Interim report January-September 2013

Net sales for the third quarter amounted to SEK 2,798 million (2,863). Organic
growth totalled 2 per cent (neg: 5). No restructuring costs (26) impacted
operating profit for the quarter. Operating profit excluding restructuring costs
amounted to SEK 180 million (142), corresponding to an operating margin of 6.4
per cent (5.0). Profit after tax and including restructuring costs totalled SEK
90 million (62), corresponding to earnings per share of SEK 0.55 (0.37).
Operating cash flow amounted to SEK 207 million (123).
In total, activity on Nobia’s markets remained low during the third quarter. The
UK market continued to grow, but from a low level. The Nordic market is
estimated to have remained unchanged, while the Continental Europe market
weakened.
Organic sales grew by 2 per cent (neg: 5). Currency effects impacted net sales
negatively for the quarter in an amount of SEK 34 million (neg: 105). Optifit,
which was divested during the second quarter 2013, reported external sales of
SEK 74 million in the third quarter 2012.
The gross margin improved to 40.7 per cent (40.1), positively impacted by higher
sales values, which more than compensated for negative currency effects.
Operating profit increased primarily due to the strengthened gross margin but
also as a result of cost savings.
Currency effects of approximately negative SEK 25 million (pos:10) affected
operating profit excluding restructuring costs, of which negative SEK 5 million
(neg: 5) comprised translation effects and negative SEK 20 million (pos: 15)
transaction effects.
Return on capital employed including restructuring costs amounted to negative
1.7 per cent over the past twelve-month period (Jan-Dec 2012: neg. 5.3).
Operating cash flow improved primarily as a result of higher earnings generation
and lower investments compared with the preceding year.
Comments from the CEO
“Nobia’s organic growth remained positive throughout the third quarter. Growth
in the UK offset the negative trend in Continental Europe. In the UK, our
volumes increased in both B2B and through Magnet stores. Once again, the Nordic
region showed profitability that comfortably exceeded the target of a 10-per
-cent operating margin for the entire Group. The sales decline in Continental
Europe is mainly attributable to the divestment of Optifit and major project
deliveries in Poggenpohl during the year-on-year period. However, the trend for
Hygena remains negative and we are now implementing a number of changes, yet we
realise that these measures will take time to generate results. Our focus on
both efficiency and growth stands firm. In parallel with proactive initiatives
in all units, we are assessing potential acquisitions in order to create
profitable growth,” says Morten Falkenberg, President and CEO.

For further information
Please contact any of the following on: +46 (0)8 440 16 00 or +46 (0)705 95 51
00:
• Morten Falkenberg, President and CEO
• Mikael Norman, CFO
• Lena Schattauer, Head of Investor Relations