Capital Markets Day 2008: Braking and accelerating

The financial crisis and economic downturn are impacting demand for
kitchens. Nobia is implementing capacity adjustments to adapt the
company to a weaker market, while at the same time investing in new
concepts for developing its offering towards new customer groups.
These were the issues discussed at Nobia's Capital Markets Day in
London on Wednesday.

The European kitchen market has weakened. Customers are delaying
their renovation decisions. At the same time, activity in the
new-builds segment is declining. It is not currently possible for
anyone to predict how extensive and long-lasting the downturn will
be."Our starting point is to approach a market in decline through such
measures as capacity adjustments and the consolidation of production
units. We are also honing our offering in the various sales channels
and are continuing to develop the store network, although at a slower
pace than previously," says Preben Bager, President and CEO.

To better prepare for weaker demand, Nobia restructured its
organisation in the autumn, resulting in fewer and larger business
units. The number of business units has changed from 14 to eight.
This will enable better co-ordination in production, purchasing and
administration. Nobia has initiated programmes in all of its business
units to enhance the efficiency of the operations and reduce costs.
The company is also slowing its pace in establishing new stores. As
part of its work to better utilise economies of scale and optimise
use of production capacity, the Forssa plant in Finland will be
closed. As a result, production of Nobia's three brands in Finland
will be concentrated to the Nastola plant. The consolidation is
planned to be fully implemented during 2009. The restructuring of
production is expected to result in nonrecurring costs and new
investments totalling approximately SEK 40 million. Annual savings of
approximately SEK 17 million are expected to be generated from 2010.

The trend of kitchens becoming increasingly similar in Europe
presents opportunities for enhanced cost efficiency in the supply
chain. Product harmonisation and purchasing co-ordination between
Nobia's business units and brands is a high-priority area. An
increasingly large portion of the total purchasing volume will be
outsourced to low-cost countries, including China.

In parallel with the adjustments to a weaker market, Nobia is
focusing aggressively on new concepts for new customer groups and on
continuing the expansion of its store network, although at a slower
pace than previously. For example, HTH launched a new concept and
product programme in the Norwegian flat-pack kitchen market in the
economy segment. The new concept will not only provide customers with
the opportunity to have their kitchen delivered as a flat pack at a
lower price, but customers can also use a 3D design program on the
Internet to customise their kitchen. Another example is exporting
successful brand concepts to other countries, as started this year
with the French brand Hygena in Spain.

Nobia AB, 19 November 2008

For further information, contact:
Preben Bager, President and CEO, Gun Nilsson, CFO or Ingrid Yllmark,
Director Communications & IR,
Tel. +46 8 440 16 00 or +46 708 65 59 00

Nobia is a Group of about twenty strong kitchen brands. Sales of
complete kitchen solutions are conducted mainly in Europe through
various channels, such as nearly 700 specialised kitchen studios,
other retailers and B2B customers, as well as directly to the
construction sector. Annual net sales total approximately SEK 16
billion and the Group employs about 9,000 people. The Nobia share is
listed on the OMX Nordic Exchange in Stockholm, short name NOBI.