Nobia

Quarterly Report • Jul 19, 2021

Interim report January - June 2021

Interim report January – June 2021

Second quarter 2021

• Net sales increased to SEK 3,622m (2,741) corresponding to an organic sales growth of 35%.
• Operating profit increased to SEK 347m (-43), corresponding to an operating margin of 9.6% (-1.6).
• Changes in exchange rates negatively impacted operating profit by SEK 5m.
• Profit after tax amounted to SEK 258m (-56), corresponding to earnings per share after dilution of SEK 1.52 (-0.33).
• Operating cash flow amounted to SEK 618m (716).

	Q2		Ch.		Jan - Jun		Jan - Dec	12 mos.
	2020	2021	%	2020	2021	%	2020	rolling
Net sales, SEK m	2,741 3,622		32	6,186	6,995	13	12,741	13,550
Gross margin, %	31.6	39.0	–	34.6	38.5	–	34.9	36.9
Gross margin excl. IAC	31.6	39.0	–	34.6	38.5	–	35.7	37.6
Operating margin before depreciation/impairment (EBITDA), %	7.0	15.2	–	8.8	13.6	–	11.2	13.5
Operating profit (EBIT), SEK m	-43	347	n.a.	91	543	n.a.	437	889
Operating profit (EBIT), excl IAC, SEK m	-43	347	n.a.	91	543	n.a.	581	1,033
Operating margin, %	-1.6	9.6	–	1.5	7.8	–	3.4	6.6
Operating margin excl IAC, %	-1.6	9.6	–	1.5	7.8	–	4.6	7.6
Profit after financial items, SEK m	-72	325	n.a.	41	491	n.a.	353	803
Profit/loss after tax, SEK m	-56	258	n.a.	32	390	n.a.	253	611
Profit/loss after tax, excl IAC, SEK m	-56	258	n.a.	32	390	n.a.	382	740
Earnings/loss per share, before dilution, SEK	-0.33	1.53	n.a.	0.19	2.31	n.a.	1.50	3.62
Earnings/loss per share, before dilution excl IAC, SEK	-0.33	1.53	n.a.	0.19	2.31	n.a.	2.26	4.38
Earnings/loss per share, after dilution, SEK	-0.33	1.52	n.a.	0.19	2.30	n.a.	1.50	3.61
Earnings/loss per share, after dilution exkl IAC, SEK	-0.33	1.52	n.a.	0.19	2.30	n.a.	2.26	4.37
Operating cash flow, SEK m	716	618	-14	928	549	-41	1,808	1,429

Comments from the President and CEO

During the quarter we saw a gradual ease of restrictions in all markets and on April 12 we could finally reopen our retail stores in the UK. That meant that all our stores and manufacturing facilities across the Group were in full operation again after more than a year of hampered conditions.

Spending more time at home in the kitchen, coupled with a strong home refurbishment trend, has clearly impacted the market conditions favourably. We continue to have strong demand in the Nordics which resulted in organic growth of 13% (11% compared to 2019) and Central Europe of 29% (9% compared to 2019). The growth was predominantly driven by strong retail sales whilst project sales were flat in the Nordics and slightly growing in the Netherlands.

In the UK we are rebuilding the retail order book after having been closed during the very important Winter Sales in the first quarter. Organic growth in the region was 97% versus last year, however that corresponds to a decline of 15% compared to 2019. We expect retail sales to normalize in Q3, assuming no further lockdowns, whilst we anticipate it will take longer for the social housing segment and London property market to recuperate. On a positive note the growth in Magnet trade continues to perform well. We will continue to invest to strengthen the trade proposition further.

The global surge in demand for material has resulted in higher direct material cost also in our industry. As a consequence, we have adjusted our pricing already during the quarter, and anticipate further increases during the second half of the year.

As we are heading towards a new normal, we are really excited about the future. We have a strong underlying market, and the eased restrictions allow us to operate more efficiently to cater for the demand. We are also pushing on with several initiatives from our Tomorrow Together strategy. Initiatives such as trade growth in the UK, process harmonization and the K2020 aligned assortment are already starting to pay off. In June we partnered up with the construction company Wästbygg for the building of our state-of-the-art kitchen factory in Jönköping, which is progressing according to plan. Sustainability aspects are vital in designing the new factory and we continue to drive towards our Science Based Targets which were approved in December last year. We are also in the starting block of launching new beautiful kitchen designs. Exciting indeed!

President and CEO Jon Sintorn

Second quarter consolidated

Market overview

Consumer demand remains at an overall good level. Interest in home refurbishing such as kitchen investments has increased during the pandemic, as people are spending more time in their homes. However, restrictions to fight the spread of coronavirus negatively affected consumers' access to retail stores, especially in the UK where restrictions lasted until April 12. The trade market is deemed to be strong across all markets driven by increased demand for home renovations. The project markets in all countries but UK and Finland are growing on the back of pent-up demand and generally good activity in the house construction sector. The UK project market is still burdened by soft market conditions in London and in social housing.

Net sales, earnings and cash flow

The Group's net sales increased to SEK 3,622m (2,741). Growth was impacted by the low comparables last year on the back of the corona lock down measures. Organic growth for the Group was 35%. Nordic region grew organically by 13%, the U.K by 97% and Central Europe by 29%.

Gross margin increased to 39.0% (31.6) and gross profit rose to SEK 1,412m (866). Operating margin increased to 9.6% (-1.6) and the operating profit increased to SEK 347m (-43). The increase was primarily a result of normalised sales volumes across all regions, higher average order values and favourable mix. Changes in exchange rates impacted negatively by SEK 5m. Furlough support amounted to SEK 18m (124) included in other operating income/expenses. Second quarter 2020 includes onetime restructuring charges and bad debt provisions of SEK -108m.

Operating cash flow amounted to SEK 618m (716). Higher income contributed positively but was offset by increase in account receivables on the back of higher sales. Prior year was positively impacted by temporary government support in the form of delayed collection of VAT and certain employee taxes. Net debt excl. IFRS16 leases amounted to SEK 159m (871).

Analysis of net sales
	Q2
	%	SEK m
2020		2,741
Organic growth	35	929
–of which Nordic	13	221
–of which UK region	97	628
–of which Central Europe	29	80
Currency effects	-2	-48
2021	32	3,622

Currency effect on operating profit

		Q2
	Translati	Transacti	Total
SEKm	on effect	on effect	effect
Nordic region	0	-15	-15
UK region	0	10	10
CE region	0	0	0
Group	0	-5	-5

Store development
	Q2
Newly opened/closed, net	0
Number of own stores	224

					Group-wide and
	Nordic UK Central Europe			eliminations Group
		Q2		Q2		Q2		Q2		Q2	Ch.
SEKm	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	%
Net sales from external customers	1,804	1,989	645	1,274	292	359	–	–	2,741	3,622	32
Net sales from other regions	0	0	–	–	0	0	0	0	–	–	–
Net sales	1,804	1,989	645	1,274	292	359	0	0	2,741	3,622	32
Gross profit	669	795	94	469	82	121	21	27	866	1,412	63
Gross margin, %	37.1	40.0	14.6	36.8	28.1	33.7	–	–	31.6	39.0	–
Operating profit/loss	234	321	-239	31	25	42	-63	-47	-43	347	n.a
Operating margin, %	13.0	16.1	-37.1	2.4	8.6	11.7	–	–	-1.6	9.6	–

Second quarter, the regions

Nordic region

Net sales in the Nordic region increased to SEK 1,989m (1,804m). Organic growth was 13% (-2) primarily driven by strong growth in Denmark and in retail across all countries. Project sales in Finland declined as a result of fewer housing completions compared to last year.

Gross margin increased to 40.0% (37.1). Operating profit increased to SEK 321m (234) and the operating margin rose to 16.1% (13.0). Improved profitability was mainly driven by volume increase, higher average sales values and favourable mix. Changes in exchange rates had a negative impact of SEK -15m. Last year's second quarter included one-time restructuring costs and bad debt provisions totalling SEK -24m.

UK region

Net sales in the UK region rose to SEK 1,274m (645) compared with the second quarter 2020 which was heavily impacted by corona lockdowns. The organic growth was 97% (-56) with strong growth across most segments. Sales to London property developers and social housing continued to be hampered by slow recovery after the corona lock downs.

Gross margin increased to 36.8% (14.6). Operating profit increased to SEK 31m (-239) and the operating margin was 2.4% (-37.1). Currency impact on operating profit was positive SEK 10m. Furlough support amounted to SEK 18m (105). Prior year's second quarter was charged with one-time restructuring costs and bad debt provisions totalling SEK -57m.

Central Europe region

Net sales in the Central Europe region increased to SEK 359m (292). Organic growth was 29% (-16), partly due to low comparative figures last year which was negatively impacted by corona restrictions. Sales in Austria was positively impacted by a strong consumer market. In the Netherlands, sales benefitted from pent-up demand in the housing construction sector.

Gross margin increased to 33.7% (28.1). Operating profit increased to SEK 42m (25) and the operating margin increased to 11.7% (8.6), driven mainly by the high growth rate and an improved productivity.

January – June, consolidated

• Net sales for the first six months totalled SEK 6,995m (6,186).
• Operating profit amounted to SEK 543m (91), corresponding to an operating margin of 7.8% (1.5).
• Changes in exchange rates impacted operating profit positively by SEK 10m.
• Profit after tax amounted to SEK 390m (32), corresponding to earnings per share after dilution of SEK 2.30 (0.19).
• Operating cash flow increased to SEK 549m (928).
• Net debt, excluding IFRS16 lease liabilities, declined to SEK 159m (871).

Net sales, earnings and cash flow

Net sales for the first half-year increased by 13% to SEK 6,995m (6,186). The organic growth was 17% (-14), with increases in all regions, due to low comparative figures last year impacted by corona lockdowns.

Gross margin increased to 38.5% (34.6) and operating margin rose to 7.8% (1.5) mainly due to the large sales volume increase, higher average order values and a favourable mix development. Operating profit increased to SEK 543m (91). Changes in exchange rates impacted positively by SEK 10m. Furlough support was SEK 25m (124). Prior year includes one-time restructuring costs and bad debt provisions amounting to SEK -108m.

Operating cash flow declined to SEK 549m (928). Higher profit than prior year was offset by an increase in working capital on the back of growing sales.

Analysis of net sales
		Jan - Jun
	%	SEK m
2020		6,186
Organic growth	17	1,019
–of which Nordic	11	365
–of which UK	26	517
–of which Central Europé	24	137
Currency effects	-4	-210
2021	13	6,995

Currency effect on operating income

	Jan - Jun
	Translati	Transacti	Total
SEKm	on effect	on effect	effect
Nordic region	-5	10	5
UK region	0	5	5
CE region	0	0	0
Group	-5	15	10

Store development
	Jan - Jun
Newly opened/closed, net	-1
Number of own stores	224

		Group-wide &
	Nordic		UK		Central Europe		eliminations		Group
		Jan - Jun		Jan - Jun		Jan - Jun		Jan - Jun		Jan - Jun	Ch.
SEKm	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	%
Net sales from external customers	3,543	3,815	2,050	2,479	593	701	–	–	6,186	6,995	13
Net sales from other regions	0	0	–	–	0	0	0	0	–	–	–
Net sales	3,543	3,815	2,050	2,479	593	701	0	0	6,186	6,995	13
Gross profit	1,331	1,515	599	891	173	230	39	58	2,142	2,694	26
Gross profit excl. IAC	1,331	1,515	599	891	173	230	39	58	2,142	2,694	26
Gross margin, %	37.6	39.7	29.2	35.9	29.2	32.8	–	–	34.6	38.5	–
Gross margin excl. IAC, %	37.6	39.7	29.2	35.9	29.2	32.8	–	–	34.6	38.5	–
Operating profit/loss	432	570	-260	-16	43	79	-124	-90	91	543	n.a.
Operating profit/loss excl IAC	432	570	-260	-16	43	79	-124	-90	91	543	n.a.
Operating margin, %	12.2	14.9	-12.7	-0.6	7.3	11.3	–	–	1.5	7.8	–
Operating margin excl IAC, %	12.2	14.9	-12.7	-0.6	7.3	11.3	–	–	1.5	7.8	–
Net financial items									-50	-52	-4
Profit after financial items									41	491	n.a.

Other information

Financing

Nobia's long-term financing consists of two multicurrency revolving credit facilities totalling SEK 5 billion. A SEK 2 billion facility with a maturity in 2023 (with the option to request an extension of up to two years at the lenders' sole discretion) and a SEK 3 billion facility with maturity in 2025. The facilities have leverage (net debt / EBITDA) and interest cover (EBITDA to net interest expenses) covenants. At the end of June 2021, SEK 483m had been utilised. Group cash and cash equivalents amounted to SEK 737m (1,565).

Net debt excluding IFRS 16 lease liabilities and pensions amounted to SEK -255m (SEK 231). Net debt including IFRS 16 lease liabilities of SEK 1,889m (2,459) and pension provisions of SEK 414m (640), amounted to SEK 2,048m (3,330).

The net debt/equity ratio decreased to 4% (22) or 47% (84) if including IFRS16 Lease liabilities. Leverage, (excluding IFRS 16 leases and items affecting comparability on 12 months rolling basis) was 0.12 times (0.96).

Net financial items amounted to SEK -52m (-50), of which net of returns on pension assets and interest expense on pension liabilities was SEK -9m (-11), interest on leases was SEK -20m (-25) and other net interest expense was SEK -23m (-14).

Items affecting comparability

Nobia recognises items affecting comparability separately to distinguish the performance of the underlying operations. Items affecting comparability refer to items that affect comparisons insofar as they do not recur with the same regularity as other items.

No items affecting comparability have been recognised in 2021. 2020 includes items affecting comparability in the fourth quarter referring to write down of machinery and building assets in the Tidaholm factory, which is to be replaced by a new factory in 2024, and a pension adjustment in the UK. See page 16 for details.

Personnel

The number of employees on 30 June 2021 was 6,014 (5,958).

Annual General Meeting

Nobia's Annual General Meeting 2021 (AGM) was held via postal voting without physical attendance on April 29. The AGM resolved to adopt all proposals, including a dividend of SEK 2 per share for the fiscal year 2020 which was paid to shareholders through Euroclear Sweden AB on May 6. Further information regarding decisions and proposals at the AGM is available on Nobia's website: www.nobia.com/agm2021

Agreement for construction of new factory building

Logistic Contractor, part of Wästbygg Group, has been contracted for the construction of the building for Nobia's new production facility in Jönköping that is to be in full operation by end of 2024. The building is to be handed over during summer 2022 and will be certified according to the BREEAM Very Good standard, which focuses strongly on sustainability in line with Nobia's high ambitions in this area.

New member of Group management team

Philip Sköld was appointed EVP Strategy & Transformation and member of Nobia's Group Management as of May 1, 2021. Philip was previously Director Transformation Office Nordic Region.

Nobia to repurchase own shares

The Annual General Meeting (AGM) resolved on April 29, 2021, to authorize the Board to decide on the repurchase of own shares. Based on this authorization, the Board has decided to initiate a repurchase program. The aim of the repurchase program is to meet the requirements arising under Nobia's outstanding Performance Share Plans, meaning securing delivery of Nobia shares to the participants and securing and covering the costs for social fees that may arise. A total maximum of 600,000 shares may be acquired, up until September 30, 2021. Refer to the Consolidated Income Statement on page 11 for the total number of shares in Nobia. Completed acquisitions of own shares will be disclosed and reported in accordance with applicable laws and regulations as well as Nasdaq Stockholm's Nordic Main Market Rulebook for Issuers of Shares. As of June 30, 70,000 shares had been repurchased.

Coronavirus, Brexit and its effects on Nobia

The corona pandemic has continued to hamper Nobia's ability to serve the market during 2021. Retail stores have been closed most of the first quarter and beginning of the second quarter 2021 in the UK, Denmark, and Norway. Even if the current risk for lockdowns have been reduced considerably on the back of lower infection rates, no predictions can be made of future measures that countries may take in response to the pandemic.

The pandemic has increased the demand for home renovations and kitchen refurbishments which has impacted Nobia's core markets positively. However, the higher demand has also resulted in capacity constraints and inflationary pressure in certain parts of the supply chain, such as the raw material supply, installation services and transport. To secure availability and mitigate higher input cost, price increases have been implemented during the first half of 2021, although there will be a lag due to the current order book, and are likely to be continued during the second half of the year.

UKs withdrawal from the EU has to date had very limited impact on Nobia's ability to operate normally. However, as EU nationals have restricted access to the UK labour market, the risk of capacity constraints is in foremost transportation and installation services has increased.

Risks

Nobia has a model for risk management, which aims to identify, control and manage risks. The identified risks and how they are managed are reported to the Nobia Board of Directors on a regular basis.

Nobia's financing and management of financial risks is centralised within the Nobia finance function and is conducted on the basis of a finance policy adopted by the Board of Directors. Financial risks refer primarily to currency exchange rates, interest rates, financing, tax and credit risks. In the ordinary course of business, the Group is exposed to legal risks such as commercial, product liability and other disputes and provides for them as appropriate. The demand for Nobia's products is affected by changes in the customers' investment and production levels. A general economic downturn, a widespread financial crisis and other macroeconomic disturbances may, directly or indirectly, affect the Group negatively both in terms of revenues and profitability.

For a more detailed description of Nobia's risks and uncertainties, as well as risk management, refer to pages 50-57 in the 2020 Annual Report.

The Board of Directors and CEO assure that this six-month report provides a fair view of the Parent Company's and the Group's operations, financial position and profits, and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.

Stockholm, 19 July 2021

Nora Førisdal Larssen Chair

George Adams Board member

Jan Svensson Board member

Carsten Rasmussen Board member

Marlene Forsell Board member

Arja Taaveniku Board member

Jon Sintorn President & CEO

Per Bergström Employee representative

Mats Karlsson Employee representative

This interim report has not been subject for review by the Group's auditors.

Nobia AB, Corporate Registration Number 556528-2752

Consolidated income statement

		Q2 Jan - Jun			Jan - Dec	12 mos.
SEK m	2020	2021	2020	2021	2020	rolling
Net sales	2,741	3,622	6,186	6,995	12,741	13,550
Cost of goods sold	-1,875	-2,210	-4,044	-4,301	-8,297	-8,554
Gross profit	866	1,412	2,142	2,694	4,444	4,996
Selling and administrative expenses	-1,086	-1,099	-2,226	-2,212	-4,227	-4,213
Other income/expenses	177	34	175	61	220	106
Operating profit	-43	347	91	543	437	889
Net financial items	-29	-22	-50	-52	-84	-86
Profit after financial items	-72	325	41	491	353	803
Tax	16	-67	-9	-101	-100	-192
Profit after tax	-56	258	32	390	253	611
Total profit attributable to:
Parent Company shareholders	-56	258	32	390	253	611
Total depreciation	-215	-202	-431	-406	-852	-827
Total impairment	-21	–	-21	–	-137	-116
Gross margin, %	31.6	39.0	34.6	38.5	34.9	36.9
Operating margin, %	-1.6	9.6	1.5	7.8	3.4	6.6
Return on operating capital, %	–	–	–	–	6.0	12.9
Return on shareholders equity, %	–	–	–	–	6.1	14.3
Earnings per share before dilution, SEK	-0.33	1.53	0.19	2.31	1.50	3.62
Earnings per share after dilution, SEK	-0.33	1.52	0.19	2.30	1.50	3.61
Number of shares at period end before dilution, 1	168,853	168,853	168,853	168,853	168,853	168,853
Average number of shares before dilution, 1	168,853	168,853	168,853	168,853	168,853	168,853
Number of shares after dilution at period end, 1	169,290	169,394	169,257	169,390	169,293	169,387
Average number of shares after dilution, 1	168,961	169,110	169,053	169,365	169,293	169,153

1) Excluding treasury shares

Consolidated statement of comprehensive income

		Q2	Jan - Jun		Jan - Dec	12 mos.
SEK m	2020	2021	2020	2021	2020	rolling
Profit after tax	-56	258	32	390	253	611
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange-rate differences attributable to
translation of foreign operations	-334	-87	-191	184	-399	-24
Cash flow hedges before tax1	-28	16	24	11	1	-12
Tax attributable to change in hedging reserve
for the period2	6	-3	-5	-2	-2	1
	-356	-74	-172	193	-400	-35
Items that will not be reclassified to
profit or loss
Remeasurements of defined benefit pension plans	-219	10	-190	119	-135	173
Tax relating to remeasurements of defined benefit pension plans	37	0	32	-19	30	-21
	-182	10	-158	100	-105	152
Other comprehensive income	-538	-64	-330	293	-505	117
Total comprehensive income	-595	194	-298	683	-252	728
Total comprehensive income attributable to:
Parent Company shareholders	-595	194	-298	683	-252	728

1) Reversal recognised in profit and loss amounts to a SEK 22m (15). New provision amounts to SEK -11m (10). (Jan-Dec 2020:-17)

2) Reversal recognised in profit and loss amounts to a SEK -5m (-3). New provision amounts to SEK 2m (-2). (Jan-Dec 2020: 4)

Consolidated balance sheet

	30 Jun		31 Dec
SEK m	2020	2021	2020
ASSETS
Goodwill	2,933	2,941	2,830
Other intangible fixed assets	182	197	221
Tangible fixed assets	1,553	1,374	1,340
Right-of-use assets	2,485	1,912	2,200
Long-term receivables, interest-bearing	2	0	0
Long-term receivables	98	89	96
Deferred tax assets	94	93	119
Total fixed assets	7,347	6,606	6,806
Inventories	1,040	1,056	1,035
Accounts receivable	1,384	1,606	1,213
Current receivables, interest-bearing	7	1	2
Other receivables	385	452	394
Total current receivables	1,776	2,059	1,609
Cash and cash equivalents, interest-bearing	1,565	737	635
Total current assets	4,381	3,852	3,279
Total assets	11,728	10,458	10,085
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	57	57	57
Other capital contributions	1,501	1,504	1,506
Reserves	-117	-152	-345
Profit brought forward	2,542	2,968	2,816
Total shareholders' equity attributable to Parent Company shareholders	3,983	4,377	4,034
Total shareholders' equity	3,983	4,377	4,034
Provisions for pensions, interest-bearing	640	414	556
Other provisions	56	55	45
Deferred tax liabilities	54	35	35
Lease liabilities, interest-bearing	2,041	1,509	1,778
Other long-term liabilities, interest-bearing	1,805	483	285
Other long-term liabilities, non interest-bearing	1	0	0
Total long-term liabilities	4,597	2,496	2,699
Current lease liabilities, interest-bearing	418	380	405
Current liabilities and provisions	2,730	3,205	2,947
Total current liabilities	3,148	3,585	3,352
Total shareholders' equity and liabilities	11,728	10,458	10,085
BALANCE-SHEET RELATED KEY RATIOS
Equity/assets ratio, %	34	42	40
Debt/equity ratio, %	84	47	59
Net debt, closing balance, SEK m	3,330	2,048	2,387
Operating capital, closing balance, SEK m	7,313	6,425	6,421
Capital employed, closing balance, SEK m	8,887	7,163	7,058

Changes in consolidated shareholders' equity

Attributable to Parent Company shareholders
Share capital	Other capital contributions	Exchange-rate differences attributable to translation of foreign operations	Cash-flow hedges after tax	Profit brought forward	Total share holders equity
57	1,497	68	-13	2,668	4,277
–	–	–	–	32	32
–	–	-191	19	-158	-330
–	–	-191	19	-126	-298
–	4	–	–	–	4
57	1,501	-123	6	2,542	3,983
57	1,506	-331	-14	2,816	4,034
–	–	–	–	390	390
–	–	184	9	100	293
–	–	184	9	490	683
–	–	–	–	-338	-338
–	-2	–	–	–	-2
57	1,504	-147	-5	2,968	4,377

Consolidated cash-flow statement

	Q2		Jan - Jun		Jan - Dec	12 mos.
SEK m	2020	2021	2020	2021	2020	rolling
Operating activities
Operating profit	-43	347	91	543	437	889
Depreciation/Impairment	236	202	452 1	406 2	989 3	943
Adjustments for non-cash items	4	5	3	10	50	57
Tax paid	12	-16	-13	-57	-118	-162
Change in working capital	537	147	500	-239	710	-29
Cash flow from operating activities	746	685	1,033	663	2,068	1,698
Investing activities
Investments in intangible and tangible fixed assets	-33	-73	-116	-128	-308	-320
Other items in investing activities	3	6	11	14	48	51
Interest received	-10	0	0	0	2	2
Change in interest-bearing assets	38	0	-3	1	5	9
Cash flow from investing activities	-2	-67	-108	-113	-253	-258
Total cashflow from operating and
investing activities	744	618	925	550	1,815	1,440
Financing activities
Interest paid	-8	-19	-35	-42	-63	-70
Change in interest-bearing liabilities	-80	8	454 4	-97 5	-1,360 6	-1,911
Dividend	–	-338	–	-338	–	-338
Cash flow from financing activities	-88	-349	419	-477	-1,423	-2,319
Cash flow for the period excluding exchange-rate differences in
cash and cash equivalents	656	269	1,344	73	392	-879
Cash and cash equivalents at beginning of the period	958	476	257	635	257	1,565
Cash flow for the period	656	269	1,344	73	392	-879
Exchange-rate differences in cash and cash equivalents	-49	-8	-36	29	-14	51
Cash and cash equivalents at period-end	1,565	737	1,565	737	635	737
Operating Cash flow *		Q2		Jan - Jun	Jan - Dec	12 mos.

2020	2021	2020	2021	2020	rolling
					1,698
-33	-73	-116	-128	-308	-320
3	6	11	14	48	51
716	618	928	549	1,808	1,429
	746	685	1,033	663	2,068

* Alternative Performance Measure, refer to "Definitions".

1) Impairments during the period amounted to SEK 21m and pertained to other intangible assets.

2) No Impairments during the period

3) Impairments during the period amounted to SEK 137m and pertained to land and buildings by SEK 55m, machinery by SEK 48m and other intangible assets by SEK 34m.

4) Net of repayment and raising of loans amounted to SEK 671m. Amortisation of leasing amounted to SEK 205m

5) Net of repayment and raising of loans amounted to SEK 198m. Amortisation of leasing amounted to SEK 244m.

6) Net of repayment and raising of loans amounted to SEK -849m. Amortisation of leasing amounted to SEK 449m.

Analysis of net debt

	Q2		Jan - Jun	Jan - Dec	12 mos.
SEK m	2020	2021	2020	2021	2020	rolling
Opening balance, net debt		3,865 2,408	3,819	2,387	3,819	3,330
New leasing contracts/Closed leasing contracts in advance, net	80	-62	264	-119	304	-79
Translation differences	-144	-28	-62	58	-163	-43
Operating cash flow	-716	-618	-928	-549	-1,808	-1,429
Interest paid, net	18	19	35	42	61	68
Remeasurements of defined benefit pension plans	217	-12	188	-121	147	-162
Other change in pension liabilities	10	3	14	12	27	25
Dividend	–	338	–	338	–	338
Closing balance, net debt		3,330 2,048	3,330	2,048	2,387	2,048

Items affecting comparability

	Q2			Jan - Jun	Jan - Dec	12 mos.
Items affecting comparability, SEK m	2020	2021	2020	2021	2020	rolling
Decision closure Tidaholm factory 2024	–	–	–	–	136	136
Pensionadjustment in UK	–	–	–	–	8	8
Items affecting comparability in operating profit	–	–	–	–	144	144
Items affecting comparability in taxes	–	–	–	–	-15	-15
Items affecting comparability, total loss	–	–	–	–	129	129
		Q2		Jan - Jun	Jan - Dec	12 mos.
Items affecting comparability per function, SEK m	2020	2021	2020	2021	2020	rolling
Items affecting profitability in gross profit	–	–	–	–	105	105
Items affecting profitability in in operating profit	–	–	–	–	144	144
Items affecting profitability in in taxes	–	–	–	–	-15	-15
Items affecting profitability in in profit after tax	–	–	–	–	129	129
Items affecting comparability		Q2		Jan - Jun	Jan - Dec	12 mos.
in gross profit per region, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	–	–	–	–	112	112
UK	–	–	–	–	–	–
Central Europe	–	–	–	–	–	–
Group-wide and eliminations	–	–	–	–	-7	-7
Group	–	–	–	–	105	105
Items affecting comparability	Q2			Jan - Jun	Jan - Dec	12 mos.
in operating profit per region, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	–	–	–	–	132	132
UK	–	–	–	–	8	8
Central Europe	–	–	–	–	–	–
Group-wide and eliminations	–	–	–	–	4	4
Group	–	–	–	–	144	144

Note 1 - Accounting policies

This interim report has been prepared in accordance with IFRS, with the application of IAS 34 Interim Financial Reporting. For the Parent Company, accounting policies are applied in accordance with Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. Nobia has applied the same accounting policies in this interim report as were applied in the 2020 Annual Report.

Note 2 - References

Segment information pages 4 and 5. Loan and shareholder's equity transactions, page 7. Items affecting comparability, page 16. Net sales by product group, page 24.

Note 3 - Financial instruments - fair value

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 5m (19) and liabilities at a value of SEK 14m (9). 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".

Note 4 - Related-party transactions

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 88m (73) during the second quarter of 2021. The Parent Company's reported dividends from participations in Group companies totalled SEK 500m (0).

Parent Company

Condensed Parent Company income statement		Q2		Jan - Jun	Jan - Dec 12 mos.
SEK m	2020	2021	2020	2021	2020	rolling
Net sales	73	88	151	177	337	363
Administrative expenses	-99	-117	-227	-236	-506	-515
Other operating income	3	0	5	1	8	4
Other operating expense	-4	1	-5	-1	-9	-5
Operating loss	-27	-28	-76	-59	-170	-153
Profit from shares in Group companies	–	500	–	500	–	500
Other financial income and expenses	-165	-59	-73	78	-191	-40
Profit/loss after financial items	-192	413	-149	519	-361	307
Group contribution received	–	–	–	–	155	155
Tax on profit/loss for the period	–	–	–	–	-1	-1
Profit/loss for the period	-192	413	-149	519	-207	461
Parent Company balance sheet			30 jun		31 Dec
SEK m			2020	2021	2020
ASSETS
Fixed assets
Tangible fixed assets			30	21	26
Shares and participations in Group companies			1,382	1,386	1,385
Deferred tax assets			5	4	5
Total fixed assets			1,417	1,411	1,416
Current assets
Current receivables
Accounts receivable			3	0	0
Receivables from Group companies			2,162	2,819	2,833
Other receivables			31	25	28
Prepaid expenses and accrued income			109	145	81
Cash and cash equivalents			651	498	436
Total current assets			2,956	3,487	3,378
Total assets			4,373	4,898	4,794
SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITIES Shareholders' equity
Restricted shareholders' equity
Share capital
Statutory reserve			57	57	57
			1,671	1,671	1,671
Non-restricted shareholders' equity			1,728	1,728	1,728
Share premium reserve			52	52	52
Buy-back of shares			-82	-88	-82
Profit brought forward			1,311	774	1,316
Profit/loss for the period			-149	519	-207
			1,132	1,257	1,079
Total shareholders' equity			2,860	2,985	2,807
Long-term liabilities
Provisions for pensions			21	24	22
Deferred tax liabilities			5	3	5
Long term interest-bearing liabilities			21	14	17
Total long-term liabilities			47	41	44
Current liabilities
Other interest-bearing liabilities			7	6	7
Accounts payable			31	68	31
Liabilities to Group companies			1,367	1,737	1,815
Current tax liabilities			–	–	–
Other liabilities			29	19	39
Accrued expenses and deferred income			32	42	51
Total current liabilities Total shareholders' equity, provisions and liabilities			1,466	1,872	1,943
			4,373	4,898	4,794

Comparative data per region (1)

		Q2		Jan - Jun	Jan - Dec	12 mos.
Net sales, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	1,804	1,989	3,543	3,815	6,801	7,073
UK	645	1,274	2,050	2,479	4,649	5,078
Central Europe	292	359	593	701	1,291	1,399
Group-wide and eliminations	0	0	0	0	0	0
Group	2,741	3,622	6,186	6,995	12,741	13,550
		Q2		Jan - Jun	Jan - Dec	12 mos.
Gross profit, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	669	795	1,331	1,515	2,455	2,639
UK	94	469	599	891	1,509	1,801
Central Europe	82	121	173	230	419	476
Group-wide and eliminations	21	27	39	58	61	80
Group	866	1,412	2,142	2,694	4,444	4,996
		Q2		Jan - Jun	Jan - Dec	12 mos.
Gross profit excl. IAC, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	669	795	1,331	1,515	2,567	2,751
UK	94	469	599	891	1,509	1,801
Central Europe	82	121	173	230	419	476
Group-wide and eliminations	21	27	39	58	54	73
Group	866	1,412	2,142	2,694	4,549	5,101
		Q2		Jan - Jun	Jan - Dec	12 mos.
Gross margin, %	2020	2021	2020	2021	2020	rolling
Nordic	37.1	40.0	37.6	39.7	36.1	37.3
UK	14.6	36.8	29.2	35.9	32.5	35.5
Central Europe	28.1	33.7	29.2	32.8	32.5	34.0
Group	31.6	39.0	34.6	38.5	34.9	36.9
Gross margin excl. IAC, %		Q2		Jan - Jun	Jan - Dec	12 mos.
	2020	2021	2020	2021	2020	rolling
Nordic	37.1	40.0	37.6	39.7	37.7	38.9
UK	14.6	36.8	29.2	35.9	32.5	35.5
Central Europe	28.1	33.7	29.2	32.8	32.5	34.0
Group	31.6	39.0	34.6	38.5	35.7	37.6

Comparative data per region (2)

	Q2			Jan - Jun	Jan - Dec	12 mos.
Operating profit, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	234	321	432	570	765	903
UK	-239	31	-260	-16	-234	10
Central Europe	25	42	43	79	143	179
Group-wide and eliminations	-63	-47	-124	-90	-237	-203
Group	-43	347	91	543	437	889
		Q2		Jan - Jun	Jan - Dec	12 mos.
Operating profit excl IAC, SEK m	2020	2021	2020	2021	2020	rolling
Nordic	234	321	432	570	897	1,035
UK	-239	31	-260	-16	-226	18
Central Europe	25	42	43	79	143	179
Group-wide and eliminations	-63	-47	-124	-90	-233	-199
Group	-43	347	91	543	581	1,033
		Q2		Jan - Jun	Jan - Dec	12 mos.
Operating margin, %	2020	2021	2020	2021	2020	rolling
Nordic	13.0	16.1	12.2	14.9	11.2	12.8
UK	-37.1	2.4	-12.7	-0.6	-5.0	0.2
Central Europe	8.6	11.7	7.3	11.3	11.1	12.8
Group	-1.6	9.6	1.5	7.8	3.4	6.6
	Q2			Jan - Jun	Jan - Dec	12 mos.
Operating margin excl IAC, %	2020	2021	2020	2021	2020	rolling
Nordic	13.0	16.1	12.2	14.9	13.2	14.6
UK	-37.1	2.4	-12.7	-0.6	-4.9	0.4
Central Europe	8.6	11.7	7.3	11.3	11.1	12.8
Group	-1.6	9.6	1.5	7.8	4.6	7.6

Quarterly data per region (1)

		2021
Net sales, SEK m	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	1,739	1,804	1,491	1,767	1,826	1,989
UK	1,405	645	1,295	1,304	1,205	1,274
Central Europe	301	292	319	379	342	359
Group-wide and eliminations	0	0	0	0	0	0
Group	3,445	2,741	3,105	3,450	3,373	3,622

	2020				2021
Gross profit, SEK m	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	662	669	538	586	720	795
UK	505	94	442	468	422	469
Central Europe	91	82	108	138	109	121
Group-wide and eliminations	18	21	20	2	31	27
Group	1,276	866	1,108	1,194	1,282	1,412

		2020	2021
Gross profit excl IAC, SEK m	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	662	669	538	698	720	795
UK	505	94	442	468	422	469
Central Europe	91	82	108	138	109	121
Group-wide and eliminations	18	21	20	-5	31	27
Group	1,276	866	1,108	1,299	1,282	1,412

			2021
Gross margin, %	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	38.1	37.1	36.1	33.2	39.4	40.0
UK	35.9	14.6	34.1	35.9	35.0	36.8
Central Europe	30.2	28.1	33.9	36.4	31.9	33.7
Group	37.0	31.6	35.7	34.6	38.0	39.0

	2020			2021
Gross margin excl IAC, %	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	38.1	37.1	36.1	39.5	39.4	40.0
UK	35.9	14.6	34.1	35.9	35.0	36.8
Central Europe	30.2	28.1	33.9	36.4	31.9	33.7
Group	37.0	31.6	35.7	37.7	38.0	39.0

Quarterly data per region (2)

	2020				2021
Operating profit, SEK m	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	198	234	183	150	249	321
UK	-21	-239	13	13	-47	31
Central Europe	18	25	38	62	37	42
Group-wide and eliminations	-61	-63	-39	-74	-43	-47
Group	134	-43	195	151	196	347
		2020			2021
Operating profit excl IAC, SEK m	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	198	234	183	282	249	321
UK	-21	-239	13	21	-47	31
Central Europe	18	25	38	62	37	42
Group-wide and eliminations	-61	-63	-39	-70	-43	-47
Group	134	-43	195	295	196	347
		2020			2021
Operating margin, %	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	11.4	13.0	12.3	8.5	13.6	16.1
UK	-1.5	-37.1	1.0	1.0	-3.9	2.4
Central Europe	6.0	8.6	11.9	16.4	10.8	11.7
Group	3.9	-1.6	6.3	4.4	5.8	9.6
	2020				2021
Operating margin excl IAC, %	Q1	Q2	Q3	Q4	Q1	Q2
Nordic	11.4	13.0	12.3	16.0	13.6	16.1
UK	-1.5	-37.1	1.0	1.6	-3.9	2.4
Central Europe	6.0	8.6	11.9	16.4	10.8	11.7
Group	3.9	-1.6	6.3	8.6	5.8	9.6

Operating capital per region

	30 Jun	31 Dec
Operating capital Nordic region, SEK m	2020	2021	2020
Operating assets	3,440	2,991	2,939
Operating liabilities	1,581	1,725	1,544
Operating capital	1,859	1,266	1,395

	30 Jun	31 Dec
Operating capital UK region, SEK m	2020	2021	2020
Operating assets	3,686	3,559	3,590
Operating liabilities	948	1,144	1,133
Operating capital	2,738	2,415	2,457

	30 Jun	31 Dec
Operating capital Central Europe region, SEK m	2020	2021	2020
Operating assets	628	636	558
Operating liabilities	204	244	198
Operating capital	424	392	360

	30 Jun	31 Dec
Operating capital Group-wide and eliminations, SEK m	2020	2021	2020
Operating assets	2,398	2,535	2,361
Operating liabilities	106	183	152
Operating capital	2,292	2,352	2,209

	30 Jun	31 Dec
Operating capital, SEK m	2020	2021	2020
Operating assets	10,152	9,721	9,448
Operating liabilities	2,839	3,296	3,027
Operating capital	7,313	6,425	6,421

Comparative data by product group

		Q2		Jan - Jun	Jan - Dec	12 mos.
Net sales Nordic by product group, %	2020	2021	2020	2021	2020	rolling
Kitchen furnitures	68	70	67	69	67	68
Installation services	5	5	6	5	6	5
Other products	27	25	27	26	27	27
Total	100	100	100	100	100	100
		Q2	Jan - Jun		Jan - Dec	12 mos.
Net sales UK by product group, %	2020	2021	2020	2021	2020	rolling
Kitchen furnitures	61	62	62	62	62	62
Installation services	6	5	6	5	6	6
Other products	33	33	32	33	32	32
Total	100	100	100	100	100	100
		Q2	Jan - Jun		Jan - Dec	12 mos.
Net sales Central Europe by product group, %	2020	2021	2020	2021	2020	rolling
Kitchen furnitures	56	61	56	60	58	59
Installation services	11	9	11	9	10	10
Other products	33	30	33	31	32	31
Total	100	100	100	100	100	100
		Q2	Jan - Jun		Jan - Dec	12 mos.
Net sales Group by product group, %	2020	2021	2020	2021	2020	rolling
Kitchen furnitures	65	66	65	66	64	65
Installation services	6	6	6	5	6	6
Other products	29	28	29	29	30	29

Reconciliation of alternative performance measures (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 27-28.

	Q2			Jan - Jun
Analysis of external net sales Nordic Region	%	SEK m		%	SEK m
2020			1,804		3,543
Organic growth	13		221	11	365
Currency effects	-2		-36	-3	-93
2021	10		1,989	8	3,815
	Q2			Jan - Jun
Analysis of external net sales UK Region	%	SEK m		%	SEK m
2020			645		2,050
Organic growth	97		628	26	517
Currency effects	0		1	-5	-88
2021	97		1,274	21	2,479
	Q2			Jan - Jun
Analysis of external net sales Central Europe Region	%	SEK m		%	SEK m
2020			292		593
Organic growth	29		80	24	137
Currency effects	-6		-13	-6	-29
2021	23		359	18	701
Operating profit before depreciation			Q2		Jan - Jun	Jan - Dec	12 mos.
and impairment (EBITDA), SEK m		2020	2021	2020	2021	2020	rolling
Operating profit		-43	347	91	543	437	889
Depreciation and impairment		236	202	452	406	989	943
Operating profit before depreciation
and impairment (EBITDA)		193	549	543	949	1,426	1,832
Net Sales		2,741	3,622	6,186	6,995	12,741	13,550
% of sales		7.0%	15.2%	8.8%	13.6%	11.2%	13.5%

		Q2		Jan - Jun	Jan - Dec	12 mos.
Profit/loss after tax excluding IAC, SEKm	2020	2021	2020	2021	2020	rolling
Profit/loss after tax	-56	258	32	390	253	611
Items affecting comparability net after tax	–	–	–	–	129	129
Profit/loss after tax excluding IAC	-56	258	32	390	382	740

	Jan - Dec	12 mos.
Average equity, SEK m	2020	rolling
OB Equity attributable to Parent Company shareholders	4,277	3,983
CB Equity attributable to Parent Company shareholders	4,034	4,377
Average equity before adjustment of increases and
decreases in capital	4,156	4,180
Adjustment for increases and decreases in capital not occured in the
middle of the period	–	–

Reconciliation of alternative performance measures (2)

	30 Jun		31 Dec
Net debt, SEK m	2020	2021	2020
Provisions for pensions, interest-bearing	640	414	556
Other long-term liabilities, interest-bearing	3,846	1,992	2,063
Current liabilities, interest-bearing	418	380	405
Interest-bearing liabilities	4,904	2,786	3,024
Long-term receivables, interest-bearing	-2	0	0
Current receivables, interest-bearing	-7	-1	-2
Cash and cash equivalents, interest-bearing	-1,565	-737	-635
Interest-bearing assets	-1,574	-738	-637
Net debt	3,330	2,048	2,387
	30 Jun		31 Dec
Net debt excl. IFRS 16 Leases and pension provisions, SEK m	2020	2021	2020
Net debt	3,330	2,048	2,387
Of which IFRS 16 Leases	2,459	1,889	2,183
Of which provisions for pensions	640	414	556
Net debt excl. IFRS 16 Leases	871	159	204
Net debt excl. IFRS 16 Leases and provision for pensions	231	-255	-352

	30 Jun		31 Dec
Operating capital, SEK m	2020	2021	2020
Total assets	11,728	10,458	10,085
Other provisions	-56	-55	-45
Deferred tax liabilities	-54	-35	-35
Other long-term liabilities, non interest-bearing	-1	–	0
Current liabilities, non interest-bearing	-2,730	-3,205	-2,947
Non-interest-bearing liabilities	-2,841	-3,295	-3,027
Capital employed	8,887	7,163	7,058
Interest-bearing assets	-1,574	-738	-637
Operating capital	7,313	6,425	6,421
	Jan - Dec	12 mos.

Average operating capital, SEK m	2020	rolling
OB Operating capital	8,096	7,313
CB Operating capital	6,421	6,425
Average operating capital before adjustments of acquisitions
and divestments	7,259	6,869

Definitions

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 excl. 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 provisions for pensions and leases.	Net debt is a liquidity metric used to determine how well a company can pay all of its debts, pension liabilities and leasing obligations if they were due immediately. The measure is used as a component in the debt/equity ratio.
Operating capital	Capital employed excl. 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, excl. cash flow from acquisitions/divestments of operations, interest received, and	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.

Performance

measure	Calculation	Purpose
	increase/decrease in interest-bearing assets.
Organic growth	Change in net sales, excl. acquisitions, divestments and changes in exchange rates.	Organic growth facilitates a comparison of sales over time by comparing the same operations and excl. 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 financial position and thus the 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).

For further information

Contact any of the following on +46 (0)8 440 16 00 or ir@nobia.com

• Kristoffer Ljungfelt, CFO
• Tobias Norrby, Head of Investor Relations

Presentation

The interim report will be presented on Monday July 19 at 14:00 CET in a webcast teleconference that can be followed on Nobia's website or on https://edge.media-server.com/mmc/p/geq8de3p To participate in the teleconference, and thus have the possibility to ask questions, call one of the following numbers:

Sweden: +46 8 56 64 26 51 UK: +44 33 33 00 08 04 USA: +1 631 913 1422 Pin code: 28105271#

Financial calendar

October 26: Interim report for January-September 2021.

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 19 July 2021 at 12:00 CET.

Nobia AB • Blekholmstorget 30 E7 • SE-111 64 Stockholm • Tel +46 8 440 16 00 www.nobia.com. Corporate Registration Number: 556528–2752 • Board domicile: Stockholm, Sweden