Quarterly Report • Feb 6, 2018
Quarterly Report
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(All values in brackets refer to the corresponding period in 2016 and Poggenpohl is recognised as discontinued operations, see page 7.)
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| 2016 | 2017 | Change, % | 2016 | 2017 | Change, % | |
| Net sales, SEK m | 3,155 | 3,116 | -1 | 12,648 | 12,744 | 1 |
| Gross margin, % | 37.5 | 39.2 | – | 39.0 | 39.3 | – |
| Operating margin before depreciation and impairment, % | 11.6 | 11.4 | – | 12.5 | 12.3 | – |
| Operating profit (EBIT), SEK m | 297 | 282 | -5 | 1,298 | 1,286 | -1 |
| Operating margin, % | 9.4 | 9.1 | – | 10.3 | 10.1 | – |
| Profit after financial items, SEK m | 286 | 272 | -5 | 1,247 | 1,250 | 0 |
| Profit/loss after tax, SEK m | -264 | 232 | – | 455 | 1,015 | – |
| Profit/loss after tax excluding IAC, SEK m | 184 | 232 | 26 | 903 | 1,015 | 12 |
| Earnings/loss per share, after dilution, SEK | -1.56 | 1.38 | – | 2.70 | 6.02 | – |
| Earnings/loss per share, after dilution excluding IAC, SEK | 1.09 | 1.38 | 27 | 5.36 | 6.02 | 12 |
| Operating cash flow, SEK m | 480 | 196 | -59 | 1,031 | 706 | -32 |
"Nobia has had a good year. Despite currency headwind and a challenging UK market, we deliver an EBIT margin that reaches our financial target of 10 per cent. Given the company's satisfactory net profit and strong balance sheet, the Board proposes a dividend totalling SEK 7 per share. Our strong financial position will also enable continued investments in growth, both organic and via acquisitions.
In the fourth quarter sales continued to grow in the Nordics, while sales in the UK were down, primarily because we have exited the Homebase business. I am pleased that the Group's underlying earnings, adjusted for currency and the ceasing of Homebase, were better than the same quarter last year," says President and CEO Morten Falkenberg.
The market during the fourth quarter is deemed overall to be on a level with the year-earlier period.
Organic growth was unchanged (5 per cent), positively impacted by growth in sales in the Nordic region and negatively impacted by decreased sales in the UK. Currency losses of SEK 36 million (losses: 114) impacted sales.
The gross margin improved to 39.2 per cent (37.5), primarily as a result of higher sales values and a changed sales mix.
Operating profit declined as a result of discontinuation costs for the UK Interior Solutions unit and currency losses, which were only partially offset by higher sales values.
The return on operating capital was 31.5 per cent in the past twelvemonth period (Jan-Dec 2016: 32.5). The return on equity was 27.8 per cent in the past twelve-month period (Jan-Dec 2016: 13.0).
Operating cash flow declined, primarily as a result of a negative change in working capital, mainly due to increased payments in the UK year-onyear.
Group net sales and operating margin
| Group-wide and |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nordic | UK | Central Europe | eliminations | Group | |||||||
| Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | |||||||
| SEK m | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | Change, % |
| Net sales from external customers |
1,609 | 1,690 | 1,416 | 1,286 | 130 | 140 | – | – | 3,155 | 3,116 | -1 |
| Net sales from other regions | 0 | 0 | – | – | 0 | 1 | 0 | -1 | – | – | – |
| Net sales | 1,609 | 1,690 | 1,416 | 1,286 | 130 | 141 | 0 | -1 | 3,155 | 3,116 | -1 |
| Gross profit | 644 | 681 | 493 | 496 | 36 | 33 | 10 | 11 | 1,183 | 1,221 | 3 |
| Gross margin, % | 40.0 | 40.3 | 34.8 | 38.6 | 27.7 | 23.4 | – | – | 37.5 | 39.2 | – |
| Operating profit/loss | 237 | 246 | 93 | 67 | 5 | -4 | -38 | -27 | 297 | 282 | -5 |
| Operating margin, % | 14.7 | 14.6 | 6.6 | 5.2 | 3.8 | -2.8 | – | – | 9.4 | 9.1 | – |
| Oct-Dec | ||
|---|---|---|
| % | SEK m | |
| 2016 | 3,155 | |
| Organic growth | 0 | -3 |
| – of which Nordic region | 6 | 102 |
| – of which UK region | -8 | -115 |
| – of which CE region | 7 | 10 |
| Currency effect | -1 | -36 |
| Sales to Hygena | 0 | 0 |
| 2017 | -1 | 3,116 |
| Trans | Trans | ||
|---|---|---|---|
| lation | action | Total | |
| effect | effect | effect | |
| SEK m | Oct-Dec | Oct-Dec | Oct-Dec |
| Nordic | |||
| region | 0 | -15 | -15 |
| UK region | 0 | -10 | -10 |
| CE region | 0 | 0 | 0 |
| Group | 0 | -25 | -25 |
Organic growth was attributable to increased project sales, while consumer sales declined slightly. Project sales increased in Sweden, Denmark and Finland. Consumer sales increased in Denmark and fell in the other Nordic countries.
The gross margin improved as a result of higher sales values, which offset currency losses.
The improvement in operating profit was driven by a stronger gross margin and higher volumes, which were partly offset by negative currency effects and higher costs year-on-year.
Nobia's deliveries of ready-to-assemble kitchen products continued to grow during the fourth quarter as a result of introducing the lower specified HTH GO assortment in the Danish market and the increased cooperation with the electronics chain Power.
Share of consolidated net sales, fourth quarter
Store trend, Oct-Dec 2017
| Renovated or relocated | – |
|---|---|
| Newly opened/closed, net | -2 |
| Number of own kitchen stores | 46 |
The decline in organic sales was primarily due to lower B2B sales, driven by lower sales to the B2B customer Homebase of approximately SEK 50 million compared to the fourth quarter of 2016. Project deliveries were lower year-on-year and sales via Magnet decreased slightly.
The gross margin improved with a positive impact from increased sales values, lower prices of materials, and a changed sales mix.
The decline in operating profit was mainly attributable to lower sales volumes and higher costs for activities such as the discontinuation of Interior Solutions, and new stores.
Nobia's deliveries to the smaller B2B customer Homebase were gradually phased out over 2017. As a result, the company that was supplying Homebase, Interior Solutions, was discontinued, which entailed a discontinuation cost of around SEK 15 million during the fourth quarter.
The Magnet brand was repositioned in December, which resulted in a simplified purchasing process and a clearer offering. At the same time, a new website and the "Magnet – Part of the family" campaign were launched.
Net sales and operating margin
Our brands
Share of consolidated net sales, fourth quarter
Store trend, Oct-Dec 2017
| Renovated or relocated | – |
|---|---|
| Newly opened/closed, net | 2 |
| Number of own kitchen stores | 218 |
Organic growth during the fourth quarter was a result of both increased sales in Austria and increased export sales.
The gross margin weakened as a result of a changed sales mix and higher costs year-on-year.
Operating profit declined as a result of the lower gross margin, as well as increased indirect costs.
Productivity in the Wels plant gradually improved in the second half of the year. By the end of the year, the production disruptions had been eliminated.
In November, Ralph Kobsik was recruited as Executive Vice President and Head of the Central Europe region.
Net sales and operating margin
Share of consolidated net sales, fourth quarter
Our brands
Sales increased organically by 2 per cent (4), distributed as 8 per cent (6) in the Nordic region, a negative 2 per cent (pos: 1) in the UK and a negative 5 per cent (pos: 3) in Central Europe. Currency losses of SEK 203 million (losses: 611) impacted net sales.
Operating profit declined, negatively impacted by currency losses and higher costs, and positively impacted by higher sales values and lower prices of materials.
Group-wide items and eliminations reported an operating loss of SEK 143 million (loss: 140).
Operating cash flow weakened, primarily due to negative changes in working capital.
Nobia's investments in fixed assets amounted to SEK 319 million (290), of which SEK 75 million (69) pertained to store investments. During 2017, Nobia introduced a new omnichannel-based store concept that increases customer involvement, improves the customer experience and makes sales more efficient. Four new stores under this concept were opened for three brands in Norway, the UK and Denmark. The store concept will continue to be developed and rolled out in several new stores.
| Group-wide and |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nordic | UK | Central Europe | eliminations | Group | |||||||
| Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | |||||||
| SEK m | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | Change, % |
| Net sales from external customers |
5,987 | 6,515 | 6,122 | 5,710 | 539 | 519 | – | – | 12,648 | 12,744 | 1 |
| Net sales from other regions | 1 | 1 | – | – | 2 | 2 | -3 | -3 | – | – | – |
| Net sales | 5,988 | 6,516 | 6,122 | 5,710 | 541 | 521 | -3 | -3 | 12,648 | 12,744 | 1 |
| Gross profit | 2,402 | 2,638 | 2,323 | 2,172 | 172 | 152 | 36 | 52 | 4,933 | 5,014 | 2 |
| Gross margin, % | 40.1 | 40.5 | 37.9 | 38.0 | 31.8 | 29.2 | – | – | 39.0 | 39.3 | – |
| Operating profit/loss | 856 | 963 | 545 | 454 | 37 | 12 | -140 | -143 | 1,298 | 1,286 | -1 |
| Operating margin, % | 14.3 | 14.8 | 8.9 | 8.0 | 6.8 | 2.3 | – | – | 10.3 | 10.1 | – |
| Net financial items | – | – | – | – | – | – | – | – | -51 | -36 | 29 |
| Profit after financial items | – | – | – | – | – | – | – | – | 1,247 | 1,250 | 0 |
| % | SEK m |
|---|---|
| 12,648 | |
| 2 | 308 |
| 8 | 451 |
| -2 | -115 |
| -5 | -28 |
| -1 | -203 |
| 0 | -9 |
| 1 | 12,744 |
| Jan-Dec |
| Trans lation |
Trans action |
Total | |
|---|---|---|---|
| effect | effect | effect | |
| SEK m | Jan-Dec | Jan-Dec | Jan-Dec |
| Nordic region | 15 | -15 | 0 |
| UK region | -25 | -80 | -105 |
| CE region | 0 | 0 | 0 |
| Group | -10 | -95 | -105 |
In May 2017, Nobia repaid a bond loan from AB SEK Securities (Swedish Export Credit Corporation) of SEK 800 million. Existing loan facilities subsequently comprised a syndicated bank loan of SEK 1,000 million expiring in 2019. The bank loan was unutilised at 31 December 2017.
Net debt including pension provisions at 31 December 2017 amounted to SEK 77 million (493). The difference compared with the end of 2016 is mainly due to lower pension debt. The debt/equity ratio was 2 per cent (14) at the end of the period.
Net financial items amounted to an expense of SEK 36 million (expense: 51). Net financial items include the net of returns on pension assets and interest expense on pension liabilities corresponding to an expense of SEK 34 million (expense: 34). The net interest expense amounted to SEK 2 million (expense: 17).
On 31 January 2017, Nobia divested Poggenpohl to Adcuram after having gained approval from the competition authorities in Germany and Austria. Nobia thus received a cash consideration of approximately EUR 10 million and payment of an internal loan of about EUR 8 million. Final settlement of the purchase consideration took place in July 2017.
In the third quarter of 2017, Nobia reclassified the two stores that the company had acquired from franchisees with the intention of selling on, and that were recognised
Return on shareholders' equity and operating capital
in the interim report for the second quarter of 2017 as Discontinued operations and disposal group held for sale, in accordance with IFRS 5. These stores were recognised under continuing operations after the reclassification because Nobia believes that they will not be sold within the next twelve months. The reclassification impacted Nobia's operating profit for 2017 by a total of SEK 0 million and pertains to the stores' earnings and accumulated depreciation.
From the fourth quarter of 2016, Poggenpohl's operations are reported as discontinued operations in accordance with IFRS 5. The January-September 2016 period was restated with regard to the income statement, organic growth, specification of items affecting comparability, cash-flow statement and comparative data per region. These restatements are presented as an appendix available on the Nobia website under Investor Relations and Reports and presentations.
Profit after tax from discontinued operations during 2017 amounted to SEK 21 million, pertaining to Poggenpohl. A provision of SEK 20 million related to the divestment of Poggenpohl was dissolved in the third quarter.
Loss after tax for discontinued operations for 2016 amounted to SEK 523 million, of which a loss of SEK 448 million pertained to assets and liabilities in Poggenpohl, a loss of SEK 73 million pertained to Poggenpohl's current earnings, profit of SEK 5 million pertained to the dissolution of a provision related to the divestment of Hygena and a loss of 7 million pertained to stores that Nobia had acquired from franchisees with the intention of subsequently selling on.
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 2017. For 2016, items affecting comparability of an expense of SEK 448 million related to impairment of Poggenpohl were recognised, which impacted earnings from discontinued operations.
The number of employees at 31 December 2017 was 6,087 (6,445). The decline in the number of employees was mainly attributable to the divestment of Poggenpohl. At 31 December 2016, Poggenpohl had 481employees.
Ola Carlsson took office as Executive Vice President, Chief Product Supply Officer on 9 October 2017.
Nick Corlett, Executive Vice President Sourcing and Product Management, and Niek Visarius, Executive Vice President Supply Chain Operations, left Nobia in October 2017.
On 20 May 2018 Erkka Lumme, Executive Vice President and Head of Commercial Finland, will leave Nobia. The process of recruiting his successor has begun.
By 1 June 2018 at the latest Ralph Kobsik will take office as Executive Vice President Head of the Central Europe region. Ralph Kobsik is currently Head of International Markets at the V-Zug appliance company, and has previously held senior positions at BSH Bosch and Siemens Home Appliances.
The Board of Directors has decided on the following unchanged targets:
The Annual General Meeting of Nobia will be held on Tuesday, 10 April 2018 at 4:00 PM, at Lundqvist & Lindqvist Klara Strand Konferens, Klarabergsviadukten 90 in Stockholm, Sweden.
Shareholders in Nobia are welcome to submit proposals to the Annual General Meeting not later than 20 February via e-mail: [email protected] or by post: Nobia AB, Bolagsstamma, Box 70376, SE-107 24 Stockholm, Sweden.
Publication of the Annual Report on the company's website is planned for 20 March, and will be distributed in print to those who have requested it.
Tomas Billing, who has been a Board member and Chairman of the Board of Nobia since 2015, has declined re-election at the 2018 Annual General Meeting.
The Nomination Committee proposes that the Board of Directors of Nobia consist of nine members. George Adams, Morten Falkenberg, Lilian Fossum Biner, Nora Førisdal Larssen, Jill Little, Stefan Jacobsson, Christina Ståhl and Ricard Wennerklint are proposed for reelection. Hans Eckerström is proposed as new member and Chairman of the Board.
Hans Eckerström is a Board member of Nordstjernan and Thule Group. He was previously an employee and partner of NC Advisory, the advisor to Nordic Capital's funds.
The complete proposal from the Nomination Committee will be presented in the notice to the Annual General Meeting, to be published on 9 March 2017.
For the 2017 fiscal year the Board proposes an ordinary dividend of SEK 3.50 per share (3.00) and an extra dividend of SEK 3.50 per share (–). The proposal entails a total share dividend of approximately SEK 1,180 million, corresponding to about 116 per cent of net profit for the year after tax.
The record day for the right to receive a dividend is 12 April 2018. The final day for trading in Nobia shares including the right to a dividend is 10 April 2018.
In 2017, Nobia transferred 110,419 for the purpose of delivering shares under a Performance Share Plan resolved by Nobia's 2014 Annual General Meeting.
The 2014 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.
At 31 December 2017, Nobia's holding of treasury shares amounted to 6,709,571 shares.
The Board of Directors has decided to propose to the 2018 Annual General Meeting to authorise the Board of Dirfectors to cancel 5,000,000 treasury shares, corresponding to the number of shares that are not required to fulfil the 2015-2018 Performance Share Plans. If the proposal is approved and implemented, the total number of shares in Nobia will be reduced from 175,293,458 to 170,293,458 shares.
Nobia is exposed to strategic, operating and financial risks, which are described on pages 37–39 of the 2016 Annual Report.
During 2017, demand in the Nordic region and Central Europe is deemed to have improved, compared to the year-earlier period. In the UK, macroeconomic uncertainty as a consequence of Brexit had a slightly negative impact on the kitchen market in 2017. 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 at 31 December 2017 contained goodwill of SEK 2,361 million (2,359). The value of this asset item is tested if there are any indications of a decline in value and at least once annually.
Stockholm, 6 February 2018
Morten Falkenberg President and CEO
Nobia AB, Corporate Registration Number 556528-2752
The Year-end Report is unaudited.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK m | 2016 | 2017 | 2016 | 2017 |
| Net sales | 3,155 | 3,116 | 12,648 | 12,744 |
| Cost of goods sold | -1,972 | -1,895 | -7,715 | -7,730 |
| Gross profit | 1,183 | 1,221 | 4,933 | 5,014 |
| Selling and administrative expenses | -909 | -944 | -3,682 | -3,751 |
| Other income/expenses | 23 | 5 | 47 | 23 |
| Operating profit | 297 | 282 | 1,298 | 1,286 |
| Net financial items | -11 | -10 | -51 | -36 |
| Profit/loss after financial items | 286 | 272 | 1,247 | 1,250 |
| Tax | -48 | -41 | -269 | -256 |
| Profit/loss after tax from continuing operations | 238 | 231 | 978 | 994 |
| Profit/loss from discontinued operations, net after tax | -502 | 1 | -523 | 21 |
| Profit/loss after tax | -264 | 232 | 455 | 1,015 |
| Total profit attributable to: | ||||
| Parent Company shareholders | -264 | 232 | 456 | 1,015 |
| Non-controlling interests | 0 | – | -1 | 0 |
| Total profit/loss | -264 | 232 | 455 | 1,015 |
| Total depreciation¹ | 62 | 72 | 287 | 285 |
| Total impairment¹ | 8 | 1 | 0 | 2 |
| Gross margin, % | 37.5 | 39.2 | 39.0 | 39.3 |
| Operating margin, % | 9.4 | 9.1 | 10.3 | 10.1 |
| Return on operating capital, % | – | – | 32.5 | 31.5 |
| Return on shareholders equity, % | – | – | 13.0 | 27.8 |
| Earnings per share before dilution, SEK2 | -1.57 | 1.38 | 2.71 | 6.02 |
| Earnings per share after dilution, SEK2 | -1.56 | 1.38 | 2.70 | 6.02 |
| Number of shares at period end before dilution, 000s3 | 168,473 | 168,584 | 168,473 | 168,584 |
| Average number of shares before dilution, 000s3 | 168,473 | 168,584 | 168,425 | 168,547 |
| Number of shares after dilution at period end, 000s3 | 168,674 | 168,686 | 168,676 | 168,712 |
| Average number of shares after dilution, 000s3 | 168,674 | 168,686 | 168,664 | 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.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK m | 2016 | 2017 | 2016 | 2017 |
| Profit/loss after tax | –264 | 232 | 455 | 1,015 |
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Exchange-rate differences attributable to translation of foreign operations |
-36 | 104 | -172 | -18 1 |
| Cash flow hedges before tax | -3 | 5 | -8 | 14 |
| Tax attributable to change in hedging reserve for the period | 1 | -1 | 2 | -3 |
| -38 | 108 | -178 | -7 | |
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit pension plans | 214 | 199 | -312 | 277 |
| Tax relating to remeasurements of defined benefit pension plans | -42 | -33 | 49 | -46 |
| 172 | 166 | -263 | 231 | |
| Other comprehensive income/loss | 134 | 274 | -441 | 224 |
| Total comprehensive income/loss | -130 | 506 | 14 | 1,239 |
| Total comprehensive income/loss attributable to: | ||||
| Parent Company shareholders | -130 | 506 | 15 | 1,239 |
| Non-controlling interests | 0 | – | -1 | 0 |
| Total comprehensive income/loss | -130 | 506 | 14 | 1,239 |
1 Of which a negative SEK 44 million pertains to adjustment for accumulated exchange-rate differences for the Poggenpohl operation.
| 31 Dec | ||
|---|---|---|
| SEK m | 2016 | 2017 |
| ASSETS | ||
| Goodwill | 2,359 | 2,361 |
| Other intangible fixed assets | 126 | 149 |
| Tangible fixed assets | 1,384 | 1,367 |
| Long-term receivables, interest-bearing (IB) | 3 | 5 |
| Long-term receivables | 28 | 34 |
| Deferred tax assets | 176 | 118 |
| Total fixed assets | 4,076 | 4,034 |
| Inventories | 857 | 908 |
| Accounts receivable | 1,240 | 1,282 |
| Current receivables, interest-bearing (IB) | 1 | 18 |
| Other receivables | 320 | 465 |
| Total current receivables | 1,561 | 1,765 |
| Cash and cash equivalents (IB) | 1,005 | 473 |
| Assets held for sale | 506 | – |
| Total current assets | 3,929 | 3,146 |
| Total assets | 8,005 | 7,180 |
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Share capital | 58 | 58 |
| Other capital contributions | 1,481 | 1,486 |
| Reserves | -257 | -264 |
| Profit brought forward | 2,133 | 2,874 |
| Total shareholders' equity attributable to Parent Company | ||
| shareholders | 3,415 | 4,154 |
| Non-controlling interests | 4 | – |
| Total shareholders' equity | 3,419 | 4,154 |
| Provisions for pensions (IB) | 894 | 567 |
| Other provisions | 79 | 40 |
| Deferred tax liabilities | 84 | 89 |
| Other long-term liabilities, interest-bearing (IB) | 6 | 5 |
| Total long-term liabilities | 1,063 | 701 |
| Current liabilities, interest-bearing (IB) | 801 | 1 |
| Current liabilities | 2,393 | 2,324 |
| Liabilities attributable to assets held for sale | 329 | – |
| Total current liabilities | 3,523 | 2,325 |
| Total shareholders' equity and liabilities | 8,005 | 7,180 |
| BALANCE-SHEET RELATED KEY RATIOS | ||
| Equity/assets ratio, % | 43 | 58 |
| Debt/equity ratio, % | 14 | 2 |
| Net debt, closing balance, SEK m | 493 | 77 |
| Operating capital, closing balance, SEK m | 3,912 | 4,231 |
| Capital employed, closing balance, SEK m | 5,182 | 4,727 |
1 Change compared with 31 December 2016 primarily due to divestment of Poggenpohl.
| Exchange-rate differences |
Cash | |||||||
|---|---|---|---|---|---|---|---|---|
| attributable to | flow | Total | ||||||
| translation of | hedges | Profit | Non | share | ||||
| Share | Other capital | foreign | after | brought | controlling | holders | ||
| SEK m | capital | contributions | operations | tax | forward | Total | interests | equity |
| Opening balance, 1 January 2016 | 58 | 1,478 | -81 | 2 | 2,361 | 3,818 | 4 | 3,822 |
| Profit/loss for the period | – | – | – | – | 456 | 456 | -1 | 455 |
| Other comprehensive | – | – | -172 | -6 | -263 | -441 | 0 | -441 |
| income/loss for the period | ||||||||
| Total comprehensive income for | – | – | -172 | -6 | 193 | 15 | -1 | 14 |
| the period | ||||||||
| Dividend | – | – | – | – | -421 | -421 | 0 | -421 |
| Share of Group contribution - | – | – | – | – | – | – | 1 | 1 |
| Non-controlling interest | ||||||||
| Allocation of share saving | – | 3 | – | – | – | 3 | – | 3 |
| schemes | ||||||||
| Closing balance, 31 December | 58 | 1,481 | -253 | -4 | 2,133 | 3,415 | 4 | 3,419 |
| 2016 | ||||||||
| Opening balance, 1 January 2017 | 58 | 1,481 | -253 | -4 | 2,133 | 3,415 | 4 | 3,419 |
| Profit/loss for the period | – | – | – | – | 1,015 | 1,015 | 0 | 1,015 |
| Other comprehensive | ||||||||
| income/loss for the period | – | – | -18 | 11 | 231 | 224 | 0 | 224 |
| Total comprenhensive | ||||||||
| income/loss for the period | – | – | -18 | 11 | 1,246 | 1,239 | 0 | 1,239 |
| Dividend | – | – | – | – | -505 | -505 | – | -505 |
| Change in non-controlling | ||||||||
| interests | – | – | – | – | – | – | -4 | -4 |
| Allocation of share saving | ||||||||
| schemes | – | 5 | – | – | – | 5 | – | 5 |
| Closing balance, 31 December 2017 |
58 | 1,486 | -271 | 7 | 2,874 | 4,154 | – | 4,154 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK m | 2016 | 2017 | 2016 | 2017 |
| Operating activities | ||||
| Operating profit | 297 | 282 | 1,298 | 1,286 |
| Operating profit/loss for discontinued operations | -451 | 1 | -466 | 20 |
| Depreciation/Impairment | 408 | 73 | 657 1 |
287 2 |
| Adjustments for non-cash items | 82 | 21 | 95 | -30 |
| Tax paid | -88 | -131 | -230 | -248 |
| Change in working capital | 334 | 60 | -73 | -328 |
| Cash flow from operating activities | 582 | 306 | 1,281 | 987 |
| Investing activities | ||||
| Investments in fixed assets | -119 | -132 | -290 | -319 |
| Other items in investing activities | 17 | 22 | 40 | 38 |
| Interest received | 0 | 1 | 1 | 3 |
| Change in interest-bearing assets | 1 | 0 | 4 | -19 |
| Acquisistion of operations | – | – | 0 | – |
| Divestment of operations | – | -3 | – | -93 |
| Cash flow from investing activities | -101 | -112 | -245 | -390 |
| Operating cash flow before acquisition/divestment of | ||||
| operations, interest, increase/decrease of interest | ||||
| bearing assets | 480 | 196 | 1,031 | 706 |
| Total cashflow from operating and investing activities | 481 | 194 | 1,036 | 597 |
| Financing activities | ||||
| Interest paid | -5 | -2 | -21 | -10 |
| 5 Change in interest-bearing liabilities |
-21 | -21 | -71 3 |
-872 4 |
| Dividend | – | – | -421 | -505 |
| Cash flow from financing activities | -26 | -23 | -513 | -1,387 |
| Cash flow for the period excluding exchange-rate | ||||
| differences in cash and cash equivalents | ||||
| 455 | 171 | 523 | -790 | |
| Cash and cash equivalents at beginning of the period | 812 | 264 | 765 | 1,266 6 |
| Cash flow for the period | 455 | 171 | 523 | -790 |
| Exchange-rate differences in cash and cash equivalents 5 |
-1 | 38 | -22 | -3 |
| Cash and cash equivalents at period-end | 1,266 | 473 | 1,266 6 |
473 |
1 Impairment amounted to SEK 332 million and pertained to land and buildings SEK 151 million, plant and machinery SEK 28 million, equipment tools, fixtures, and fittings SEK 47 million, kitchen displays SEK 46 million, goodwill SEK 58 million and other tangible assets SEK 2 million.
2 Impairment amounted to SEK 2 million and pertained to kitchen displays.
3 No repayment or raising of loans took place during the period.
4 Repayment of loans totalling SEK 800 million. No loans were raised during the period.
5 Refer to Note 1 on page 16.
6 Of which SEK 261 million is recognised on the line Assets held for sale.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| SEK m | 2016 | 2017 | 2016 | 2017 |
| Opening balance | 1,159 | 485 | 774 | 493 |
| Acquisition of operations | – | – | 0 | – |
| Divestment of operations | – | 2 | – | 30 |
| Translation differences | 14 | -25 | -31 | -3 |
| Operating cash flow | -480 | -196 | -1,031 | -706 |
| Interest paid, net | 5 | 1 | 20 | 7 |
| Remeasurements of defined benefit pension plans | -214 | -199 | 312 | -277 |
| Other change in pension liabilities | 9 | 9 | 28 | 28 |
| Dividend | – | – | 421 | 505 |
| Closing balance | 493 | 77 | 493 | 77 |
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 2016 Annual Report.
Earlier periods have been restated to reflect the discovery of an error in the classification of translation effects of cash and cash equivalents in the cash-flow statement. These translation effects were historically recognised in financing activities on the line "Change in interest-bearing liabilities" but have been corrected and are now recognised as "Exchange-rate differences in cash and cash equivalents". Corrections for historical periods are as follows:
| Before restatement | After restatement | Corrections | |
|---|---|---|---|
| Oct-Dec 2016 | SEK -8 million | SEK -1 million | SEK +7 million |
| Jan-Dec 2016 | SEK 37 million | SEK -22 million | SEK -59 million |
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 will begin to apply IFRS 15 from 1 January 2018 and apply the introduction retrospectively. During the current year, it conducted a Group-wide 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 plans to implement 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 reason for the reduced sales in 2017 is due to the revenue recognised in the first quarter of 2017, which should have been reported in 2016 according to IFRS 15, being greater than the revenue that will be recognised in the first quarter of 2018 but should have been recognised in 2017. The revenue for the 2017 fiscal year will not be 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.
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 will begin to apply IFRS 9 from 1 January 2018. During the current year, 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 amounting 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.
Segment information, pages 2 and 6. Loan and shareholder's equity transactions, pages 7 and 8. Divestment of operations, page 7. Items affecting comparability, page 8.
The carrying amounts of the Group's financial assets and liabilities are recognised at amortised cost, corresponding to a reasonable approximation of their fair values. Financial instruments measured at fair value in the balance sheet are forward agreements comprising assets at a value of SEK 39 million (31 Dec 2016: 9) and liabilities at a value of SEK 26 million (31 Dec 2016: 12). 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. During the fourth quarter of 2016, SEK 22 million was paid out and the remaining provision as per 31 December 2016 amounted to SEK 22 million restated at the applicable balance-sheet rate. During the fourth quarter of 2017, SEK 22 million was paid out. The remaining provision amounts to SEK 0 million.
The Parent Company invoiced Group-wide services to subsidiaries in an amount of SEK 216 million (217) during the January-December 2017 period. The Parent Company's reported dividends from participations in Group companies totalled SEK 978 million (667).
| Oct-Dec | Jan-Dec | ||||
|---|---|---|---|---|---|
| SEK m | 2016 | 2017 | 2016 | 2017 | |
| Net sales | 47 | 53 | 219 | 224 | |
| Administrative expenses | -94 | -50 | -301 | -271 | |
| Operating loss | -47 | 3 | -82 | -47 | |
| Profit from shares in Group companies | -76 | 977 | -76 | 969 | |
| Other financial income and expenses | -8 | 26 | -1 | -2 | |
| Profit/loss after financial items | -131 | 1,006 | -159 | 920 | |
| Tax on profit/loss for the period | -19 | -31 | -20 | -31 | |
| Profit/loss for the period | -150 | 975 | -179 | 889 |
| 31 Dec | ||
|---|---|---|
| SEK m | 2016 | 2017 |
| ASSETS | ||
| Fixed assets | ||
| Shares and participations in Group companies | 1,469 | 1,379 |
| Deferred tax assets | 0 | 5 |
| Total fixed assets | 1,469 | 1,384 |
| Current assets | ||
| Current receivables | ||
| Accounts receivable | 1 | 1 |
| Receivables from Group companies | 2,868 | 2,839 |
| Other receivables | 3 | 44 |
| Prepaid expenses and accrued income | 47 | 52 |
| Cash and cash equivalents | 949 | 334 |
| Total current assets | 3,868 | 3,270 |
| Total assets | 5,337 | 4,654 |
| SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES | ||
| Shareholders' equity | ||
| Restricted shareholders' equity | ||
| Share capital | 58 | 58 |
| Statutory reserve | 1,671 | 1,671 |
| 1,729 | 1,729 | |
| Non-restricted shareholders' equity | ||
| Share premium reserve | 52 | 52 |
| Buy-back of shares | -391 | -385 |
| Profit brought forward | 1,948 | 1,262 |
| Profit/loss for the period | -179 | 889 |
| 1,430 | 1,818 | |
| Total shareholders' equity | 3,159 | 3,547 |
| Long term liabilities | ||
| Provisions for pensions | 16 | 17 |
| Deferred tax liabilities | 0 | 5 |
| Total long-term liabilities | 16 | 22 |
| Current liabilities | ||
| Liabilities to credit institutes | 800 | 0 |
| Accounts payable | 15 | 23 |
| Liabilities to Group companies | 1,276 | 956 |
| 17 | 44 | |
| Other liabilities | 10 | 42 |
| Accrued expenses and deferred income | 44 | 20 |
| Total current liabilities | 2,162 | 1,085 |
| Total shareholders' equity, provisions and liabilities | 5,337 | 4,654 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Net sales, SEK m | 2016 | 2017 | 2016 | 2017 |
| Nordic | 1,609 | 1,690 | 5,988 | 6,516 |
| UK | 1,416 | 1,286 | 6,122 | 5,710 |
| Central Europe | 130 | 141 | 541 | 521 |
| Group-wide and eliminations | 0 | -1 | -3 | -3 |
| Group | 3,155 | 3,116 | 12,648 | 12,744 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Gross profit, SEK m | 2016 | 2017 | 2016 | 2017 |
| Nordic | 644 | 681 | 2,402 | 2,638 |
| UK | 493 | 496 | 2,323 | 2,172 |
| Central Europe | 36 | 33 | 172 | 152 |
| Group-wide and eliminations | 10 | 11 | 36 | 52 |
| Group | 1,183 | 1,221 | 4,933 | 5,014 |
| Oct-Dec Jan-Dec |
|||||
|---|---|---|---|---|---|
| Gross margin, % | 2016 | 2017 | 2016 | 2017 | |
| Nordic | 40.0 | 40.3 | 40.1 | 40.5 | |
| UK | 34.8 | 38.6 | 37.9 | 38.0 | |
| Central Europe | 27.7 | 23.4 | 31.8 | 29.2 | |
| Group | 37.5 | 39.2 | 39.0 | 39.3 |
| Oct-Dec | Jan-Dec | |||||
|---|---|---|---|---|---|---|
| Operating profit, SEK m | 2016 | 2017 | 2016 | 2017 | ||
| Nordic | 237 | 246 | 856 | 963 | ||
| UK | 93 | 67 | 545 | 454 | ||
| Central Europe | 5 | -4 | 37 | 12 | ||
| Group-wide and eliminations | -38 | -27 | -140 | -143 | ||
| Group | 297 | 282 | 1,298 | 1,286 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Operating margin, % | 2016 | 2017 | 2016 | 2017 |
| Nordic | 14.7 | 14.6 | 14.3 | 14.8 |
| UK | 6.6 | 5.2 | 8.9 | 8.0 |
| Central Europe | 3.8 | -2.8 | 6.8 | 2.3 |
| Group | 9.4 | 9.1 | 10.3 | 10.1 |
| 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|
| Net sales, SEK m | I | II | III | IV | I | II | III | IV |
| Nordic | 1,398 | 1,626 | 1,355 | 1,609 | 1,672 | 1,756 | 1,398 | 1,690 |
| UK | 1,578 | 1,633 | 1,495 | 1,416 | 1,527 | 1,520 | 1,377 | 1,286 |
| Central Europe | 117 | 144 | 150 | 130 | 116 | 133 | 131 | 141 |
| Group-wide and eliminations | -2 | 0 | -1 | 0 | 0 | -1 | -1 | -1 |
| Group | 3,091 | 3,403 | 2,999 | 3,155 | 3,315 | 3,408 | 2,905 | 3,116 |
| 2016 | 2017 | |||||||
| Gross profit, SEK m | I | II | III | IV | I | II | III | IV |
| Nordic | 548 | 673 | 537 | 644 | 671 | 721 | 565 | 681 |
| UK | 621 | 636 | 573 | 493 | 570 | 588 | 518 | 496 |
| Central Europe | 36 | 50 | 50 | 36 | 36 | 42 | 41 | 33 |
| Group-wide and eliminations | 10 | 6 | 10 | 10 | 14 | 10 | 17 | 11 |
| Group | 1,215 | 1,365 | 1,170 | 1,183 | 1,291 | 1,361 | 1,141 | 1,221 |
| 2016 | 2017 | |||||||
| Gross margin, % | I | II | III | IV | I | II | III | IV |
| Nordic | 39.2 | 41.4 | 39.6 | 40.0 | 40.1 | 41.1 | 40.4 | 40.3 |
| UK | 39.4 | 38.9 | 38.3 | 34.8 | 37.3 | 38.7 | 37.6 | 38.6 |
| Central Europe | 30.8 | 34.7 | 33.3 | 27.7 | 31.0 | 31.6 | 31.3 | 23.4 |
| Group | 39.3 | 40.1 | 39.0 | 37.5 | 38.9 | 39.9 | 39.3 | 39.2 |
| 2016 | 2017 | |||||||
| Operating profit, SEK m | I | II | III | IV | I | II | III | IV |
| Nordic | 163 | 271 | 185 | 237 | 212 | 297 | 208 | 246 |
| UK | 111 | 175 | 166 | 93 | 96 | 154 | 137 | 67 |
| Central Europe | 5 | 13 | 14 | 5 | 4 | 5 | 7 | -4 |
| Group-wide and eliminations | -34 | -39 | -29 | -38 | -39 | -43 | -34 | -27 |
| Group | 245 | 420 | 336 | 297 | 273 | 413 | 318 | 282 |
| 2016 | 2017 | |||||||
| Operating margin, % | I | II | III | IV | I | II | III | IV |
| Nordic | 11.7 | 16.7 | 13.7 | 14.7 | 12.7 | 16.9 | 14.9 | 14.6 |
| UK | 7.0 | 10.7 | 11.1 | 6.6 | 6.3 | 10.1 | 9.9 | 5.2 |
| Central Europe | 4.3 | 9.0 | 9.3 | 3.8 | 3.4 | 3.8 | 5.3 | -2.8 |
| Group | 7.9 | 12.3 | 11.2 | 9.4 | 8.2 | 12.1 | 10.9 | 9.1 |
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 23–25.
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Analysis of external net sales Nordic region | % | SEK m | % | SEK m |
| 2016 | 1,609 | 5,987 | ||
| Organic growth | 6 | 102 | 8 | 451 |
| Currency effecs | -1 | -21 | 1 | 77 |
| 2017 | 5 | 1,690 | 9 | 6,515 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Analysis of external net sales UK region | % | SEK m | % | SEK m |
| 2016 | 1,416 | 6,122 | ||
| Organic growth | -8 | -115 | -2 | -115 |
| Currency effecs | -1 | -15 | -5 | -288 |
| Sales to Hygena | 0 | 0 | 0 | -9 |
| 2017 | -9 | 1,286 | -6 | 5,710 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Analysis of external net sales CE Region | % | SEK m | % | SEK m |
| 2016 | 130 | 539 | ||
| Organic growth | 7 | 10 | -5 | -28 |
| Currency effecs | 0 | 0 | 2 | 8 |
| 2017 | 8 | 140 | -4 | 519 |
| Oct-Dec | Jan-Dec | |||
|---|---|---|---|---|
| Operating profit before depreciation and impairment, SEK m |
2016 | 2017 | 2016 | 2017 |
| Operating profit | 297 | 282 | 1,298 | 1,286 |
| Depreciation and impairment | 70 | 73 | 287 | 287 |
| Operating profit before depreciation and impairment | 367 | 355 | 1,585 | 1,573 |
| Net Sales | 3,155 | 3,116 | 12,648 | 12,744 |
| % of sales | 11.6% | 11.4% | 12.5% | 12.3% |
| Oct-Dec | Jan-Dec | |||
| Profit/loss after tax excluding IAC, SEK m | 2016 | 2017 | 2016 | 2017 |
| Profit/loss after tax | -264 | 232 | 455 | 1,015 |
Items affecting comparability net after tax 448 – 448 – Profit/loss after tax excluding IAC 184 232 903 1,015
| 31 Dec | ||
|---|---|---|
| Net debt, SEKm | 2016 | 2017 |
| Provisions for pensions (IB) | 894 | 567 |
| Other long-term liabilities, interest-bearing (IB) | 6 | 5 |
| Current liabilities, interest-bearing (IB) | 801 | 1 |
| Interest-bearing liabilities booked as liabilities attributable to assets held for sale (IB) | 62 | – |
| Interest-bearing liabilities | 1,763 | 573 |
| Long-term receivables, interest -bearing (IB) | -3 | -5 |
| Current receivables, interest-bearing (IB) | -1 | -18 |
| Interest-bearing assets booked as assets held for sale (IB) | -261 | – |
| Cash and cash equivalents (IB) | -1,005 | -473 |
| Interest-bearing assets | -1,270 | -496 |
| Net debt | 493 | 77 |
| 31 Dec | ||
|---|---|---|
| Operating capital, SEK m | 2016 | 2017 |
| Total assets | 8,005 | 7,180 |
| Other provisions | -79 | -40 |
| Deferred tax liabilities | -84 | -89 |
| Current liabilities, non interest-bearing | -2,393 | -2,324 |
| Liabilities attributable to assets held for sale, non interest-bearing | -267 | – |
| Non-interest-bearing liabilities | -2,823 | -2,453 |
| Capital employed | 5,182 | 4,727 |
| Interest-bearing assets | -1,009 | -496 |
| Interest-bearing assets booked as assets held for sale (IB) | -261 | – |
| Operating capital | 3,912 | 4,231 |
| Jan-Dec | Jan-Dec | |
|---|---|---|
| Average operating capital, SEK m | 2016 | 2017 |
| OB Operating capital | 4,596 | 3,912 |
| OB Net operating assets discontinued operations | -535 | 22 |
| CB Operating capital | 3,912 | 4,231 |
| CB Net operating assets discontinued operations | 22 | – |
| Average operating capital before adjustments of acquistion and divestments | 3,998 | 4,083 |
| Adjustment for acquisitions and divestments not occurred in the middle of the | ||
| period | 0 | – |
| Average operating capital | 3,998 | 4,083 |
| Jan-Dec | Jan-Dec |
|---|---|
| 2016 | 2017 |
| 3,818 | 3,415 |
| 3,415 | 4,154 |
| 3,617 | 3,785 |
| -106 | -127 |
| 3,511 | 3,658 |
| 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. |
| Performance measure |
Calculation | Purpose |
|---|---|---|
| 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. |
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. |
| 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. |
| Performance measure |
Calculation | Purpose |
|---|---|---|
| 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 |
(functional currency).
the currency of the producing country
25
Contact any of the following on +46 (0)8 440 16 00 or
+46 (0)705 95 51 00:
The year-end report will be presented on Tuesday, 6 February at 10:00 a.m. in a webcast teleconference that can be followed on Nobia's website. To participate in the teleconference, call one of the following numbers:
| 20 March 2018 | Annual Report for 2017 |
|---|---|
| 10 April 2018 | Annual General Meeting 2018 |
| 27 April 2018 | Interim Report January-March 2018 |
| 20 July 2018 | Interim Report January-June 2018 |
| 26 October 2018 | Interim Report January-September 2018 |
This year-end 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 6 February 2018 at 8:00 a.m. CET.
Nobia develops and sells kitchens through some twenty strong brands in Europe, including Magnet in the UK; HTH, Norema, Sigdal, Invita, and 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
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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