Nobia Ab · OMXSTO:NOBI
Nobia Ab — H1 2002 Earnings Presentation
41 slides from Nobia Ab's earnings presentation, August 2002
Slide 1: January to June 2002
January to June 2002 1
Slide 2: Content
Content Summary Strategic Initiatives Financial Review – Nordic Operations – Continental European Operations – UK Operations – Group 2
Slide 3: Summary
Summary 3
Slide 4: Summary
Summary Net sales up 40 per cent to SEK 4,951 million (3,539). Operating margin increased to 7.3 per cent (6.3). Income after financial items up 63 per cent to SEK 288 million (177). Earnings per share after full dilution up 48 per cent to SEK 3.71 (2.50). Continued profit improvement in N
Slide 5: Track-record of improving financial performance
Track-record of improving financial performance 5
Slide 6: Scalable business model
Scalable business model Market Business units Group synergies Bench- Production and Channel/ Purchasing marking/ IT product brand and best development strategy logistics practice 6
Slide 7: Strategic Initiatives
Strategic Initiatives 7
Slide 8: Group wide cost reductions
Group wide cost reductions Continued direct material/direct labour rationalisations – Direct material and direct labour – Internal component supply in centres of excellence – Reduction of article numbers and number of suppliers 8
Slide 9: Improved retail network Jan-June 2002
Improved retail network Jan-June 2002 32 new stores opened, mainly HTH and Poggenpohl 6 stores closed 89 renovated and/or changed location, mainly Poggenpohl and Novart 82 Homebase outlets opened 9
Slide 10: The Nordic operation
The Nordic operation 10
Slide 11: Trends for the Nordic kitchen interiors market
Nordic Trends for the Nordic kitchen interiors market Market up in Sweden, Norway and Denmark, Decline in Finland, mainly within the new build segment Growth driven by new build (Sweden and Norway) and renovation (Denmark and Finland) 11
Slide 12: Nordic: Net sales and operating income
Nordic Net sales and operating income Jan–June Jan–June July–June SEK, million 2002 2001 Change 2001/02 Net sales 1 843 1 692 9% 3 462 Net sales (Comp units curr adj.) 6% Jan–June Jan-June July-June 2002 2001 Change 2001/02 Operating income 231 173 34% 413 Operating margin 12.5% 10.2% 11.9% Apr–June
Slide 13: Nordic: Comments to net sales and operating income
Nordic Comments to net sales and operating income Sales increased in Sweden, Norway, Denmark Decline in Finland, though less than market decline Growth in both renovation and new build segments New build segments strong in Sweden and Norway Profit improvements driven by: – volume increases
Slide 14: The Continental European operation
The Continental European operation 14
Slide 15: Trends for the Continental European kitchen interiors market
Trends for the Continental Europe Continental European kitchen interiors market The German market (Jan-May) is estimated to have declined by 11 percent after a corresponding decline in 2001 of 8 percent Decline in second quarter less than in first quarter 2002 The kitchen interiors market in t
Slide 16: Continental Europe: Net sales and operating income
Continental Net sales and operating income Europe Jan–June Jan–June July-June SEK, million 2002 2001 Change 2001/02 Net sales 1 054 1 268 -17% 2 245 Net sales (Comp units curr adj.) -13% Excl. net effects from Star Beka closing Jan–June Jan-June July-June 2002 2001 Change 2001/02 Operating income 16
Slide 17: Continental Europe: Comments to net sales and operating income
Continental Comments to net sales and operating income Europe Profit deterioration caused by market decline – Mainly Germany and the Netherlands – Also declining sales to export markets like USA and the UK partly compensated through increased sales to the Far East and China Continued activities
Slide 18: The UK operation
The UK operation 18
Slide 19: The UK Kitchen market
UK The UK Kitchen market The UK market is estimated to have increased moderately in 2002 19
Slide 20: UK: Net sales and operating income
UK Net sales and operating income Jan–June Jan–June July-June SEK, million 2002 2001 Change 2001/02 Net sales 2 071 587 253% 4 011 Net sales (Comp units curr adj.) 2% Jan–June Jan-June July-June 2002 2001 2001/02 Operating income 192 40 371 Operating margin 9.3% 6.8% 9.2% Apr–June 2002 Operating inc
Slide 21: UK: Comments to net sales and operating income
UK Comments to net sales and operating income Overall sales increased by 2 percent (pro forma) Sales of kitchen and bedrooms increased by 6 percent, joinery products increased by 2 percent, while sales of bathroom products declined by 16 percent 21
Slide 22: Financial review Group
Financial review Group 22
Slide 23: Net sales - Group
Net sales - Group Jan–June Jan–June July-June SEK, SEK, million million 2002 2001 Change 2001/02 Net sales 4 951 3 539 40% 9 695 Net sales Comparable Units curr.adj.* -2% Excl. Net effects from Star Beka closing Overall growth from the Magnet acquisition Organic growth in the Nordic operations a
Slide 24: Operating income - Group
Operating income - Group Jan–June Jan–June July-June SEK, million 2002 2001 Change 2001/02 Operating income 363 222 64% 678 Operating margin 7,3% 6,3% 7.0% Apr–June Apr-June 2002 2001 Change Operating income 206 143 44% Operating margin 8,1% 6.8% 24
Slide 25: Main reasons for improved operating income H1(02)
Main reasons for improved operating income H1(02) Gross margin increase by 2.6 % points (excl Magnet effect) – Reduced material costs, continued improved average order values S&A increase in % of sales (excl Magnet-effect) by 1.3%-points – Caused by volume decline in Continental Europe 25
Slide 26: Net financial items
Net financial items Jan–June Jan–June SEK, million 2002 2001 Change Net financial items -75 -45 -30 Increase in H1(02) is the effect from the acquisition of Magnet in May 2001 In Q2(02) a prepayment fee of SEK 6 million was paid due to early payment of Vendor note to Enodis (seller of Magnet)
Slide 27: Taxes
Taxes Tax Rates Jan–June Jan–June 2002 2002 In percent of income after financial items 34.7% Less goodwill amortisations 31.2% Nobia has unutilised tax-losses in the UK, Germany and Sweden of SEK 200 million at December 31, 2001 During 2002 no income taxes is expected to be paid in these countri
Slide 28: Earnings
Earnings Jan-June Jan-June Jan-Dec July-June 2002 2001 2001 2001/02 EPS after full dilution, SEK 3.71 2.5 5.15 6.35 Return on capital employed, per cent 15.5% 16.8% Return on shareholders´ equity, per cent 16.2% 16.6% Increased EPS from Nordic operations and the Magnet acquisition 28
Slide 29: Cash flow
Cash flow Jan–June Jan–June Jan-Dec SEK, million 2002 2001 2001 Current activities Operating income 363 222 537 Depreciation 163 115 284 Adjustment for items not included in cash flow -40 -48 -214 Interest, dividend and tax -112 -65 -193 Change in working capital -293 -50 137 Cash flow from current
Slide 30: Capital employed and working capital
Capital employed and working capital June Dec SEK, million 2002 2001 Capital employed 4 082 4 237 Turnover LTM 2,4 2,3 Working capital 417 156 In percent of LTM 4.3% 1.6% Working capital contained approximately SEK 100 million of accounts receivables which are of temporary character 30
Slide 31: Divestment of the main part of the joinery operations in Magnet
Divestment of the main part of the joinery operations in Magnet In July, Magnet sold its joinery manufacturing facility in Penrith and its PVCu operation in Flint The combined debt-free consideration is approximately SEK 120 million (GBP 9 million). No capital gain is expected to occur. The tr
Slide 32: Restructuring provisions
Restructuring provisions Dec Dec Q1 Q2 SEK, SEK, million million 2000 2001 2002 2002 Poggenpohl/Norema 252 91 80 75 Magnet 154 142 125 Total 252 245 222 200 H1 2002 Utilisation 31 Currency effects 14 Total 45 32
Slide 33: Financial position
Financial position Net debt SEK, million Fusk Year-end 2001 2 078 New issue -520 Currency effect -100 Operations 11 1 469 June 2002 1 469 Available credits and non-utilised credit overdraft facilities by end of June SEK 715 million Available cash amounted to SEK 240 million 33
Slide 34: Balance Sheet Ratios
Balance Sheet Ratios June Dec 2002 2001 Equity/Assets ratio 38.3% 27.8% Net debt/Equity ratio 62% 117% Ratios strengthened due to proceeds from the IPO and net income from operations 34
Slide 35: Employees - Group
Employees - Group The total number employees increased since year-end 2001 by approximately 109. Consisting of: – Sales personnel within stores – Workers for insourced manufacturing (CoE) – Temporary workers 35
Slide 36: Thank you for listening
Thank you for listening 36
Slide 37: Additional slides
Additional slides 37
Slide 38: Europe's leading kitchen interiors company
Europe’s leading kitchen interiors company Europe’s largest kitchen interiors company Annual sales of approximately SEK 10 billion Decentralised organisation in three regions – Nordic – Continental Europe – United Kingdom Strong brand portfolio with focus on upper- middle segment 38
Slide 39: Becoming a focused kitchen interiors company
Becoming a focused kitchen interiors company Acquisition of Acquisition of Nobia formed by Acquisition of Acquisition of the Poggenpohl Norema (N) and Industri Kapital Novart (SF) Magnet (UK) group (D, S) Invita (DK) 1996 1997 1998 1999 2000 2001 2002 Strategic decision Divestment of Divestment Dive
Slide 40: Major ongoing investments
Major ongoing investments New stores and concessions New IT systems in Magnet and Pronorm Machinery and equipment Consolidation of new headquarters for Magnet and new building for Pronorm 40
Slide 41: Sales by country
Sales by country Other The Netherlands 6% 5% Finland 7% United Kingdom Sweden 42% 8% Germany 10% Denmark 10% Norway 12% 41