Quarterly Report • Apr 27, 2018
Quarterly Report
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| Jan-Mar | Jan-Dec | Apr-Mar | ||||
|---|---|---|---|---|---|---|
| 2017 | 2018 | Change, % | 2017 | 2017/2018 | Change, % | |
| Net sales, SEK m | 3,315 | 3,173 | -4 | 12,744 | 12,602 | -1 |
| Gross margin, % | 38.9 | 39.7 | – | 39.3 | 39.5 | – |
| Operating margin before depreciation and impairment, % |
10.4 | 10.4 | – | 12.3 | 12.4 | – |
| Operating profit (EBIT), SEK m | 273 | 255 | -7 | 1,286 | 1,268 | -1 |
| Operating margin, % | 8.2 | 8.0 | – | 10.1 | 10.1 | – |
| Profit after financial items, SEK m | 263 | 247 | -6 | 1,250 | 1,234 | -1 |
| Profit/loss after tax , SEK m | 205 | 193 | – | 1,015 | 1,003 | -1 |
| Earnings/loss per share, after dilution, SEK | 1.22 | 1.14 | – | 6.02 | 5.95 | -1 |
| Operating cash flow, SEK m | 101 | 64 | -37 | 706 | 669 | -5 |
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 and Ewe, FM and Intuo in Austria. Nobia generates profitability by combining economies of scale with attractive kitchen offerings. The Group has approximately 6,100 employees and net sales of about SEK 13 billion. The Nobia share is listed on Nasdaq Stockholm under the ticker NOBI. Website: www.nobia.com
The sales trend for the quarter was partly affected by fewer delivery days compared with the preceding year, driven by the calendar effect o f Easter. In addition, our project sales were adversely affected by the cold winter, while comparative figures were impacted by our ceased business with Homebase and last year's large project deliveries to Battersea Power Station in the UK. Adjusted for these factors, currency -adjusted growth was unchanged .
Conditions in the Nordic region remain favourable and our position is strong. Ahead, we believe that the Danish and Finnish markets will take over the role that Sweden has had as the growth engine of the region. For example, in the first quarter we were chosen by the construction company SRV as the kitchen and cabinet supplier to Majakka, which will be the tallest tower in Finland with 283 apartments, located in Kalasatama, Helsinki and scheduled for completion in spring 2019. This is our largest ever order in Finland .
The market in the UK remains characterised by macroeconomic uncertainty. However, our UK operations are well -diversified since our kitchens are sold in several channels . The repositioning of Magnet has been successful and we deem that Magnet captured market shares during the important winter campaign in the UK , when almost half of annual consumer sales take place .
Our Austrian operations have during the quarter undergone a review, that has resulted in adjustments to the customer offering. The operations are now performing in the right direction, although it may take time before the measures get a full effect on earnings. In May, Ralph Kobsik will take office as EVP and Head of Central Europe .
Despite the sales decline and weak currency, we maintained an operating margin of more than 10 per cent for the past 12 months. There is continued potential to drive margin improvements. For example, we are now reviewing our production structure, which we assess can be further streamlined, and we continue with our initiative to reduce the complexity of our product portfolio .
Many of our brands updated their websites during the quarter and the roll -out of our omnichannel store concept is continuing. Marbodal 's renovated store in central Gothenburg is the latest in a series of stores that have been designed following this concept .
Dividends totalling SEK 1,180 million were paid on 17 April. Even after this transaction the company has a very strong financial position that enable s acquisitions and investments for growth. The targets are clear: sales are to grow by an average of 5 per cent per year and we will deliver continually improved profitability.
Morten Falkenberg President and CEO
The overall Nordic kitchen market is deemed to have strengthened compared with the first quarter of 2017, driven by higher completion of new housing construction.
The UK kitchen market is deemed to have weakened due to increased macroeconomic uncertainty. The market for new housing construction in the UK remained strong, although poor weather conditions caused project delays in the first quarter.
The kitchen market in Central Europe is deemed to have grown slightly compared with the year-earlier period.
The Group's net sales amounted to SEK 3,173 million (3,315). Currency gains of SEK 62 million impacted sales. Organic sales growth was a negative 6 per cent (pos: 10), primarily due to lower sales in the UK and fewer delivery days compared with the preceding year.
The gross margin strengthened to 39.7 per cent (38.9), mainly driven by higher sales values and an improved sales mix.
Operating profit declined due to lower sales volumes and currency losses, which were only partly offset by higher sales values and lower costs compared with during the first quarter 2017 when cabinets with the K21 suspension system were recalled and the HTH GO concept was launched.
The return on operating capital was 29.5 per cent in the past twelve-month period (Jan-Dec 2017: 31.5). The return on equity was 26.1 per cent in the past twelve-month period (Jan-Dec 2017: 27.8).
Operating cash flow declined, primarily as a result of a negative change in working capital and increased investments compared with the first quarter of 2017.
Investments in fixed assets amounted to SEK 74 million (56), of which SEK 18 million (19) pertained to store investments.
| Jan-Mar | ||||
|---|---|---|---|---|
| % | SEK m | |||
| 2017 | 3,315 | |||
| Organic growth | -6 | -204 | ||
| – of which Nordic region | -1 | -18 | ||
| – of which UK region | -12 | -187 | ||
| – of which CE region | 1 | 1 | ||
| Currency effect | 2 | 62 | ||
| 2018 | -4 | 3,173 | ||
| Jan-Mar | |||||
|---|---|---|---|---|---|
| Trans | Trans | ||||
| lation | action | Total | |||
| SEK m | effect | effect | effect | ||
| Nordic region | 5 | -15 | -10 | ||
| UK region | 0 | -5 | -5 | ||
| CE region | 0 | 0 | 0 | ||
| Group | 5 | -20 | -15 | ||
| Renovated or relocated | – |
|---|---|
| Newly opened/closed, net | -3 |
| Number of own kitchen stores | 261 |
| Nordic | UK | Central Europe | eliminations | Group-wide and | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan-Mar | Jan-Mar | Jan-Mar | |||||||
| SEK m | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | Change, % |
| Net sales from external customers |
1,672 | 1,682 | 1,527 | 1,367 | 116 | 124 | – | – | 3,315 | 3,173 | -4 |
| Net sales from other regions | 0 | 0 | – | – | 0 | 0 | 0 | 0 | – | – | – |
| Net sales | 1,672 | 1,682 | 1,527 | 1,367 | 116 | 124 | 0 | 0 | 3,315 | 3,173 | -4 |
| Gross profit | 671 | 669 | 570 | 543 | 36 | 35 | 14 | 13 | 1,291 | 1,260 | -2 |
| Gross margin, % | 40.1 | 39.8 | 37.3 | 39.7 | 31.0 | 28.2 | – | – | 38.9 | 39.7 | – |
| Operating profit/loss | 212 | 213 | 96 | 79 | 4 | 2 | -39 | -39 | 273 | 255 | -7 |
| Operating margin, % | 12.7 | 12.7 | 6.3 | 5.8 | 3.4 | 1.6 | – | – | 8.2 | 8.0 | – |
Net sales in the Nordic region increased 1 per cent to SEK 1,682 million (1,672). Organic growth was a negative 1 per cent (16).
Sales were negatively impacted by fewer delivery days compared with the preceding year. Both project sales and consumer sales declined in Denmark and Norway, and increased in Sweden and Finland.
The gross margin declined to 39.8 per cent (40.1) as a result of currency losses and higher material prices, which were partly offset by higher sales values.
Operating profit amounted to SEK 213 million (212), positively impacted by higher sales values and lower costs, and negatively affected by currency losses, higher material prices and lower volumes.
Net sales in the UK declined 10 per cent to SEK 1,367 million (1,527). Organic growth was a negative 12 per cent (pos: 6).
The decline in sales was primarily attributable to lower B2B sales, driven by the ceased business with Homebase that had sales of about SEK 60 million in the first quarter of 2017. The reduction in sales was also attributable to lower project deliveries than in the year-earlier quarter and slightly lower sales via Magnet's stores.
Gross margin improved to 39.7 per cent (37.3) as a result of a more favourable sales mix and higher sales values, which were partly offset by higher material prices.
Operating profit declined to SEK 79 million (96), primarily due to reduced sales volumes, which could not be compensated by the improved gross margin.
Net sales in the Central Europe region increased 7 per cent to SEK 124 million (116). Organic growth was 1 per cent (neg: 2).
Sales growth was the result of both increased sales in Austria and increased export sales.
The gross margin weakened to 28.2 per cent (31.0) due to a changed sales mix.
Operating profit amounted to SEK 2 million (4), negatively affected by a changed sales mix and positively impacted by increased volumes and higher sales values.
Existing loan facilities comprise a syndicated bank loan of SEK 1,000 million expiring in July 2019. The bank loan was unutilised as at the end of the first quarter, but was utilised in the amount of about SEK 650 million in April 2018.
Net debt including pension provisions amounted to a negative SEK 19 million (pos: 396) at the end of the first quarter. The debt/equity ratio was 0 per cent (11).
Net financial items amounted to an expense of SEK 8 million (expense: 10). Net financial items include the net of returns on pension assets and interest expense on pension liabilities corresponding to an expense of SEK 4 million (expense: 6). The net interest expense amounted to SEK 4 million (expense: 4).
No acquisitions or divestments took place during the period.
No earnings from discontinued operations are recognised for the first quarter of 2018. Earnings from discontinued operations after tax for the first quarter of 2017 amounted to SEK 0 million, of which SEK 0 million pertained to Poggenpohl, which was divested on 31 January 2017, and SEK 0 million was related to the stores that had been acquired from franchisees with the intention of subsequently selling on.
For more information about the about Nobia's discontinued operations see page 41 in the 2017 Annual Report.
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.
No items affecting comparability (–) were recognised for the first quarter of 2018.
The number of employees on 31 March 2018 was 6,126 (6,106).
Fredrik Nyström will take office as Executive Vice president and Head of Commercial Sweden on 1 May 2018. Fredrik Nyström has held key positions at Nobia for more than ten years, most recently as Head of Strategy.
Annica Hagen, Executive Vice president and Head of Commercial Sweden, will go on maternity leave and return to Nobia in a different position.
Ralph Kobisk will take office as Executive Vice President and Head of Central Europe on 1 May 2018. Ralph Kobisk has previously served as Head of International Markets at appliances company V-Zug and has also held senior positions at BSH Bosch and Siemens Home Appliances.
Erkka Lumme, Executive Vice President and Head of Commercial Finland, will leave Nobia on 20 May 2018. The recruitment process for his replacement is under way.
The Chief Marketing Officer role has been removed and as a consequence Kim Lindqvist, Executive Vice President and Chief Marketing Officer left Nobia on 1 April 2018.
The Annual General Meeting of Nobia was held on 10 April 2018 in Stockholm, Sweden. The Annual General Meeting approved the proposed dividend to shareholders for 2017 of SEK 3.50 per share, and an extra dividend of SEK 3.50 per share, totalling approximately SEK 1,108 million. The dividend was paid on 17 April.
The Annual General Meeting resolved on the number of Board members as nine and re-elected the Board members Morten Falkenberg, Lilian Fossum Biner, Nora Førisdal Larssen, Stefan Jacobsson, Ricard Wennerklint, Christina Ståhl, Jill Little and George Adams. Hans Eckerström was elected as a new Board member and Chairman of the Board. Tomas Billing had declined reelection.
Deloitte AB was re-elected as auditors until the next Annual General Meeting, with Daniel de Paula as auditorin-charge.
The Annual General Meeting appointed a Nomination Committee comprising Tomas Billing (Chairman), representing Nordstjernan; Torbjörn Magnusson, representing If Skadeförsäkring; Mats Gustafsson, representing Lannebo fonder; and Arne Lööw, representing the Fourth Swedish National Pension Fund, for the period until the close of the next Annual General Meeting in 2019.
The Annual General Meeting resolved on the introduction of a Performance Share Plan in accordance with the Board's proposal. The plan includes approximately 100 people, comprising senior executives and people in senior management positions. Participation in the plan involves, for example, a downward adjustment of the participant's maximum variable remuneration. Participants are allocated performance-based share rights which, after a threeyear vesting period, provide entitlement to shares, given that certain conditions are met, including a financial performance target. In view of the Performance Share Plan, the Annual General Meeting resolved on the transfer of not more than 1,500,000 treasury shares to the plan participants.
The Annual General Meeting authorised the Board of Directors, during the period prior to the next Annual General Meeting, to decide on the acquisition and transfer of treasury shares.
The Annual General Meeting resolved to reduce Nobia's share capital by a maximum of SEK 1,666,641 by withdrawing a maximum of 5,000,000 treasury shares for transfer to non-restricted shareholders' equity. The treasury shares that Nobia will hold after the withdrawal will be used to safeguard Nobia's commitments under the Group's share-based remuneration plans.
A detailed description of the resolutions passed at the Annual General Meeting is available on the Nobia website.
Based on the resolution of Nobia's Annual General Meeting, Nobia will transfer 104,367 shares to the participants of the 2015 Performance Share Plan after the publication of the interim report for the first quarter of 2018.
The 2015 Performance Share Plan encompasses approximately 100 senior executives and is 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. Since the established target for the 2015 Plan was achieved, both matching and performance shares will be allotted. This transfer will be made free-of-charge.
At 31 March 2018, Nobia's holding of treasury shares amounted to 6,709,571 shares. Following the transfer of shares under the 2015 Performance Share Plan, Nobia's holding of treasury shares will amount to 6,605,204.
Nobia is exposed to strategic, operating and financial risks, which are described on pages 46-48 of the 2017 Annual Report.
During the first quarter of 2018, demand in the Nordic region and Central Europe is deemed to have improved compared with the preceding year. In the UK, macroeconomic uncertainty as a result of Brexit had a slightly negative impact on the kitchen market. 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 31 March 2018 contained goodwill of SEK 2,488 million (2,349). The value of this asset item is tested if there are any indications of a decline in value and at least once annually.
Stockholm, 27 April 2018
Morten Falkenberg President and CEO
Nobia AB, Corporate Registration Number 556528-2752
This interim report is unaudited.
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| SEK m | 2017 | 2018 | 2017 | 2017/2018 |
| Net sales | 3,315 | 3,173 | 12,744 | 12,602 |
| Cost of goods sold | -2,024 | -1,913 | -7,730 | -7,619 |
| Gross profit | 1,291 | 1,260 | 5,014 | 4,983 |
| Selling and administrative expenses | -1,019 | -1,015 | -3,751 | -3,747 |
| Other income/expenses | 1 | 10 | 23 | 32 |
| Operating profit | 273 | 255 | 1,286 | 1,268 |
| Net financial items | -10 | -8 | -36 | -34 |
| Profit/loss after financial items | 263 | 247 | 1,250 | 1,234 |
| Tax | -58 | -54 | -256 | -252 |
| Profit/loss after tax from continuing operations | 205 | 193 | 994 | 982 |
| Profit/loss from discontinued operations, net after tax | 0 | – | 21 | 21 |
| Profit/loss after tax | 205 | 193 | 1,015 | 1,003 |
| Total profit attributable to: | ||||
| Parent Company shareholders | 205 | 193 | 1,015 | 1,003 |
| Non-controlling interests | 0 | – | 0 | – |
| Total profit/loss | 205 | 193 | 1,015 | 1,003 |
| Total depreciation¹ | 71 | 74 | 285 | 288 |
| Total impairment¹ | – | – | 2 | 2 |
| Gross margin, % | 38.9 | 39.7 | 39.3 | 39.5 |
| Operating margin, % | 8.2 | 8.0 | 10.1 | 10.1 |
| Return on operating capital, % | – | – | 31.5 | 29.5 |
| Return on shareholders equity, % | – | – | 27.8 | 26.1 |
| Earnings per share before dilution, SEK2 | 1.22 | 1.14 | 6.02 | 5.95 |
| Earnings per share after dilution, SEK2 | 1.22 | 1.14 | 6.02 | 5.95 |
| Number of shares at period end before dilution, 000s3 | 168,473 | 168,584 | 168,584 | 168,584 |
| Average number of shares before dilution, 000s3 | 168,473 | 168,584 | 168,547 | 168,565 |
| Number of shares after dilution at period end, 000s3 | 168,710 | 168,703 | 168,712 | 168,713 |
| Average number of shares after dilution, 000s3 | 168,710 | 168,703 | 168,702 | 168,702 |
1 Excluding depreciation and impairment recognised on the line Profit/loss from discontinued operations, net after tax.
2 Earnings per share attributable to Parent Company shareholders.
3 Excluding treasury shares.
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| SEK m | 2017 | 2,018 | 2017 | 2017/2018 |
| Profit/loss after tax | 205 | 193 | 1,015 | 1,003 |
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Exchange-rate differences attributable to translation of foreign operations | -54 | 234 | -18 | 270 |
| Cash flow hedges before tax | 5 1 |
-5 2 |
14 3 |
4 |
| Tax attributable to change in hedging reserve for the period | 4 -1 |
5 1 |
6 -3 |
-1 |
| -50 | 230 | -7 | 273 | |
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit pension plans | 34 | 36 | 277 | 279 |
| Tax relating to remeasurements of defined benefit pension plans | -6 | -6 | -46 | -46 |
| 28 | 30 | 231 | 233 | |
| Other comprehensive income/loss | -22 | 260 | 224 | 506 |
| Total comprehensive income/loss | 183 | 453 | 1,239 | 1,509 |
| Total comprehensive income/loss attributable to: | ||||
| Parent Company shareholders | 183 | 453 | 1,239 | 1,509 |
| Non-controlling interests | 0 | – | 0 | – |
| Total comprehensive income/loss | 183 | 453 | 1,239 | 1,509 |
1 Reversal recognised in profit and loss amounts to SEK 5 million. New provision amounts to SEK 0 million.
2 Reversal recognised in profit and loss amounts to a negative SEK 10 million. New provision amounts to SEK 5 million.
3 Reversal recognised in profit and loss amounts to SEK 5 million. New provision amounts to SEK 9 million.
4 Reversal recognised in profit and loss amounts to a negative SEK 1 million. New provision amounts to SEK 0 million.
5 Reversal recognised in profit and loss amounts to SEK 2 million. New provision amounts to a negative SEK 1 million.
6 Reversal recognised in profit and loss amounts to a negative SEK 1 million. New provision amounts to a negative SEK 2 million.
| 31 Mar | 31 Dec | ||
|---|---|---|---|
| SEK m | 2017 | 2018 | 2017 |
| ASSETS | |||
| Goodwill | 2,349 | 2,488 | 2,361 |
| Other intangible fixed assets | 118 | 141 | 149 |
| Tangible fixed assets | 1,367 | 1,438 | 1,367 |
| Long-term receivables, interest-bearing (IB) | 3 | 4 | 5 |
| Long-term receivables | 28 | 35 | 34 |
| Deferred tax assets | 166 | 112 | 118 |
| Total fixed assets | 4,031 | 4,218 | 4,034 |
| Inventories | 894 | 985 | 908 |
| Accounts receivable | 1,529 | 1,506 | 1,282 |
| Current receivables, interest-bearing (IB) | 2 | 31 | 18 |
| Other receivables | 371 | 507 | 465 |
| Total current receivables | 1,902 | 2,044 | 1,765 |
| Cash and cash equivalents (IB) | 1,243 | 536 | 473 |
| Assets held for sale | 5 | – | – |
| Total current assets | 4,044 | 3,565 | 3,146 |
| Total assets | 8,075 | 7,783 | 7,180 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||
| Share capital | 58 | 58 | 58 |
| Other capital contributions | 1,483 | 1,488 | 1,486 |
| Reserves | -307 | -34 | -264 |
| Profit brought forward | 2,366 | 3,093 | 2,874 |
| Total shareholders' equity attributable to Parent Company shareholders | 3,600 | 4,605 | 4,154 |
| Total shareholders' equity | 3,600 | 4,605 | 4,154 |
| Provisions for pensions (IB) | 835 | 545 | 567 |
| Other provisions | 109 | 36 | 40 |
| Deferred tax liabilities | 100 | 88 | 89 |
| Other long-term liabilities, interest-bearing (IB) | 8 | 7 | 5 |
| Total long-term liabilities | 1,052 | 676 | 701 |
| Current liabilities, interest-bearing (IB) | 801 | 0 | 1 |
| Current liabilities | 2,621 | 2,502 | 2,324 |
| Liabilities attributable to assets held for sale | 1 | – | – |
| Total current liabilities | 3,423 | 2,502 | 2,325 |
| Total shareholders' equity and liabilities | 8,075 | 7,783 | 7,180 |
| BALANCE-SHEET RELATED KEY RATIOS | |||
| Equity/assets ratio, % | 45 | 59 | 58 |
| Debt/equity ratio, % | 11 | 0 | 2 |
| Net debt, closing balance, SEK m | 396 | -19 | 77 |
| Operating capital, closing balance, SEK m | 3,996 | 4,586 | 4,231 |
| Capital employed, closing balance, SEK m | 5,244 | 5,157 | 4,727 |
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 2017 | 58 | 1,481 | -253 | -4 | 2,133 | 3,415 | 4 | 3,419 |
| Profit/loss for the period | – | – | – | – | 205 | 205 | 0 | 205 |
| Other comprehensive income/loss for the period |
– | – | -54 | 4 | 28 | -22 | 0 | -22 |
| Total comprehensive income for the period |
– | – | -54 | 4 | 233 | 183 | 0 | 183 |
| Change in non-controlling interests |
– | – | – | – | – | – | -4 | -4 |
| Allocation of share saving schemes |
– | 2 | – | – | – | 2 | – | 2 |
| Closing balance, 31 March 2017 |
58 | 1,483 | -307 | 0 | 2,366 | 3,600 | – | 3,600 |
| Opening balance, 1 January 2018 | 58 | 1,486 | -271 | 7 | 2,874 | 4,154 | – | 4,154 |
| New accounting principles, financial instruments 1 |
– | – | – | – | -4 | -4 | – | -4 |
| Restated opening balance, 1 January 2018 |
58 | 1,486 | -271 | 7 | 2,870 | 4,150 | – | 4,150 |
| Profit/loss for the period | – | – | – | – | 193 | 193 | – | 193 |
| Other comprehensive income/loss for the period |
– | – | 234 | -4 | 30 | 260 | – | 260 |
| Total comprenhensive income/loss for the period |
– | – | 234 | -4 | 223 | 453 | – | 453 |
| Allocation of share saving schemes |
– | 2 | – | – | – | 2 | – | 2 |
| Closing balance, 31 March 2018 |
58 | 1,488 | -37 | 3 | 3,093 | 4,605 | – | 4,605 |
1 See IFRS 9 Financial instruments on pages 13-14.
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| SEK m | 2017 | 2018 | 2017 | 2017/18 |
| Operating activities | ||||
| Operating profit | 273 | 255 | 1,286 | 1,268 |
| Operating profit/loss for discontinued operations | -1 | – | 20 | 21 |
| Depreciation/Impairment | 1 71 |
2 74 |
3 287 |
290 |
| Adjustments for non-cash items | -24 | 7 | -30 | 1 |
| Tax paid | -49 | -77 | -248 | -276 |
| Change in working capital | -117 | -127 | -328 | -338 |
| Cash flow from operating activities | 153 | 132 | 987 | 966 |
| Investing activities | ||||
| Investments in fixed assets | -56 | -74 | -319 | -337 |
| Other items in investing activities | 4 | 6 | 38 | 40 |
| Interest received | 1 | 0 | 3 | 2 |
| Change in interest-bearing assets | -1 | -12 | -19 | -30 |
| Divestment of operations | -79 | – | -93 | -14 |
| Cash flow from investing activities | -131 | -80 | -390 | -339 |
| Operating cash flow before acquisition/divestment of operations |
||||
| interest, increase/decrease of interest-bearing assets | 101 | 64 | 706 | 669 |
| Total cashflow from operating and investing activities | 22 | 52 | 597 | 627 |
| Financing activities | ||||
| Interest paid | -5 | -3 | -10 | -8 |
| Change in interest-bearing liabilities | 4 -26 |
5 -9 |
6 -872 |
-855 |
| Dividend | – | – | -505 | -505 |
| Cash flow from financing activities | -31 | -12 | -1,387 | -1,368 |
| Cash flow for the period excluding exchange-rate differences in cash and cash equivalents |
-9 | 40 | -790 | -741 |
| Cash and cash equivalents at beginning of the period | 1,266 | 473 | 1,266 | 1,243 |
| Cash flow for the period | -9 | 40 | -790 | -741 |
| Exchange-rate differences in cash and cash equivalents | -14 | 23 | -3 | 34 |
| Cash and cash equivalents at period-end | 1,243 | 536 | 473 | 536 |
1 No impairment took place during the period.
2 No impairment took place during the period
3 Impairment amounted to SEK 2 million and pertained to kitchen displays.
4 No repayment or raising of loans took place during the period.
5 No repayment or raising of loans took place during the period
6 Repayment of loans totalling SEK 800 million.
| Jan-Mar | Apr-Mar | |||
|---|---|---|---|---|
| SEK m | 2017 | 2018 | 2017 | 2017/18 |
| Opening balance | 493 | 77 | 493 | 396 |
| Divestment of operations | 17 | – | 30 | 13 |
| Translation differences | 10 | -1 | -3 | -14 |
| Operating cash flow | -101 | -64 | -706 | -669 |
| Interest paid, net | 4 | 3 | 7 | 6 |
| Remeasurements of defined benefit pension plans | -34 | -36 | -277 | -279 |
| Other change in pension liabilities | 7 | 2 | 28 | 23 |
| Dividend | – | – | 505 | 505 |
| Closing balance | 396 | -19 | 77 | -19 |
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 2017 Annual Report, except for the recognition of revenue from contracts with customers (IFRS 15) and financial instruments (IFRS 9). A description of the new accounting policies is provided in the 2017 Annual Report.
IFRS 15 is a comprehensive standard for determining the amount of revenue to be recognised and when this revenue is to be recognised. It replaces IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes.
Nobia applies IFRS 15 from 1 January 2018 and applied the introduction retrospectively. In 2017, it conducted a Groupwide review of Nobia's revenue streams to assess the effects of IFRS 15. The primary conclusions from this review are described below.
Under IFRS 15, the revenue is recognised at the point in time control over the goods passes to the customer. Revenue recognition for certain project sales that include installations of kitchens will be affected by the new standard. In a few of Nobia's units, the revenue for goods was previously recognised when the installation was completed. From 2018, revenue for kitchen products will be recognised under IFRS 15 upon delivery and when control over the goods passes to the customer, and revenue for the installation will be recognised separately when it is completed. Altogether, this will result in revenue attributable to goods of this type of project sales being recognised slightly earlier in the future. The time between delivery and installation is very brief, however, since the deliveries are governed by customer orders. Additionally, this type of project sales occurs only by way of exception in the markets where Nobia is active; the effects of the transition will therefore be negligible.
Nobia applies IFRS 15 retrospectively using what is known as the full retrospective method. The aggregate effect of the transition on revenue in the Group for 2017 has been estimated at approximately negative SEK 5 million, and on closing equity at approximately negative SEK 2 million, which is not deemed to be material in relation to the Group's total revenue of SEK 12,744 million for 2017. The revenue for the 2017 fiscal year was not restated for comparison with 2018, since the true and fair view, and thus the assessment of our investors, of Nobia's historical or future financial performance is not deemed to be impacted. Sales for the first quarter of 2017 would have been SEK 6 million lower if the Group had restated 2017 and sales for the first quarter of 2018 would have been SEK 1 million lower.
Nobia recognises revenue for kitchen products and other products at a certain point in time, while installation services are recognised over time in line with the installation being performed. Installation services comprise about 5-6 per cent of Nobia's total sales. For more information, refer to page 18.
IFRS 9, which replaces IAS 39 Financial instruments: Recognition and Measurement, contains rules for recognition, classification and measurement, impairment, derecognition and general hedge accounting.
Nobia applies IFRS 9 from 1 January 2018 and in 2017 it conducted a Group-wide review of Nobia's financial instruments and related business models to assess the effects of IFRS 9. Nobia's assessment is that IFRS 9 will only entail an increase regarding expected credit losses on accounts receivable. From 2018, Nobia bases any impairment requirements on an expected credit losses model and no longer bases impairment on loss events occurred. The effect for 2017 is expected to amount to approximately SEK 5 million. In calculating expected credit losses, Nobia has taken into consideration historical bad debt losses and analysis of the respective customer segments, and observed the macroeconomic effects on customers' conditions such as the impact of Brexit on the local market.
As the transition method, Nobia has chosen to utilise the exception to not restate comparable information for previous periods regarding classification and measurement (including impairment). Differences in carrying amounts attributable to financial assets and liabilities in connection with the introduction of IFRS 9 will be recognised in profit brought forward at 1 January 2018 totalling a negative SEK 5 million before tax and a negative SEK 4 million net after tax. See table on next page.
| 31 Dec 2017 (SEK m) | Before adjustment | Adjustment | After adjustment |
|---|---|---|---|
| Accounts receivable | 1,282 | -5 | 1,277 |
| Deferred tax assets | 118 | 1 | 119 |
| Profit brought forward | 2,874 | -4 | 2,870 |
For other disclosures regarding financial instrument, refer to Note 3 and the 2017 Annual Report.
IFRS 16 Leases will replace existing IFRSs related to recognising leases such as IAS 17 Leases and IFRIC 4 Determining Whether an Arrangement Contains a Lease. The Group plans to apply the standard from 1 January 2019.
The Group has started to assess the potential effects of the standard but has not yet performed a more detailed analysis. The final effect of the introduction of IFRS 16 on the financial statements will depend on future financial circumstances, including the composition of the Group's lease portfolio at that time, the Group's most recent assessment of whether it will make use of any options to extend leases and the extent to which the Group will decide to use relaxation rules and exemptions from recognition in the balance sheet/statement of financial position.
The most significant effects identified to date are that the Group will need to recognise new assets and liabilities for its operating leases regarding stores, plants and warehouse premises. An indication of the scope under the current circumstances can be obtained from the disclosures on operating leases provided in Note 11 in the 2017 Annual Report.
Segment information, pages 3 and 4. Loan and shareholder's equity transactions, pages 5 and 6. Divestment of operations, page 5. Items affecting comparability, page 5. Net sales by product group, page 18.
Nobia's financial assets essentially comprise non-interest-bearing and interest-bearing receivables whereby cash flows only represent payment for the initial investment and, where applicable, for the time value and interest. These are intended to be held to maturity and are recognised at amortised cost, which is a reasonable approximation of fair value. Financial liabilities are primarily recognised at amortised cost.
Financial instruments measured at fair value in the balance sheet are currency forward contracts comprised of assets at a value of SEK 39 million (31 Dec 2017: 50) and liabilities at a value of SEK 31 million (31 Dec 2017: 43). These items are measured according to level 2 of the fair value hierarchy, meaning based on indirect observable market data. Nobia's financial instruments are measured at fair value and included in the balance sheet on the rows "Other receivables" and "Current liabilities".
There is no sale and manufacturing of kitchens in the Parent Company. The Parent Company invoiced Group-wide services to subsidiaries in an amount of SEK 62 million (54) during the first quarter of 2018. The Parent Company's reported dividends from participations in Group companies totalled SEK 0 million (neg: 1).
| Jan-Mar | Jan-Dec | ||
|---|---|---|---|
| SEK m | 2017 | 2018 | 2017 |
| Net sales | 58 | 63 | 224 |
| Administrative expenses | -69 | -73 | -267 |
| Other income | 0 | 1 | 5 |
| Other expenses | -4 | -1 | -9 |
| Operating profit/loss | -15 | -10 | -47 |
| Profit from shares in Group companies | -1 | 0 | 969 |
| Other financial income and expenses | -6 | 89 | -2 |
| Profit/loss after financial items | -22 | 79 | 920 |
| Tax | 0 | 0 | -31 |
| Profit/loss after tax | -22 | 79 | 889 |
| Parent Company balance sheet | 31 Mar | 31 Dec | |
| SEK m | 2017 | 2018 | 2017 |
| ASSETS | |||
| Fixed assets | |||
| Shares and participations in Group companies | 1,377 | 1,381 | 1,379 |
| Deferred tax assetts | 3 | 6 | 5 |
| Total fixed assets | 1,380 | 1,387 | 1,384 |
| Current assets |
| Current receivables | |||
|---|---|---|---|
| Accounts receivable | 18 | 2 | 1 |
| Receivables from Group companies | 2,910 | 2,946 | 2,839 |
| Other receivables | 17 | 83 | 44 |
| Prepaid expenses and accrued income | 40 | 47 | 52 |
| Cash and cash equivalents | 897 | 355 | 334 |
| Total current assets | 3,882 | 3,433 | 3,270 |
| Total assets | 5,262 | 4,820 | 4,654 |
| 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 | -391 | -385 | -385 |
| Profit brought forward | 1,772 | 2,153 | 1,262 |
| Profit/loss for the period | -22 | 79 | 889 |
| 1,411 | 1,899 | 1,818 | |
| Total shareholders' equity | 3,140 | 3,628 | 3,547 |
| Long term liabilities | |||
| Provisions for pensions | 16 | 18 | 17 |
| Deferred tax liabilities | 3 | 6 | 5 |
| Total long-term liabilities | 19 | 24 | 22 |
| Current liabilities | |||
| Liabilities to credit institutes | 800 | – | – |
| Accounts payable | 13 | 18 | 23 |
| Liabilities to Group companies | 1,240 | 1,074 | 956 |
| Current tax liabilities | 16 | 24 | 44 |
| Other liabilities | 14 | 31 | 42 |
| Accrued expenses and deferred income | 20 | 21 | 20 |
| Total current liabilities | 2,103 | 1,168 | 1,085 |
| Total shareholders' equity, provisions and liabilities | 5,262 | 4,820 | 4,654 |
| Jan-Mar | Jan-Dec | Apr-Mar | |||
|---|---|---|---|---|---|
| Net sales, SEK m | 2017 | 2018 | 2017 | 2017/18 | |
| Nordic | 1,672 | 1,682 | 6,516 | 6,526 | |
| UK | 1,527 | 1,367 | 5,710 | 5,550 | |
| Central Europe | 116 | 124 | 521 | 529 | |
| Group-wide and eliminations | 0 | 0 | -3 | -3 | |
| Group | 3,315 | 3,173 | 12,744 | 12,602 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Gross profit, SEK m | 2017 | 2018 | 2017 | 2017/18 |
| Nordic | 671 | 669 | 2,638 | 2,636 |
| UK | 570 | 543 | 2,172 | 2,145 |
| Central Europe | 36 | 35 | 152 | 151 |
| Group-wide and eliminations | 14 | 13 | 52 | 51 |
| Group | 1,291 | 1,260 | 5,014 | 4,983 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Gross margin, % | 2017 | 2018 | 2017 | 2017/18 |
| Nordic | 40.1 | 39.8 | 40.5 | 40.4 |
| UK | 37.3 | 39.7 | 38.0 | 38.6 |
| Central Europe | 31.0 | 28.2 | 29.2 | 28.5 |
| Group | 38.9 | 39.7 | 39.3 | 39.5 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Operating profit, SEK m | 2017 | 2018 | 2017 | 2017/18 |
| Nordic | 212 | 213 | 963 | 964 |
| UK | 96 | 79 | 454 | 437 |
| Central Europe | 4 | 2 | 12 | 10 |
| Group-wide and eliminations | -39 | -39 | -143 | -143 |
| Group | 273 | 255 | 1,286 | 1,268 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Operating margin, % | 2017 | 2018 | 2017 | 2017/18 |
| Nordic | 12.7 | 12.7 | 14.8 | 14.8 |
| UK | 6.3 | 5.8 | 8.0 | 7.9 |
| Central Europe | 3.4 | 1.6 | 2.3 | 1.9 |
| Group | 8.2 | 8.0 | 10.1 | 10.1 |
| 2017 | |||||
|---|---|---|---|---|---|
| Net sales, SEK m | I | II | III | IV | I |
| Nordic | 1,672 | 1,756 | 1,398 | 1,690 | 1,682 |
| UK | 1,527 | 1,520 | 1,377 | 1,286 | 1,367 |
| Central Europe | 116 | 133 | 131 | 141 | 124 |
| Group-wide and eliminations | 0 | -1 | -1 | -1 | 0 |
| Group | 3,315 | 3,408 | 2,905 | 3,116 | 3,173 |
| 2017 | ||||||
|---|---|---|---|---|---|---|
| Gross profit, SEK m | I | II | III | IV | I | |
| Nordic | 671 | 721 | 565 | 681 | 669 | |
| UK | 570 | 588 | 518 | 496 | 543 | |
| Central Europe | 36 | 42 | 41 | 33 | 35 | |
| Group-wide and eliminations | 14 | 10 | 17 | 11 | 13 | |
| Group | 1,291 | 1,361 | 1,141 | 1,221 | 1,260 |
| 2017 | ||||||
|---|---|---|---|---|---|---|
| Gross margin, % | I | II | III | IV | I | |
| Nordic | 40.1 | 41.1 | 40.4 | 40.3 | 39.8 | |
| UK | 37.3 | 38.7 | 37.6 | 38.6 | 39.7 | |
| Central Europe | 31.0 | 31.6 | 31.3 | 23.4 | 28.2 | |
| Group | 38.9 | 39.9 | 39.3 | 39.2 | 39.7 |
| 2017 | |||||
|---|---|---|---|---|---|
| Operating profit, SEK m | I | II | III | IV | I |
| Nordic | 212 | 297 | 208 | 246 | 213 |
| UK | 96 | 154 | 137 | 67 | 79 |
| Central Europe | 4 | 5 | 7 | -4 | 2 |
| Group-wide and eliminations | -39 | -43 | -34 | -27 | -39 |
| Group | 273 | 413 | 318 | 282 | 255 |
| 2017 | 2018 | ||||
|---|---|---|---|---|---|
| Operating margin, % | I | II | III | IV | I |
| Nordic | 12.7 | 16.9 | 14.9 | 14.6 | 12.7 |
| UK | 6.3 | 10.1 | 9.9 | 5.2 | 5.8 |
| Central Europe | 3.4 | 3.8 | 5.3 | -2.8 | 1.6 |
| Group | 8.2 | 12.1 | 10.9 | 9.1 | 8.0 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Net sales Nordic by product group, % | 2017 | 2018 | 2017 | 2017/18 |
| Kitchen furnitures | 66 | 67 | 65 | 66 |
| Installation services | 6 | 5 | 6 | 6 |
| Other products | 28 | 28 | 29 | 28 |
| Total | 100 | 100 | 100 | 100 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Net sales UK by product group, % | 2017 | 2018 | 2017 | 2017/18 |
| Kitchen furnitures | 61 | 63 | 60 | 60 |
| Installation services | 5 | 5 | 7 | 7 |
| Other products | 34 | 32 | 33 | 33 |
| Total | 100 | 100 | 100 | 100 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Net sales Central Europe by product group, % | 2017 | 2018 | 2017 | 2017/18 |
| Kitchen furnitures | 90 | 93 | 91 | 92 |
| Installation services | 0 | 0 | 0 | 0 |
| Other products | 10 | 7 | 9 | 8 |
| Total | 100 | 100 | 100 | 100 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Net sales Group by product group, % | 2017 | 2018 | 2017 | 2017/18 |
| Kitchen furnitures | 65 | 67 | 64 | 65 |
| Installation services | 5 | 5 | 6 | 6 |
| Other products | 30 | 28 | 30 | 29 |
| Total | 100 | 100 | 100 | 100 |
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 pages 21-22.
| Jan-Mar | ||
|---|---|---|
| Analysis of external net sales Nordic Region | % | SEK m |
| 2017 | 1,672 | |
| Organic growth | -1 | -18 |
| Currency effecs | 2 | 28 |
| 2018 | 1 | 1,682 |
| Jan-Mar | ||||
|---|---|---|---|---|
| Analysis of external net sales UK Region | % | SEK m | ||
| 2017 | 1,527 | |||
| Organic growth | -12 | -187 | ||
| Currency effecs | 2 | 27 | ||
| 2018 | -11 | 1,367 |
| Jan-Mar | ||
|---|---|---|
| Analysis of external net sales Central Europe Region | % | SEK m |
| 2017 | 116 | |
| Organic growth | 1 | 1 |
| Currency effecs | 5 | 7 |
| 2018 | 6 | 124 |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Operating profit before depreciation and impairment, SEK m | 2017 | 2018 | 2017 | 2017/18 |
| Operating profit | 273 | 255 | 1,286 | 1,268 |
| Depreciation and impairment | 71 | 74 | 287 | 290 |
| Operating profit before depreciation and impairment | 344 | 329 | 1,573 | 1,558 |
| Net Sales | 3,315 | 3,173 | 12,744 | 12,602 |
| % of sales | 10.4% | 10.4% | 12.3% | 12.4% |
| Jan-Mar | Jan-Dec | Apr-Mar | ||
|---|---|---|---|---|
| Profit/loss after tax excluding IAC, SEK m | 2017 | 2018 | 2017 | 2017/18 |
| Profit/loss after tax | 205 | 193 | 1,015 | 1,003 |
| Items affecting comparability net after tax | – | – | – | – |
| Profit/loss after tax excluding IAC | 205 | 193 | 1,015 | 1,003 |
31 Mar 31 Dec
| Net debt SEK m | 2017 | 2018 | 2017 |
|---|---|---|---|
| Provisions for pensions (IB) | 835 | 545 | 567 |
| Other long-term liabilities, interest-bearing (IB) | 8 | 7 | 5 |
| Current liabilities, interest-bearing (IB) | 801 | 0 | 1 |
| Interest-bearing liabilities | 1,644 | 552 | 573 |
| Long-term receivables, interest -bearing (IB) | -3 | -4 | -5 |
| Current receivables, interest-bearing (IB) | -2 | -31 | -18 |
| Cash and cash equivalents (IB) | -1,243 | -536 | -473 |
| Interest-bearing assets | -1,248 | -571 | -496 |
| Net debt | 396 | -19 | 77 |
| 31 Mar | 31 Dec | ||
| Operating capital SEK m | 2017 | 2018 | 2017 |
| Total assets | 8,075 | 7,783 | 7,180 |
| Other provisions | -109 | -36 | -40 |
| Deferred tax liabilities | -100 | -88 | -89 |
| Current liabilities, non interest-bearing | -2,621 | -2,502 | -2,324 |
| Liabilities attributable to assets held for sale, non interest-bearing | -1 | – | – |
| Non-interest-bearing liabilities | -2,831 | -2,626 | -2,453 |
| Capital employed | 5,244 | 5,157 | 4,727 |
| Interest-bearing assets | -1,248 | -571 | -496 |
| Operating capital | 3,996 | 4,586 | 4,231 |
| Average operating capital SEK m | Jan-Dec | Apr-Mar | |
| 2017 | 2017/18 | ||
| OB Operating capital | 3,912 | 3,996 | |
| OB Net operating assets discontinued operations | 22 | 4 | |
| CB Operating capital Average operating capital before adjustments of acquistion and |
4,231 | 4,586 | |
| divestments | 4,083 | 4,293 | |
| Adjustment for acquisitions and divestments not occurred in the middle of the period |
– | – | |
| Average operating capital | 4,083 | 4,293 | |
| Jan-Dec | Apr-Mar | ||
| Average equity SEK m | 2017 | 2017/18 | |
| OB Equity attributable to Parent Company shareholders | 3,415 | 3,600 | |
| CB Equity attributable to Parent Company shareholders | 4,154 | 4,605 | |
| Average equity before adjustment of increases and decreases in capital | 3,785 | 4,103 | |
| Adjustment for increases and decreases in capital not occured in the middle of the period |
–127 | -253 | |
| Average equity | 3,658 | 3,850 | |
| Performance measure | Calculation | Purpose |
|---|---|---|
| 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 shareholders' equity shows the total return on shareholders' capital in accounting terms and reflects the effects of both the operational profitability and financial gearing. The measure is primarily used to analyse shareholder profitability over time. |
| 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. |
Return on operating capital shows how well the operations use net capital that is tied up in the company. It reflects how both cost and capital efficient net sales are generated, meaning the combined effect of the operating margin and the turnover rate of operating capital. The measure is used in profitability comparisons between operations in the Group and to assess the Group's profitability over time. |
| Gross margin | Gross profit as a percentage of sales. | This measure reflects the efficiency of the part of the operations that is primarily linked to production and logistics. It is used to measure cost efficiency in this part of the operations. |
| EBITDA | Earnings before depreciation/amortisation and impairment. |
To simplify, the measure shows the earnings generating cash flow in the operations. It provides a view of the ability of the operations, in absolute terms, to generate resources for investment and payment to financers and is used for comparisons over time. |
| Items affecting comparability | Items that affect comparability in so far as they do not reoccur with the same regularity as other items. |
Reporting items affecting comparability separately clearly shows the performance of the underlying operations. |
| Net debt | Interest-bearing liabilities less interest bearing assets. Interest-bearing liabilities include pension liabilities. |
Net debt is used to monitor the debt trend and see the level of the refinancing requirement. The measure is used as a component in the debt/equity ratio. |
| Operating capital | Capital employed excluding interest bearing assets. |
Operating capital shows the amount of capital required by the operations to conduct its core operations. It is mainly used to calculate the return on operating capital. |
| Operating cash flow | Cash flow from operating activities including cash flow from investing activities, excluding cash flow from acquisitions/divestments of operations, interest received, and increase/decrease in interest-bearing assets. |
This measure comprises the cash flow generated by the underlying operations. The measure is used to show the amount of funds at the company's disposal for paying financers of loans and equity or for use in growth through acquisitions. |
| Organic growth | Change in net sales, excluding acquisitions, divestments and changes in exchange rates. |
Organic growth facilitates a comparison of sales over time by comparing the same operations and excluding currency effects. |
| Region | Region corresponds to an operating segment under 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. |
This measure reflects the operating profitability of the operations. It is used to monitor the flexibility and efficiency of the operations before taking into account capital tied up. The performance measure is used both internally in governance and monitoring of the operation, and for benchmarking with other companies in the industry. |
| Performance measure | Calculation | Purpose |
|---|---|---|
| Debt/equity ratio | Net debt as a percentage of shareholders' equity including non controlling interests. |
A measure of the ratio between the Group's two forms of financing. The measure shows the percentage of the loan capital in relation to capital invested by the owners, and is thus a measure of financial strength but also the gearing effect of lending. A higher debt/equity ratio means a higher financial risk and higher financial gearing. |
| Equity/assets | Shareholders' equity including non controlling interests as a percentage of balance-sheet total. |
This measure reflects the company's financial position and thus its long-term solvency. A healthy equity ratio/strong financial position provides preparedness for managing periods of economic downturn and financial preparedness for growth. It also provides a minor advantage in the form of financial gearing. |
| Capital employed | Balance-sheet total less non-interest bearing provisions and liabilities. |
The capital that shareholders and lenders have placed at the company's disposal. It shows the net capital invested in the operations, such as operating capital, with additions for financial assets. |
| 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). |
Contact any of the following on +46 (0)8 440 16 00 or +46 (0)705 95 51 00:
The interim report will be presented on Friday, 27 April at 15.00 CET in a webcast teleconference that can be followed on Nobia's website. To participate in the teleconference, call one of the following numbers:
| 20 July 2018 | Interim Report January-June 2018 |
|---|---|
| 26 October 2018 | Interim Report January-September 2018 |
This interim report is information such that Nobia is obliged to make 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 27 April 2018 at 14.00 CET.
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.se. Corporate Registration Number: 556528–2752 • Board domicile: Stockholm, Sweden
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