Nobia Ab · OMXSTO:NOBI
Nobia Ab — Investor Presentation (2024)
25 slides from Nobia Ab's investor presentation, 2024
Slide 1: Company presentation
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Slide 2: Important notice
Important notice NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION IN THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SOUTH AFRICA, SWITZERLAND OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL OR REQUIRE REGISTRATION OF ANY OTHER MEASURE I
Slide 3: Nobia's Executive Committee
Nobia’s Executive Committee Kristoffer Ljungfelt Henrik Skogsfors Philip Sköld George Dymond Incoming President & CEO CFO EVP Strategy & EVP Commercial Transformation Region West (UK) Ole Dalsbø Samuel Dalén Cecilia Forzelius Sara Björk EVP Commercial EVP Supply Chain EVP People, CIO Region North Co
Slide 4: Nobia is a leading European kitchen specialist
Nobia is a leading European kitchen specialist Present in the Nordics and the UK Proven and profitable business model Share of sales FY 2023 Long history of Portfolio Other Nordics Netherlands and Austria 51% producing high of strong local 15% quality kitchens brands ~90% Made-to- ~5,300 Bribus & ew
Slide 5: The current situation follows a combination of events…
The current situation follows a combination of events… Significant investments in the new factory Macroeconomic turbulence SEKm • Operating cash flow1) excluding investments in Jönköping Interest rates (%) • Yield curve spot rate – 10–year maturity – Euro area • Operating cash flow1) • Yield curve s
Slide 6: …balance sheet mainly impacted by the new factory investments
…balance sheet mainly impacted by the new factory investments Net debt excluding Jönköping capex within financial target Approximately SEK 1bn cash outflow left in 2024 x • Reported net debt/EBITDA1) Investments related to Jönköping (SEKm) • Illustrative net debt/EBITDA1) excluding investments in Jö
Slide 7: Key investment highlights
Key investment highlights 1 Long history of delivering high quality kitchens 2 Proven Nordic business model with upside potential in the UK 3 Nobia has strong market positions in large addressable markets 4 Clear strategic initiatives to drive profitable growth 5 Strengthened financial position foll
Slide 8: Long history of delivering high quality kitchens
1 Long history of delivering high quality kitchens Net sales1) (SEKbn) / Adj. EBIT margin1), % • Nordics • UK • Other • Group 14.9 13.7 13.4 Nordics Adj. EBIT margin 13.7% Group Adj. EBIT margin 8.5% 7.4% 5.0% 3.3% 1.6% 2002 2015 2016 2017 2018 2019 2020 2021 2022 2023 IPO on Nasdaq Divestments of D
Slide 9: Proven Nordic business model with upside potential in the UK
2 Proven Nordic business model with upside potential in the UK Region Nordic Region UK Customer sales split FY 2023 Net sales (SEKbn) Customer sales split FY 2023 CUSTOMERS Net sales (SEKbn)2) 14% AND SALES • B2B 56% 7.4 8.0 6.9 • B2B DEVELOPMENT • B2C • B2C 4.5 5.0 4.5 44% 86% 2021 2022 2023 2021 2
Slide 10: Nobia has strong market positions in large addressable markets
3 Nobia has strong market positions in large addressable markets Nordics + UK Well positioned in the Nordics Opportunity to grow UK presence • B2B Nordic B2C/B2B split UK B2C/B2B split • B2C 13% ~70% of Nobia’s B2B sales 34% are new construction ~22 ~57 ~19% SEKbn SEKbn 2023E 2023E 66% 87% ~79 Nordi
Slide 11: Clear strategic initiatives to drive profitable growth
4 Clear strategic initiatives to drive profitable growth 3-5% organic growth iv >10% EBIT margin2) Market stabilisation and recovery iii 7% Average adj. EBIT margin1) Transform UK Market decline ii Significant investments in Low EBIT Realise full Nordic the new Jönköping factory margin potential i M
Slide 12: Nobia has taken several strategic actions strengthening its financial position
Maximising cost efficiency 4 Nobia has taken several strategic actions strengthening its financial position and maximising cost efficiency Cost out program in January 2023 Sale of Jönköping factory building Sale of Bribus • Sale and leaseback • On 12 February 2024, Nobia announced the Reduction of f
Slide 13: New custom-built factory a key enabler for growth and profitability
Realise full Nordic potential 4 New custom-built factory a key enabler for driving growth and profitability in line with financial targets… Enabling… …through • Increasing product customisation and quality driving market share gains and unlocking new customer segments Organic sales growth • Increasi
Slide 14: …while also providing an unmatched sustainability profile
Realise full Nordic potential 4 …while also providing qualitative advantages including an unmatched sustainability profile Enabling… …through Complete kitchen capabilities by 2024 • State-of-the-art factory attracting top talent in the wood industry H1 21: Construction start Recruitment and • Collab
Slide 15: Consolidating supply network and increasing capacity
Realise full Nordic potential 4 Consolidating supply network and increasing capacity Consolidation of Nordic footprint1) Capacity for future growth Providing key advantages Max production capacity (cabinets / day on 3 shifts) Production capacity Nordic factories (cabinets / day) Resilient production
Slide 16: Increased operational efficiency and improved offering
Realise full Nordic potential 4 Increased operational efficiency and improved offering Significant Nordic EBITDA margin potential Conversion cost effect Nordic EBITDA margin potential, % Conversion cost2) (SEK / cabinet) Illustrative (30-40%) 3.5% 1) Tidaholm factory Jönköping factory New Jönköping
Slide 17: Strategic move in the UK to a focused mass premium leader
Transform UK 4 Strategic move in the UK to a focused mass premium leader UK business targeted to return to historical profitability Strategic shift for core brand Magnet UK net sales (SEKm)1) From a multi-segment … to a mass UK EBIT margin excl. IAC (%)1) top-tier player… premium leader Luxury Lockd
Slide 18: The UK transformation is underway to show progress in 2024
Transform UK 4 The UK transformation is underway to show progress in 2024 Key strategic actions already carried out KPIs indicating positive effects 1 MARKET • Exit of unprofitable business, mainly in social housing • Average order value (GBP) POSITION • Premium kitchen mix, % (share of net sales) •
Slide 19: Kitchen market expected to stabilise in 2024 and recover in 2025
Market stabilisation and recovery 4 Kitchen market expected to stabilise in 2024 and starting to recover in 2025 Nordic kitchen market1) (SEKbn) 2% CAGR CAGR • B2B 28.5 2023E–2025E 22.4 21.9 23.2 • B2C 28% (9%) (21%) 34% 29% 66% 71% 72% 7% 2022 2023E 2024E 2025E UK kitchen market2) (SEKbn) Market de
Slide 20: Structural trends to drive long-term market growth
Market stabilisation and recovery 4 Structural trends to drive long-term market growth 1 2 3 4 Structural undersupply Moving activity and Propensity to Value of of housing property transactions renovate kitchens Large undersupply of housing1) Property transactions growth 2023-25E3) Macroeconomic cli
Slide 21: Strengthened financial position allowing completion of Jönköping investment
5Strengthened financial position allowing completion of Jönköping investment and operational flexibility Fully guaranteed rights issue and re-financing Material debt reduction to provide financial flexibility Net debt excl. IFRS leasing & pension debt (SEKm) Net debt / EBITDA1) Gross proceeds ▪ Appr
Slide 22: Clear strategic initiatives to drive profitable growth
5 Clear strategic initiatives to drive profitable growth 3-5% organic growth iv >10% EBIT margin2) Market stabilisation and recovery iii 7% Average adj. EBIT margin1) Transform UK Market decline ii Significant investments in Low EBIT Realise full Nordic the new Jönköping factory margin potential i M
Slide 23: Medium term financial targets maintained
5 Medium term financial targets maintained Growth Profitability Financing Dividend 3-5% >10% <2.5x >40% Average organic EBIT margin excl. Net debt/ Adj. EBITDA LTM1) Of net profit after tax, sales growth items affecting taking the company's capital comparability structure under consideration 23 Note
Slide 24: Key investment highlights
Key investment highlights 1 Long history of delivering high quality kitchens 2 Proven Nordic business model with upside potential in the UK 3 Nobia has strong market positions in large addressable markets 4 Clear strategic initiatives to drive profitable growth 5 Strengthened financial position foll
Slide 25: Designing Kitchens for Life
FOr. a a = eof ¢ nobia , . Designing Kitchens for Life