Nobia Ab · OMXSTO:NOBI
Nobia Ab — Q4 2008 Earnings Presentation
24 slides from Nobia Ab's earnings presentation, Feb 11, 2009
Slide 1: Year-end report 2008
Year-end report 2008 11 February 2009
Slide 2: Accelerated market decline during the quarter
Accelerated market decline during the quarter Q4 in brief Net sales were SEK 3,989 m (4,183) Organic growth was negative 10% Operating profit was SEK 119 m (349) Operating margin was 3.0% (8.3) Cash flow was SEK 38 m (96) 2 11 February 2008
Slide 3: Performance by region
Performance by region 3 11 February 2008
Slide 4: UK kitchen market in Q4
UK kitchen market in Q4 Continued decline in the kitchen market towards the end of the year A number of competitors filed for bankruptcy 4 11 February 2008
Slide 5: UK region in Q4, local currency
UK region in Q4, local currency 2008 2007 Change Oct-Dec Oct-Dec Net sales, 102.0 117.2* -13% GBP m Operating profit, -1.7 9.9** neg. GBP m Operating -1.6% 8.4% margin *C.P: Hart included with GBP 4.2 m **C.P. Hart included with GBP 0.3 m Decreased sales Currency effects on operating profit SEK
Slide 6: UK region in Q4
UK region in Q4 2008 2007 Change Oct-Dec Oct-Dec Net sales, 1,250 1,542* -19% SEK m Operating profit, -20 130** neg. SEK m Operating -1.6% 8.4% margin *C.P: Hart included with SEK 57 m **C.P. Hart included with SEK 4 m 6 11 February 2008
Slide 7: Nordic kitchen market in Q4
Nordic kitchen market in Q4 Accelerated slowdown in demand in all Nordic markets – both new-build and renovation 7 11 February 2008
Slide 8: Nordic region Q4
Nordic region Q4 2008 2007 Change Oct-Dec Oct-Dec Net sales, 1,476 1,436 3% SEK m Operating profit, 38 157 -76% SEK m Operating 2.6% 10.9% margin Decline in sales like for like of 15%, affects profit SEK -80 m Net currency effects SEK -10 m (weaker SEK and NOK) Structural production initiative
Slide 9: Nordic region in Q4
Nordic region in Q4 Production in Finland will be concentrated to one plant by Q3 2009 HTH and Invita consolidated into one business unit in Denmark Danish sales increased by SEK 190 m through takeover of HTH franchise stores (actual sales decreased) HTH introduced new flat-pack concept in N
Slide 10: Continental European kitchen market in Q4
Continental European kitchen market in Q4 Demand in all main markets weakened during the period 10 11 February 2008
Slide 11: Continental Europe region Q4
Continental Europe region Q4 2008 2007 Change Oct-Dec Oct-Dec Net sales, 1,290 1,229 5% SEK m Operating profit, 117 85 38% SEK m Operating 9.0% 6.9% margin Culinoma contributed SEK 22 m to operating profit (-2) Pronorm/EWE/FM and Optifit improved performance 11 11 February 2008
Slide 12: Decline in demand affected sales and profit
Decline in demand affected sales and profit Full year 2008 Net sales declined slightly to SEK 15,991 m (16,134) Organic growth was flat Operating profit (EBIT) was down by 30% to SEK 951 m (1,353) Net profit amounted to SEK 555 m (958) EPS after dilution was SEK 3.29 (5.50) Operating mar
Slide 13: Profit development
Profit development Lower volumes 2008 2008 SEK m Change Change Oct-Dec Jan-Dec Currency effects Operating profit Store investments before depreciation, 251 -44% 1,430 -20% SEK m (EBITDA) Costs for structural Operating profit, changes 119 -66% 951 -30% SEK m (EBIT) Pre-tax profit 70 -78% 788
Slide 14: Earnings per share fell
Earnings per share fell SEK 6 5.50 4.93 * + 34% 5 Nobia’s goal for profit growth: 4 3.67 3.29 Earnings per share shall increase over a 3 business cycle by an average of 12%. 2 Average increase 2001-2008 is 7% 1 0 2005 2006 2007 2008 Earnings per share after dilution and split 3:1 *) Earnings per sha
Slide 15: Financial position
Financial position 2008 2007 SEK m Jan-Dec Jan-Dec Investments 733 678 Operating cash flow 42 949 2008 2007 SEK m 31 Dec 31 Dec Net debt 3,181 2,224 Net debt/equity 76% 54% 15 11 February 2008
Slide 16: Decline in cash flow
Decline in cash flow Weaker operating profit Increased working capital tied-up Acquisition of HTH franchise stores Higher store investments Higher taxes paid 16 11 February 2008
Slide 17: Proposed dividend
Proposed dividend SEK 1.25 per share (2.50) The total dividend amounts to SEK 209 m based on the number of shares at year-end 2008 Corresponds to 38% of net profit for the year attributable to the Parent Company’s shareholders 17 11 February 2008
Slide 18: 39 new stores during 2008
39 new stores during 2008 Year-end Net Year-end Brand by region New Closed 2007 change 2008 Marbodal 7 0 0 0 7 Myresjökök 4 0 0 0 4 HTH 121 2 0 2 123 Invita 50 1 0 1 51 Norema 21 0 -1 -1 20 Sigdal 8 1 0 1 9 Novart brands 74 4 -2 2 76 Nordic 285 55 -50 5 290 Poggenpohl 31 5 -2 3 34 Hygena 142 13 0 13
Slide 19: 2008 in brief
2008 in brief Accelerated market decline during 2008 Adaptation of production capacity and coordination of supply Manufacturing in Finland concentrated to one plant Rationalisation of Hygena’s logistics structure begun Established purchasing organisation in Shanghai Strengthened customer offer
Slide 20: Events after year end
Events after year end Downsizing at Norema plant in Norway begun Shift of Invita’s production and administration in Denmark to the HTH plant announced Fewer competitors in the UK affecting January sales 20 11 February 2008
Slide 21: Main priorities
Main priorities Adapt quickly to the economic downturn – Adjust production – Capture synergies Focus on cash management Strengthen customer offering in both retail and B2B channels Annual General Meeting 2 April Next report 24 April 21 11 February 2008
Slide 22: Streamline Nobia - our improvement potential
Preben Bager, CEO: Streamline Nobia - our improvement potential Since Nobia is a group of acquired companies, it has a wide product assortment and operates in many sites. Nobia has great potential to gain economies of scale through harmonization of its product assortment, consolidation of factories
Slide 23: Net sales analysis – organic growth
Net sales analysis – organic growth Oct-Dec Jan-Dec Change Change SEK m SEK m 2007 4,183 16,134 Organic growth -393 -10% 8 0% - UK region* -129 -9% 237 4% - Nordic region* -212 -15% -226 -4% - Continental European -49 -4% -4 0% region* Currency effects 58 1% -392 -2% Acquisitions 193 5% 486 3% Disco
Slide 24: Performance by region 2008
Performance by region 2008 Net sales Jan-Dec Operating profit Jan-Dec Operating margin Jan-Dec SEK m 2008 Change 2008 Change 2008 2007 UK 5,383 -10% 333 -36% 6.2% 8.6% Nordic 5,955 7% 498 -27% 8.4% 12.3% Continental 4,750 2% 220 -19% 4.6% 5.9% Europe Other and Group -97 -100 adjustments Group 15,991