Interim report January-June 2013

Net sales for the second quarter amounted to SEK 3,262 million (3,449). Organic growth totalled 2 per cent (neg: 5). Operating profit excluding restructuring costs of SEK 36 million (62) amounted to SEK 249 million (205), corresponding to an operating margin of 7.6 per cent (5.9). Profit after tax and including restructuring costs totalled SEK 137 million (82), corresponding to earnings per share of SEK 0.81 (0.49). Operating cash flow amounted to SEK 237 million (198).

Nobia’s sales for the second quarter were impacted by a low level of market activity. The Continental Europe and Nordic markets weakened, while there was growth in the UK market from a low level.

Organic sales growth of 2 per cent was mainly attributable to a higher number of delivery days compared with the preceding year. The sales in the quarter were negatively impacted by currency effects in an amount of SEK 177 million (pos: 79). Optifit, which was divested on 1 May 2013, had external sales of SEK 49 million in the period May-June 2012.

The gross margin rose to 41.2 per cent (40.1), positively impacted by higher sales values, lower materials prices and productivity improvements.

Operating profit excluding restructuring costs improved mainly due to the strengthened gross margin and as a result of cost savings.

Currency effects of approximately negative SEK 15 million (pos:10) were charged to operating profit excluding restructuring costs, of which negative SEK 15 million (pos: 5) in translation effects and SEK 0 million (pos: 5) in transaction effects.

Restructuring costs of SEK 36 million (62) were related to the sale of Optifit.

Return on capital employed including restructuring costs amounted to negative 2.8 per cent over the past twelve-month period (Jan-Dec 2012: neg. 5.3).

Operating cash flow improved primarily as a result of higher earnings generation and lower investments compared with the preceding year.

Comments from the CEO
“For the first time in two years, Nobia had a quarter with organic growth, although a higher number of delivery days contributed to this. A negative sales trend in Continental Europe was offset by higher sales in our two largest regions – the UK and the Nordic region. The Group’s gross margin for the most recent twelve-month period is at record levels. We are experiencing particularly favourable profitability in the Nordic region, where our efforts to enhance productivity have generated results. During the second quarter, Optifit was divested and the relocation of Hygena’s production to the facility in Darlington was completed. In the UK, Magnet is transitioning according to plan to the Group cabinet standard, which will enable further economies of scale in the long term. In Continental Europe, we continue to reduce our costs to meet the reduction in sales volumes. At the same time, we are intensifying our focus across the board to generate growth through, for example, improved sales processes. We are also assessing the positibilities for expansion into new channels and market segments,” says Morten Falkenberg, President and CEO.

For further information
Please contact any of the following on: +46 (0)8 440 16 00 or +46 (0)705 95 51 00:
• Morten Falkenberg, President and CEO
• Mikael Norman, CFO
• Lena Schattauer, Head of Investor Relations