Nobia Ab · OMXSTO:NOBI
Nobia Ab — Q3 2008 Earnings Presentation
20 slides from Nobia Ab's earnings presentation, Oct 24, 2008
Slide 1: Interim report
Interim report 24 October 2008
Slide 2: 2 2008
2 2008
Slide 3: Key figures July-September 2008
Key figures July-September 2008 Net sales were SEK 3,690 m (3,748) Organic growth was 1% Operating profit (EBIT) declined by 32% to SEK 186 m (272). Negative currency effects amounted to SEK 30 m Operating margin was 5.1% (7.3) Profit after tax was SEK 105 (189) EPS after dilution declin
Slide 4: Net sales analysis
Net sales analysis Jul-Sep Jan-Sep Change Change SEK m SEK m 2007 3,748 11,951 Organic growth 36 1% 402 3% 1) - UK region 44 3% 366 9% 1) - Nordic region -48 -4% -14 0% - Continental Europe 1) 50 5% 45 1% region Currency effects -170 -5% -451 -4% 2) Acquisitions 137 4% 293 2% Discontinued and sold 3
Slide 5: Profit development
Profit development 2008 2008 SEK m Change Change Jul-Sep Jan-Sep Operating profit before depreciation, 305 -20% 1,179 -12% SEK m (EBITDA) Operating profit, 186 -32% 832 -17% SEK m (EBIT) Pre-tax profit 146 -40% 718 -22% Negative currency effects of SEK 30 m (Jul-Sep) Takeover of HTH franchise st
Slide 6: UK region in Q3
UK region in Q3 Magnet and Gower consolidated into one business unit Continued growth in Trade channel More cautious pace of store expansion programme 3% organic growth despite weaker market Negative currency effects of SEK 22 m on operating profit 6 2008
Slide 7: UK region in Q3
UK region in Q3 2008 2007 Change Jul-Sep Jul-Sep Net sales, 1) 1,285 1,492 -14% SEK m Operating profit, 2) 87 125 -30% SEK m Operating 6.8% 8.4% margin 1) Includes SEK 63 m for C.P.Hart 2) Includes SEK 5 m for C.P.Hart 7 2008
Slide 8: UK region in local currency
UK region in local currency 2008 2007 Change Jul-Sep Jul-Sep Net sales, 108 109* -1% GBP m Operating profit, 7 9 -22% GBP m * Including C.P.Hart in 2007 8 2008
Slide 9: UK store development
UK store development Jan-Sep 2008 31/12/07 Refurbished or 13 relocated New stores, net 17 Total (wholly owned) 214 197* * Excluding C.P.Hart New Magnet mixed site in Staples, UK 9 2008
Slide 10: Nordic region in Q3
Nordic region in Q3 Consolidation to reach economies of scale – Nobia Norway and Nobia Sweden – HTH and Invita in Denmark Negotiations in progress for staff reductions in Novart Takeover of HTH franchise stores – Greater influence on customer offering – Contributed SEK 150 m to net sales New
Slide 11: Nordic region Q3
Nordic region Q3 2008 2007 Change Jul-Sep Jul-Sep Net sales, 1,293 1,192 8% SEK m Operating profit, 92 120 -23% SEK m Operating 7.1% 10.1% margin 11 2008
Slide 12: Nordic store development
Nordic store development Jan-Sep 2008 31/12/07 Refurbished or 6 relocated New stores, net 6 Total (owned & 291 285 franchise) Novart’s Kitchen World store in a new location in Turku, Finland 12 2008
Slide 13: Continental Europe in Q3
Continental Europe in Q3 Pronorm and EWE/FM consolidated into one business unit More cautious expansion of Poggenpohl and Hygena store network Work in progress to improve Hygena’s distribution efficiency Slightly positive contribution to operating profit from Culinoma Organic growth was 5%
Slide 14: Continental European region Q3
Continental European region Q3 2008 2007 Change Jul-Sep Jul-Sep Net sales, 1,129 1,073 5% SEK m Operating profit, 32 64 -50% SEK m Operating 2.8% 5.9% margin 14 2008
Slide 15: Continental European store development
Continental European store development Jan-Sep 2008 31/12/07 Refurbished or 4 relocated New stores, net 8 Total (owned and 181 173 franchise) Culinoma in Germany: 89 stores Poggenpohl’s new showroom in Atlanta, Georgia in the US 15 2008
Slide 16: Earnings per share
Earnings per share SEK 6 5,50 Nobia’s goal for profit 4,93 growth: 5 4,70 Earnings per share 4 shall increase over a 3 business cycle by an average of 12 per 2 cent annually. 1 Average increase 2001-2007 is 18% 0 2006 2007 2007/08 Oct/Sep Earnings per share after dilution 16 2008
Slide 17: Financial position
Financial position 2008 2007 SEK m Jul-Sep Jul-Sep Investments -158 -181 * Operating cash flow 142* 205 Lower operating profit Larger inventory 2008 2007 SEK m 30 Sep 31 Sep Preliminary taxes Net debt 3,042 2,261 Net debt/equity 76% 59% 17 2008
Slide 18: Actions underway and planned per region
Actions underway and planned per region UK Magnet and Gower now Nobia UK Nordic Consolidation of Nobia Sweden and Norway HTH and Invita will be Nobia Denmark Employee reductions in Novart HTH flat-pack concept Continental Europe Pronorm/EWE/FM consolidated New depot structure for Hygen
Slide 19: Actions underway and planned on Group level
Actions underway and planned on Group level Cash management focus Revision of production structure Harmonisation of assortments through purchasing clusters – Nordic cluster – UK/CE cluster New management team structure 19 2008
Slide 20: Main priorities
Main priorities Meet economic downturn Strengthen retail and B2B channels Capture growth opportunities Capital Markets Day in London 19-20 November Next report 11 February 20 2008