• Net sales for the January-September period 2016 amounted to SEK 10,242 million (10,030).
• Organic growth was 3 per cent (7).
• Operating profit amounted to SEK 986 million (954), corresponding to an operating margin of 9.6 per cent (9.5).
• Currency losses of about SEK 125 million impacted operating profit, of which a negative SEK 55 million comprised translation effects and a negative SEK 70 million transaction effects.
• Profit after tax amounted to SEK 719 million (700), corresponding to earnings per share of SEK 4.27 (4.15).
• Operating cash flow amounted to SEK 551 million (478).

Sales increased organically 3 per cent (7), distributed as 5 per cent (9) in the Nordic region, 1 per cent (7) in the UK and 0 per cent (neg: 1) in Central Europe. Currency losses of SEK 513 million (gains: 710) impacted net sales. Commodore and CIE reported sales of SEK 513 million for the period.

Operating profit improved, mainly due to increased sales, lower prices of materials and the acquisition of Commodore and CIE.

Group-wide items and eliminations reported an operating loss of SEK 109 million (loss: 109).

Operating cash flow increased as a result of lower investments and improved generated earnings.

Nobia's investments in fixed assets amounted to SEK 171 million (270), of which SEK 36 million (70) pertained to store investments.

Analysis of net sales

	jan-sep
	%	MSEK
2015		10,030
Organic growth	3	279
– of which Nordic region	5	213
– of which UK region	1	64
– of which CE region	0	2
Currency effect	-5	-513
Sales to Hygena	-1	-67
Acquired operations¹	5	513
2016	2	10,242

¹ Pertains to acquisition of Commodore and CIE, consolidated on 1 November 2015.

Currency effect on operating profit

	Trans lation effect	Trans action effect	Total effect
SEK m	Jan-Sep	Jan-Sep	Jan-Sep
Nordic region	-5	-50	-55
UK region	-50	-20	-70
CE region	0	0	0
Group	-55	-70	-125

								Group-wide and
		Nordic	UK		Central Europe		eliminations		Group
		Jan-Sep	Jan-Sep		Jan-Sep		Jan-Sep		Jan-Sep
	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	Change, %
Net sales from external customers	4,230	4,378	4,628	4,706	1,172	1,158	–	–	10,030	10,242	2
Net sales from other regions	1	1	–	–	1	2	-2	-3	–	–	–
Net sales	4,231	4,379	4,628	4,706	1,173	1,160	-2	-3	10,030	10,242	2
Gross profit	1,700	1,758	1,871	1,830	494	474	14	18	4,079	4,080	0
Gross margin, %	40.2	40.1	40.4	38.9	42.1	40.9	–	–	40.7	39.8	–
Operating profit/loss	577	619	413	452	73	24	-109	-109	954	986	3
Operating margin, %	13.6	14.1	8.9	9.6	6.2	2.1	–	–	9.5	9.6	–
Net financial items	–	–	–	–	–	–	–	–	-43	-39	9
Profit after financial items	–	–	–	–	–	–	–	–	911	947	4

Net sales and earnings per region

Other information

Financing

Net debt including pension provisions amounted to SEK 1,159 million (808) at the end of the third quarter. The debt/equity ratio was 33 per cent (22) at the end of the period.

Existing loan facilities on 30 September 2016 amounted to SEK 1,800 million, of which SEK 1,000 million comprised a syndicated bank loan expiring in 2019, and SEK 800 million comprised a bond loan from AB SEK Securities (Swedish Export Credit Corporation) expiring in 2017. The bank loan of SEK 1,000 million was unutilised at the end of the period.

Net financial items amounted to an expense of SEK 39 million (expense: 43). Net financial items include the net of returns on pension assets and interest expense on pension liabilities corresponding to an expense of SEK 25 million (expense: 27). The net interest expense amounted to SEK 14 million (expense: 16).

Corporate acquisitions and divestments

Nobia announced in May 2016 its intention to enter into a strategic partnership for the development, production and sale of kitchens from the Poggenpohl brand, and to offer a potential partner the opportunity to acquire a minority share in Poggenpohl. Efforts to find an investor in Poggenpohl continues.

Nobia announced on 12 November 2015 the acquisition of Commodore and CIE, two companies active in the private developer market in the UK. The purchase price consisted of GBP 28 million on a cash and debt-free basis, and a variable cash consideration of a maximum GBP 4 million, conditional upon the business performance. Commodore and CIE are consolidated in Nobia's accounts as of 1 November 2015.

Net debt and net debt/equity ratio

Earnings from discontinued operations

Nobia has acquired stores from franchisees with the intention of subsequently selling them on. At the end of 2015, Nobia had five stores reported as Discontinued operations and disposal group held for sale, in accordance with IFRS 5. During the January-September 2016 period, two stores that Nobia had previously acquired from franchisees, was sold on in Denmark and one store was closed. On 30 September 2016, Nobia had one store in Denmark and one store in Sweden, a total of two stores, recognised in accordance with IFRS 5.

Loss after tax from discontinued operations for the January-September 2016 period amounted to SEK 1 million (loss: 2), of which profit of SEK 5 million pertained to the dissolution of a provision relating to the sale of Hygena, while a loss of SEK 6 million referred to the stores that Nobia acquired from franchisees, with the intention of subsequently selling on. Loss after tax from discontinued operations for the January-September 2015 period amounted to SEK 2 million, of which profit of SEK 50 million pertained to the divestment of Hygena, a loss of SEK 51 million pertained to Hygena's current earnings and a loss of SEK 1 million referred to the stores acquired from franchisees, with the intention of subsequently selling on.

Items affecting comparability

Nobia recognises items affecting comparability separately to distinguish the performance of the underlying operations. Items affecting comparability refer to items that affect comparisons insofar as they do not recur with the same regularity as other items, see page 12. No items affecting comparability were reported during the January-September 2016 period (–). Approved and implemented restructuring measures for prior years were charged against cash flow for the period in the amount of SEK 1 million (22).

Personnel

The number of employees at the end of the period was 6,585 (6,392). The increase in the number of employees was mainly due to the acquisition of Commodore and CIE, which had 160 employees on 30 September 2016.

Changes in management

Mikael Norman, CFO, will leave Nobia on 31 October 2016. Kristoffer Ljungfelt will take office as the new CFO as of 1 November 2016. Kristoffer Ljungfelt previously served as the Business Area Director for Sigdal and Finance Director for Nobia Norway and the Nordic region.

David Thorne, CIO since November 2015, became a member of Nobia Group management on 6 October 2016.

Nomination Committee and AGM

Nobia's 2016 Annual General Meeting appointed a Nomination Committee tasked with submitting proposals to the 2017 Annual General Meeting for the Board of Directors, auditors, Chairman of the Annual General Meeting, as well as the Nomination Committee. The Nomination Committee has the following composition: Chairman Viveca Ax:son Johnson, Nordstjernan, Torbjörn Magnusson, If Skadeförsäkring, Lars Bergkvist, Lannebo fonder and Arne Lööw, Fourth Swedish National Pension Fund.

Shareholders in Nobia are welcome to submit views and proposals to the Nomination Committee, via Viveca Ax:son Johnson, Chairman of the Nomination Committee at +46 (0)8-788 50 00 or by post to: Nobia AB, Valberedningen, Box 70376, SE-107 24 Stockholm.

The Annual General Meeting will be held in Stockholm on 6 April 2017 at 4:00 p.m.

Transfer of treasury shares

During the January-September 2016 period, Nobia transferred 192,163 shares under the Performance Share Plan resolved by Nobia's 2013 Annual General Meeting.

The 2013 Performance Share Plan encompassed approximately 100 senior executives and was based on participants investing in Nobia shares that were locked into the plan. Each Nobia share invested in under the framework of the plan entitled participants, following a vesting period of approximately three years and provided that certain conditions were fulfilled, to allotment of matching and performance shares in Nobia.

As per 30 September 2016, Nobia's holding of treasury shares amounted to 6,819,990.

Significant risks in the Group and Parent Company

Nobia is exposed to strategic, operating and financial risks, which are described on pages 37-39 of the 2015 Annual Report. During the January-September 2016 period, the overall market trend is deemed to have improved slightly year-on-year. However, the overall market situation is 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 as at 30 September 2016 contained goodwill of SEK 2,420 million (2,334). The value of this asset item is tested if there are any indications of a decline in value and at least once annually.

Stockholm, 28 October 2016

Morten Falkenberg President and CEO

Nobia AB, Corporate Registration Number 556528-2752

Review report

Introduction

We have reviewed the summary interim financial information (interim report) of Nobia AB (Publ) as of 30 September 2016 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, 28 October 2016

KPMG AB

George Pettersson Authorised public accountant

Condensed consolidated income statement

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
SEK m	2015	2016	2015	2016	2015	2015/16
Net sales	3,204	3,252	10,030	10,242	13,332	13,544
Cost of goods sold	-1,893	-1,974	-5,951	-6,162	-7,974	-8,185
Gross profit	1,311	1,278	4,079	4,080	5,358	5,359
Selling and administrative expenses	-976	-961	-3,134	-3,126	-4,237	-4,229
Other income/expenses	8	20	9	32	24	47
Operating profit	343	337	954	986	1,145	1,177
Net financial items	-12	-16	-43	-39	-58	-54
Profit/loss after financial items	331	321	911	947	1,087	1,123
Tax	-76	-73	-209	-227	-262	-280
Profit/loss after tax from continuing operations	255	248	702	720	825	843
Profit/loss from discontinued operations, net after tax	3	-2	-2	-1	3	4
Profit/loss after tax	258	246	700	719	828	847
Total profit attributable to:
Parent Company shareholders	257	246	699	720	829	850
Non-controlling interests	1	0	1	-1	-1	-3
Total profit/loss	258	246	700	719	828	847
Total depreciation¹	91	83	265	253	341	329
Total impairment¹	-7	-6	-6	-4	5	7
Gross margin, %	40.9	39.3	40.7	39.8	40.2	39.6
Operating margin, %	10.7	10.4	9.5	9.6	8.6	8.7
Return on operating capital, %	–	–	–	–	26.9	24.7
Return on shareholders equity, %	–	–	–	–	24.1	23.4
Earnings per share before dilution, SEK2	1.53	1.46	4.16	4.28	4.93	5.04
Earnings per share after dilution, SEK2	1.52	1.46	4.15	4.27	4.92	5.04
Number of shares at period end before dilution, 000s3	168,247	168,473	168,247	168,473	168,281	168,473
Average number of shares before dilution, 000s3	168,237	168,473	167,990	168,409	168,060	168,375
Number of shares after dilution at period end, 000s3	168,622	168,700	168,608	168,713	168,657	168,709
Average number of shares after dilution, 000s3	168,617	168,700	168,455	168,689	168,517	168,676

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

2 Earnings per share attributable to the Parent Company shareholders.

3 Excluding treasury shares.

Consolidated statement of comprehensive income

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
SEK m	2015	2016	2015	2016	2015	2015/16
Profit/loss after tax	258	246	700	719	828	847
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange-rate differences attributable to translation of foreign operations	-39	14	35	-136	-89	-260
Cash flow hedges before tax	30	-8	11	-5	4	-12
Tax attributable to change in hedging reserve for the period	-6	2	-2	1	-1	2
	–15	8	44	-140	-86	-270
Items that will not be reclassified to profit
or loss
Remeasurements of defined benefit pension plans	58	-308	62	-526	170	-418
Tax relating to remeasurements of defined benefit pension plans	-11	47	-12	91	-34	69
	47	-261	50	-435	136	-349
Other comprehensive income/loss	32	-253	94	-575	50	-619
Total comprehensive income/loss	290	-7	794	144	878	228
Total comprehensive income/loss attributable to:
Parent Company shareholders	289	-7	793	145	879	231
Non-controlling interests	1	0	1	-1	-1	-3
Total comprehensive income/loss	290	-7	794	144	878	228

Specification of items affecting comparability

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Items affecting comparability SEK m	2015	2016	2015	2016	2015	2015/16
Write downs in Pgp US due to incorrect accounting	–	–	–	–	-96	-96
Items affecting comparability in operating profit	–	–	–	–	-96	-96
Items affecting comparability in taxes	–	–	–	–	21	21
Items affecting comparability, total	–	–	–	–	-75	-75
	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Items affecting comparability per function, SEK m	2015	2016	2015	2016	2015	2015/16
Net sales	–	–	–	–	-4	-4
Cost of goods sold	–	–	–	–	-33	-33
Selling and administrative expenses	–	–	–	–	-59	-59
Other expenses	–	–	–	–	0	0
Items affecting comparability in operating profit	–	–	–	–	-96	-96
Items affecting comparability in taxes	–	–	–	–	21	21
Items affecting comparability, total	–	–	–	–	-75	-75
	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Items affecting comparability per region, SEK m 1	2015	2016	2015	2016	2015	2015/16

Nordic	–	–	–	–	–	–
UK	–	–	–	–	–	–
Central Europe	–	–	–	–	2 -96	-96
Group-wide and eliminations	–	–	–	–	–	–
Group	–	–	–	–	-96	-96

1 Refers to costs that impact operating profit.

2 Impairment of SEK 10 million referring to kitchen displays.

Condensed consolidated balance sheet

	30 Sep		31 Dec
SEK m	2015	2016	2015
ASSETS
Goodwill	2,334	2,420	2,551
Other intangible fixed assets	137	98	146
Tangible fixed assets	1,718	1,657	1,722
Long-term receivables, interest-bearing (IB)	2	4	3
Long-term receivables	36	30	34
Deferred tax assets	278	315	241
Total fixed assets	4,505	4,524	4,697
Inventories	994	1,004	934
Accounts receivable	1,414	1,571	1,269
Current receivables, interest-bearing (IB)	3	2	5
Other receivables	445	443	391
Total current receivables	1,862	2,016	1,665
Cash and cash equivalents (IB)	863	812	765
Assets held for sale	8	4	8
Total current assets	3,727	3,836	3,372
Total assets	8,232	8,360	8,069
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	58	58	58
Other capital contributions	1,475	1,482	1,478
Reserves	51	-219	-78
Profit brought forward	2,143	2,225	2,360
Total shareholders' equity attributable to Parent Company
shareholders	3,727	3,546	3,818
Non-controlling interests	6	3	4
Total shareholders' equity	3,733	3,549	3,822
Provisions for pensions (IB)	863	1,166	732
Other provisions	140	95	122
Deferred tax liabilities	141	134	133
Other long-term liabilities, interest-bearing (IB)	809	809	811
Total long-term liabilities	1,953	2,204	1,798
Current liabilities, interest-bearing (IB)	4	2	4
Current liabilities	2,538	2,604	2,442
Liabilities attributable to assets held for sale	4	1	3
Total current liabilities	2,546	2,607	2,449
Total shareholders' equity and liabilities	8,232	8,360	8,069
BALANCE-SHEET RELATED KEY RATIOS
Equity/assets ratio, %	45	42	47
Debt/equity ratio, %	22	33	20
Net debt, closing balance, SEK m	808	1,159	774
Operating capital, closing balance, SEK m	4,541	4,708	4,596
Capital employed, closing balance, SEK m	5,410	5,526	5,369

Statement of changes in consolidated shareholders' equity

			Attributable to Parent Company shareholders
SEK m	Share capital	Other capital contributions	Exchange-rate differences attributable to translation of foreign operations	Cash-flow hedges after tax	Profit brought forward	Total	Non controlling interests	Total share holders equity
Opening balance, 1 January 2015	58	1,470	8	-1	1,656	3,191	5	3,196
Profit/loss for the period	–	–	–	–	699	699	1	700
Other comprehensive income/loss for the period	–	–	35	9	50	94	0	94
Total comprehensive income for
the period	–	–	35	9	749	793	1	794
Dividend	–	–	–	–	-294	-294	0	-294
Allocation of employee share option and share saving schemes	–	5	–	–	–	5	–	5
Treasury shares sold	–	–	–	–	32	32	–	32
Closing balance, 30 September 2015	58	1,475	43	8	2,143	3,727	6	3,733
Opening balance, 1 January 2016	58	1,478	-81	2	2,361	3,818	4	3,822
Profit/loss for the period	–	–	–	–	720	720	-1	719
Other comprehensive income/loss for the period	–	–	-136	-4	-435	-575	0	-575
Total comprenhensive income/loss for the period	–	–	-136	-4	285	145	-1	144
Dividend	–	–	–	–	-421	-421	0	-421
Allocation of share saving schemes	–	4	–	–	–	4	–	4
Closing balance, 30 September 2016	58	1,482	-217	-2	2,225	3,546	3	3,549

Condensed consolidated cash-flow statement

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
SEK m	2015	2016	2015	2016	2015	2015/16
Operating activities
Operating profit	343	337	954	986	1,145	1,177
Operating profit/loss for discontinued operations	3	-1	0	0	3	3
Depreciation/Impairment	84	77	1 259	2 249	3 346	336
Adjustments for non-cash items	-11	14	-40	13	66	119
Tax paid	-27	-28	-130	-142	-216	-228
Change in working capital	-44	-106	-318	-407	-199	-288
Cash flow from operating activities	348	293	725	699	1 145	1 119
Investing activities
Investments in fixed assets	-88	-63	-270	-171	-410	-311
Other items in investing activities	14	5	23	23	35	35
Interest received	1	0	4	1	6	3
Change in interest-bearing assets	3	0	1	3	-1	1
Acquisistion of operations	–	–	–	0	-348	-348
Divestment of operations	–	–	232	–	230	-2
Cash flow from investing activities	-70	-58	-10	-144	-488	-622
Operating cash flow before acquisition/divestment of
operations interest, increase/decrease of interest bearing assets	274	235	478	551	770	843
Total cashflow from operating and investing activities	278	235	715	555	657	497
Financing activities
Interest paid	-4	-5	-19	-16	-20	-17
Change in interest-bearing liabilities	-29	-57	4 -12	5 -116	6 -30	-134
Treasury shares sold	2	–	32	–	34	2
Dividend	–	–	-294	-421	-294	-421
Cash flow from financing activities	-31	-62	-293	-553	-310	-570
Cash flow for the period excluding exchange-rate differences in cash and cash equivalents	247	173	422	2	347	-73
Cash and cash equivalents at beginning of the period	622	616	470	765	470	863
Cash flow for the period	247	173	422	2	347	-73
Exchange-rate differences in cash and cash equivalents	-6	23	-29	45	-52	22
Cash and cash equivalents at period-end	863	812	863	812	765	812

1 Reversal of impairment amounted to SEK 6 million and pertained to kitchen displays.

2 Impairment amounted to SEK 2 million and pertained to kitchen displays SEK 1 million and equipment, tools, fixtures and fittings SEK 1 million. Reversal of impairment amounted to SEK 6 million and pertained to kitchen displays.

3 Impairment amounted to SEK 5 million and pertained to kitchen displays SEK 10 million, machinery SEK 1 million and buildings SEK 1 million. Reversal of previous impairment amounted to SEK 7 million and pertained to kitchen displays.

4 No repayment or loans raised.

5 No repayment or loans raised.

6 No repayment or loans raised.

Analysis of net debt

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
SEK m	2015	2016	2015	2016	2015	2015/16
Opening balance	1,123	1,080	1,206	774	1,206	808
Acquisition of operations	–	–	–	0	353	353
Divestment of operations	–	–	-232	–	-230	2
Translation differences	6	-5	17	-45	24	-38
Operating cash flow	-274	-235	-478	-551	-770	-843
Interest paid, net	3	5	15	15	14	14
Remeasurements of defined benefit pension plans	-58	308	-62	526	-170	418
Other change in pension liabilities	10	6	80	19	87	26
Dividend	–	–	294	421	294	421
Treasury shares sold	-2	–	-32	–	-34	-2
Closing balance	808	1,159	808	1,159	774	1,159

Note 1 – 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 2015 Annual Report.

Note 2 – References

Segment information – pages 2 and 6 . Loan and shareholders' equity transactions – pages 7 and 8. Divestment of operations – pages 7 and 8. Items affecting comparability – pages 8 and 12.

Note 3 – Financial instruments – fair value

The carrying amounts of the Group's financial assets and liabilities, recognised at amortised cost, are a reasonable 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 22 million (31 Dec 2015: 18) and liabilities at a value of SEK 18 million (31 Dec 2015: 14). The measurement of these items is attributable to level 2 of the fair value hierarchy, meaning based on indirectly observable market data. The supplementary purchase consideration of SEK 53 million pertaining to the acquisition of Commodore and CIE is conditional upon the business performance and is valued at level 3 of the fair value hierarchy.

Note 4 – Related-party transactions

The Parent Company invoiced Group-wide services to subsidiaries in an amount of SEK 171 million (151) during the January-September 2016 period. The Parent Company reported profit of SEK 0 million (0) from participations in Group companies.

Parent Company

Condensed Parent Company income statement

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
SEK m	2015	2016	2015	2016	2015	2015/16
Net sales	53	57	152	172	200	220
Administrative expenses	-61	-65	-189	-207	-262	-280
Operating loss	-8	-8	-37	-35	-62	-60
Profit from shares in Group companies	0	0	–	–	416	416
Other financial income and expenses	-12	3	-27	7	-49	-15
Profit/loss after financial items	-20	-5	-64	-28	305	341
Tax on profit/loss for the period	0	0	0	-1	0	-1
Profit/loss for the period	-20	-5	-64	-29	305	340

Parent Company balance sheet

	30 Sept	31 Dec
SEK m	2015	2016	2015
ASSETS
Fixed assets
Shares and participations in Group companies	2,237	2,088	2,084
Total fixed assets	2,237	2,088	2,084
Current assets
Current receivables
Accounts receivable	4	1	1
Receivables from Group companies	2,337	2,718	2,863
Other receivables	8	13	13
Prepaid expenses and accrued income	45	45	59
Cash and cash equivalents	571	546	472
Total current assets	2,965	3,323	3,408
Total assets	5,202	5,411	5,492
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	-404	-391	-402
Profit brought forward	2,069	1,948	2,071
Profit/loss for the period	-64	-29	305
	1,653	1,580	2,026
Total shareholders' equity	3,382	3,309	3,755
Provisions for pensions	14	15	15
Long-term liabilities
Liabilities to credit institutes	800	800	800
Current liabilities
Liabilities to credit institutes	0	0	0
Accounts payable	6	10	18
Liabilities to Group companies	972	1,255	864
Other liabilities	2	2	11
Accrued expenses and deferred income	26	20	29
Total current liabilities	1,006	1,287	922
Total shareholders' equity, provisions and liabilities	5,202	5,411	5,492
Pledged assets	0	0	0
Contingent liabilities	180	174	177

Comparative data per region

		Jul-Sep Jan-Sep		Jan-Dec	Oct-Sep
Net sales excl IAC, SEK m	2015	2016	2015	2016	2015	2015/16
Nordic	1,237	1,355	4,231	4,379	5,652	5,800
UK	1,535	1,495	4,628	4,706	6,099	6,177
Central Europe	432	403	1,173	1,160	1,588	1,575
Group-wide and eliminations	0	-1	-2	-3	-3	-4
Group	3,204	3,252	10,030	10,242	13,336	13,548

	Jul-Sep Jan-Sep		Jan-Dec	Oct-Sep
Net sales, SEK m	2015	2016	2015	2016	2015	2015/16
Nordic	1,237	1,355	4,231	4,379	5,652	5,800
UK	1,535	1,495	4,628	4,706	6,099	6,177
Central Europe	432	403	1,173	1,160	1,584	1,571
Group-wide and eliminations	0	-1	-2	-3	-3	-4
Group	3,204	3,252	10,030	10,242	13,332	13,544

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Gross profit excl IAC, SEK m	2015	2016	2015	2016	2015	2015/16
Nordic	491	537	1,700	1,758	2,254	2,312
UK	631	573	1,871	1,830	2,463	2,422
Central Europe	184	161	494	474	662	642
Group-wide and eliminations	5	7	14	18	16	20
Group	1,311	1,278	4,079	4,080	5,395	5,396

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Gross margin excl IAC, %	2015	2016	2015	2016	2015	2015/16
Nordic	39.7	39.6	40.2	40.1	39.9	39.9
UK	41.1	38.3	40.4	38.9	40.4	39.2
Central Europe	42.6	40.0	42.1	40.9	41.7	40.8
Group	40.9	39.3	40.7	39.8	40.5	39.8

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Gross profit, SEK m	2015	2016	2015	2016	2015	2015/16
Nordic	491	537	1,700	1,758	2,254	2,312
UK	631	573	1,871	1,830	2,463	2,422
Central Europe	184	161	494	474	625	605
Group-wide and eliminations	5	7	14	18	16	20
Group	1,311	1,278	4,079	4,080	5,358	5,359
	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Gross margin, %	2015	2016	2015	2016	2015	2015/16
Nordic	39.7	39.6	40.2	40.1	39.9	39.9
UK	41.1	38.3	40.4	38.9	40.4	39.2
Central Europe	42.6	40.0	42.1	40.9	39.5	38.5
Group	40.9	39.3	40.7	39.8	40.2	39.6

Comparative data per region, cont.

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Operating profit excl IAC, SEK m	2015	2016	2015	2016	2015	2015/16
Nordic	172	185	577	619	749	791
UK	163	166	413	452	567	606
Central Europe	39	19	73	24	81	32
Group-wide and eliminations	-31	-33	-109	-109	-156	-156
Group	343	337	954	986	1,241	1,273

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Operating margin excl IAC, %	2015	2016	2015	2016	2015	2015/16
Nordic	13.9	13.7	13.6	14.1	13.3	13.6
UK	10.6	11.1	8.9	9.6	9.3	9.8
Central Europe	9.0	4.7	6.2	2.1	5.1	2.0
Group	10.7	10.4	9.5	9.6	9.3	9.4

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Operating profit, SEK m	2015	2016	2015	2016	2015	2015/16
Nordic	172	185	577	619	749	791
UK	163	166	413	452	567	606
Central Europe	39	19	73	24	-15	-64
Group-wide and eliminations	-31	-33	-109	-109	-156	-156
Group	343	337	954	986	1,145	1,177

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Operating margin, %	2015	2016	2015	2016	2015	2015/16
Nordic	13.9	13.7	13.6	14.1	13.3	13.6
UK	10.6	11.1	8.9	9.6	9.3	9.8
Central Europe	9.0	4.7	6.2	2.1	-0.9	-4.1
Group	10.7	10.4	9.5	9.6	8.6	8.7

Quarterly data per region

		2015				2016
Net sales excl IAC, SEK m	I	II	III	IV	I	II	III
Nordic	1,385	1,609	1,237	1,421	1,398	1,626	1,355
UK	1,522	1,571	1,535	1,471	1,578	1,633	1,495
Central Europe	345	396	432	415	349	408	403
Group-wide and eliminations	-1	-1	0	-1	-2	0	-1
Group	3,251	3,575	3,204	3,306	3,323	3,667	3,252
		2015				2016
Net sales, SEK m	I	II	III	IV	I	II	III
Nordic	1,385	1,609	1,237	1,421	1,398	1,626	1,355
UK	1,522	1,571	1,535	1,471	1,578	1,633	1,495
Central Europe	345	396	432	411	349	408	403
Group-wide and eliminations	-1	-1	0	-1	-2	0	-1
Group	3,251	3,575	3,204	3,302	3,323	3,667	3,252
Gross profit excl IAC, SEK		2015				2016
m	I	II	III	IV	I	II	III
Nordic	550	659	491	554	548	673	537
UK	604	636	631	592	621	636	573
Central Europe	140	170	184	168	146	167	161
Group-wide and eliminations	5	4	5	2	6	5	7
Group	1,299	1,469	1,311	1,316	1,321	1,481	1,278
		2015				2016
Gross margin excl IAC, %	I	II	III	IV	I	II	III
Nordic	39.7	41.0	39.7	39.0	39.2	41.4	39.6
UK	39.7	40.5	41.1	40.2	39.4	38.9	38.3
Central Europe	40.6	42.9	42.6	40.5	41.8	40.9	40.0
Group	40.0	41.1	40.9	39.8	39.8	40.4	39.3
		2015
						2016
Gross profit, SEK m	I	II	III	IV	I	II	III
Nordic	550	659	491	554	548	673	537
UK	604	636	631	592	621	636	573
Central Europe Group-wide and eliminations	140 5	170 4	184 5	131 2	146 6	167 5	161 7
Group	1,299	1,469	1,311	1,279	1,321	1,481	1,278
		2015				2016
Gross margin, %	I	II	III	IV	I	II	III
Nordic	39.7	41.0	39.7	39.0	39.2	41.4	39.6
UK	39.7	40.5	41.1	40.2	39.4	38.9	38.3
Central Europe	40.6	42.9	42.6	31.9	41.8	40.9	40.0
Group	40.0	41.1	40.9	38.7	39.8	40.4	39.3

Quarterly data per region, cont.

Operating profit excl IAC,		2015				2016
SEK m	I	II	III	IV	I	II	III
Nordic	151	254	172	172	163	271	185
UK	94	156	163	154	111	175	166
Central Europe	7	27	39	8	-3	8	19
Group-wide and eliminations	-41	-37	-31	-47	-36	-40	-33
Group	211	400	343	287	235	414	337
		2015				2016
Operating margin excl IAC, %	I	II	III	IV	I	II	III
Nordic	10.9	15.8	13.9	12.1	11.7	16.7	13.7
UK	6.2	9.9	10.6	10.5	7.0	10.7	11.1
Central Europe	2.0	6.8	9.0	1.9	-0.9	2.0	4.7
Group	6.5	11.2	10.7	8.7	7.1	11.3	10.4
		2015
						2016
Operating profit, SEK m Nordic	I 151	II 254	III 172	IV 172	I 163	II 271	III 185
UK	94	156	163	154	111	175	166
Central Europe	7	27	39	-88	-3	8	19
Group-wide and eliminations	-41	-37	-31	-47	-36	-40	-33
Group	211	400	343	191	235	414	337
		2015				2016
Operating margin, %	I	II	III	IV	I	II	III
Nordic	10.9	15.8	13.9	12.1	11.7	16.7	13.7
UK	6.2	9.9	10.6	10.5	7.0	10.7	11.1
Central Europe	2.0	6.8	9.0	-21.4	-0.9	2.0	4.7

Reconciliation of alternative performance measures

Nobia presents certain financial performance measures in the interim report that are not defined according to IFRS, known as alternative performance measures. Nobia believes that these measures provide valuable complementary information to investors and the company's management since they facilitate assessments of trends and the company's performance. Because not all companies calculate performance measures in the same way, these are not always comparable with those measures used by other companies. Consequently, the performance measures are not to be seen as replacements for measures defined according to IFRS. For definitions of the performance measures that Nobia uses, see page 25.

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Net sales excl IAC SEKm	2015	2016	2015	2016	2015	2015/16
Net sales	3,204	3252	10,030	10,242	13,332	13,544
Items affecting comparability	–	–	–	–	4	4
Net sales excl IAC SEKm	3,204	3,252	10,030	10,242	13,336	13,548
	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Gross profit excl IAC SEKm	2015	2016	2015	2016	2015	2015/16
Gross profit	1,311	1278	4,079	4,080	5,358	5,359
Items affecting comparability	–	–	–	–	37	37
Gross profit excl IAC	1,311	1,278	4,079	4,080	5,395	5,396
% of sales excl IAC	40.9%	39.3%	40.7%	39.8%	40.5%	39.8%
Operating profit before depreciation and impairment excl IAC SEKm	Jul-Sep 2015	2016	Jan-Sep 2015	2016	Jan-Dec 2015	Oct-Sep 2015/16
Operating profit	343	337	954	986	1,145	1,177
Depreciation and impairment excl IAC	84	77	259	249	336	326
Depreciation and impairment IAC	–	–	–	–	10	10
Operating profit before depreciation and impairment	427	414	1,213	1,235	1,491	1,513
IAC excl depreciation and impairment	–	–	–	–	86	86
Operating profit before depreciation and impairment excl IAC	427	414	1,213	1,235	1,577	1,599

	Jul-Sep		Jan-Sep		Jan-Dec	Oct-Sep
Operating profit excl IAC SEKm	2015	2016	2015	2016	2015	2015/16
Operating profit	343	337	954	986	1,145	1,177
Items affecting comparability	–	–	–	–	96	96
Operating profit excl IAC	343	337	954	986	1241	1273
% of sales excl IAC	10.7%	10.4%	9.5%	9.6%	9.3%	9.4%

Reconciliation of alternative performance measures, cont.

	30 Sep		31 Dec
Net debt SEKm	2015	2016	2015
Provisions for pensions (IB)	863	1,166	732
Other long-term liabilities, interest-bearing (IB)	809	809	811
Current liabilities, interest-bearing (IB)	4	2	4
Interest-bearing liabilities	1,676	1,977	1,547
Long-term receivables, interest -bearing (IB)	-2	-4	-3
Current receivables, interest-bearing (IB)	-3	-2	-5
Cash and cash equivalents (IB)	-863	-812	-765
Interest-bearing assets	-868	-818	-773
Net debt	808	1,159	774
	30 Sep		31 Dec
Operating capital SEK m	2015	2016	2015
Total assets	8,232	8,360	8,069
Other provisions	-140	-95	-122
Deferred tax liabilities	-141	-134	-133
Current liabilities	-2,538	-2,604	-2,442
Liabilities attributable to assets held for sale	-4	-1	-3

Non-interest-bearing liabilities	-2,823	-2,834	-2,700
Capital employed	5,410	5,526	5,369
Interest-bearing assets	-868	-818	-773
Operating capital	4,542	4,708	4,596

	Jan-Dec	Oct-Sep
Average operating capital SEK m	2015	2015/16
OB Operating capital	4,402	4,541
OB Net assets discontinued operations	-232	-4
CB Operating capital	4,596	4,708
CB Net assets discontinued operations	-5	-3
Average operating capital before adjustments of acquistion and divestments	4,381	4,621
Adjustment for acquisitions and divestments not occurred in the middle of the period	-118	147
Average operating capital	4,263	4,768
	Jan-Dec	Oct-Sep
Average equity SEK m	2015	2015/16
OB Equity attributable to Parent Company shareholders	3,191	3,727
CB Equity attributable to Parent Company shareholders	3,818	3,546
Average equity before adjustment of increases and decreases in capital	3,505	3,637

Adjustment for increases and decreases in capital not occured in the middle of the period -67 1 Average equity 3,438 3,638

Definitions

Return on shareholders' equity

Net profit for the period as a percentage of average shareholders' equity attributable to Parent Company shareholders based on opening and closing balances for the period. 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 based on opening and closing balances for the period 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 to shareholders

For further information

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 Friday, 28 October at 3:00 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)8 505 564 74
• From the UK: +44 (0)203 364 5374
• From the US: +1 855 753 22 30

Financial calendar

7 February 2017	Interim report January-December 2016
6 April 2017	2017 Annual General Meeting
28 April 2017	Interim report January-March 2017

This information is such that Nobia is obliged to made public pursuant to the EU's Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, on 28 October 2016 at 1:00 p.m. CET.

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 6,600 employees and net sales of about SEK 13 billion. The Nobia share is listed on the Nasdaq Stockholm under the ticker NOBI. Website: www.nobia.com

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