Nobia Ab · OMXSTO:NOBI
Nobia Ab — Investor Day (September 2004)
26 slides from Nobia Ab's investor day presentation, Sep 2, 2004
Slide 1: Nobia's organic growth
Nobia’s organic growth Presentation by Jan Johansson, CFO 2 September 2004 1 September 2004
Slide 2: Contents
Contents • Review H1 & market development • Growth 1996-2004 • Financial objectives 2 September 2004
Slide 3: Highlights January – June 2004
Review H1 Highlights January – June 2004 • Net sales amounted to SEK 5,780 m (4,752) • Organic growth 10% (excluding Goldreif, acquired units and currency) • EBITA amounted to SEK 505 m (367) • EBITA-margin 8.7% (7.7) • Cash flow was SEK 235 m (17) • Profit after financial items SEK 391 m (303) • Pr
Slide 4: Net sales – UK
Review H1 Net sales – UK Apr–Jun Apr–Jun Jan–Jun Jan–Jun SEK, million 2004 2003 2004 2003 Net sales 1,336 929 2,704 1,937 Organic growth, % 11 8 • Organic growth 8% in H1 and 11% in Q2 – Kitchen and bedroom interiors up 12%, whereof rigid kitchens 8% – Bathroom and joinery down 4% • Growth supported
Slide 5: Net sales – Nordic
Review H1 Net sales – Nordic Apr–Jun Apr–Jun Jan–Jun Jan–Jun SEK, million 2004 2003 2004 2003 Net sales 1,149 1,022 2,110 1,901 Organic growth, % 14 14 • Organic growth 14% – Growth in all Nordic countries in both new build and renovation segments – Growth driven by increased volumes and higher aver
Slide 6: Net sales – Continental Europe
Review H1 Net sales – Continental Europe Apr–Jun Apr–Jun Jan–Jun Jan–Jun SEK, million 2004 2003 2004 2003 Net sales 511 485 1,022 964 Organic growth, % 8 10 • Organic growth 10% in H1 and 8% in Q2 – Increased export to US, UK and South Europe – Increased export of DIY-products to UK via Magnet – Sal
Slide 7: Net sales – Group
Review H1 Net sales – Group Apr–Jun Apr–Jun Jan–Jun Jan–Jun SEK, million 2004 2003 2004 2003 Net sales 2,967 2,406 5,780 4,752 Organic growth*, % 12 10 * Organic growth excluding Goldreif, acquired units and currency • Sales growth 22% to SEK 5,780 m • Organic growth 10% in H1 and 12% in Q2 • High o
Slide 8: Summary H1 2004
Review H1 Summary H1 2004 • EBITA increased 38% to SEK 505 m (367) – Increased sales – Successful action programmes – Consolidation of acquired units • Improved operating cash flow to SEK 235 m (17) – Higher profit – Lower capital tied up in inventory 8 September 2004
Slide 9: Growth 1996-2004
Growth 1996-2004 9 September 2004
Slide 10: Financial performance 1996 – 2004
Growth 1996-2004 Financial performance 1996 – 2004 10,301 9,594 9,273 8,283 7.1% 7.4% 8.2% 6.7% 3,977 4,049 4,102 3,412 3,316 6.6% 3.4% 2.4% 2.7% 1996 1997 1998 1999 2000 2001 2002 2003 2004 H1 ltm* -4.1% *June 2004 ltm 10 September 2004
Slide 11: Sales development Nobia, 1996-2004
Growth 1996-2004 Sales development Nobia, 1996-2004 SEK, billion 1.4 10.3 8.3 -0.5 10 -0.5 5 1.6 0 Sales 1996* Acquisitions Closures and Currency Organic LTM sales divestments change June 2004 * Excluding doors, windows and wholesale operations 11 September 2004
Slide 12: Acquisitions
Growth 1996-2004 Acquisitions Nobia’s acquisitions from 1996 to June 2004 Year Acquisition Sales per year SEK billion 1998 Novart 0.5 2000 Poggenpohl Group 2.5 2000 Norema/Invita 0.7 2001 Magnet 4.0 2003 Gower 1.0 12 September 2004
Slide 13: Closures and divestments
Growth 1996-2004 Closures and divestments Nobia’s closures and divestments in the kitchen business Year Closures/ Sales per year divestments SEK billion 2001 Star Beka (c) 0.2 2002 Penrith & Flint (d) 0.2 2003 Goldreif (c) 0.1 13 September 2004
Slide 14: Organic growth
Growth 1996-2004 Organic growth 6% 5,6% 5,4% 4,8% 4,2% 4% 3,6% 2,6% 2,4% 2,0% 2% 0% 1997 1998 1999 2000 2001 2002 2003 LTM June 2004 • Nobia’s kitchen business shows positive organic growth each year since 1996. The growth rate has varied between 2-6% 14 September 2004
Slide 15: Market growth – Examples
Growth 1996-2004 Market growth – Examples Germany UK 10% 10% 0% 0% 1998 1999 2000 2001 2002 2003 -10% -10% 1998 1999 2000 2001 2002 2003 Source: CSIL Source: JKMR, Nobia • Annual %-changes in kitchen demand in Germany and UK 15 September 2004
Slide 16: Increasing AOV in all segments – Example
Growth 1996-2004 Increasing AOV in all segments – Example Index 300 200 Retail / Wholes ale Contract Prefabr. hous es Total KPI 100 1988 1993 1999 2003 • Price trend per cabinet in different segments for one Business Unit. All segments show increasing average prices above KPI 16 September 2004
Slide 17: Drivers behind increasing AOV
Growth 1996-2004 Drivers behind increasing AOV • Stronger consumer influence in new build segment • Nobia integration towards end-consumer • Consumer preferences are changing 17 September 2004
Slide 18: Consumer preferences are changing
Growth 1996-2004 Consumer preferences are changing Share of respondents Consumer confidence indicator 45,0 50,0 •The interest in home 40,0 improvement has 40,0 increased over the last 30,0 ten years 35,0 20,0 10,0 30,0 0,0 25,0 -10,0 20,0 -20,0 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03
Slide 19: Sales by geographical area
Growth 1996-2004 Sales by geographical area Sales distribution by geographical area in 2000 and 2004 Other Other UK countries countries Continental Europe Nordic UK Nordic Continental Europe 2000 2004e • In 2000 approx. 75% of Group sales were in the Nordic Region • Today UK is the biggest market wi
Slide 20: Sales by product
Growth 1996-2004 Sales by product Sales distribution per product category in 2000 and 2004 A ppliances Installation Installation Joinery Flat pack f urniture A ppliances Rigid Bathroom Flat pack Rigid kitchen f urniture Rigid kitchen Rigid Bathroom 2000 2004e • The flat-pack share of Nobia’s sales i
Slide 21: Financial objectives
Financial objectives 21 September 2004
Slide 22: Financial objectives
Financial objectives Financial objectives • Growth • EPS 12% p.a. in average • Dividend 30% of net profit in average after considering actual gearing • Margin • EBITA-margin Exceed 10% over a business cycle • Financial strenght • Net debt/Equity Not above 100%. Temporarily higher gearing could be ac
Slide 23: Growth objectives
Financial objectives Growth objectives EPS after dilution (excluding goodwill) 2001 2002 2003 2004 ltm* 2001-2004 Objective EPS 6.18 8.69 6.88 9.25 Annual change, % 41 -21 34 17 12 • Conclusion: EPS growth is ahead of objective * 2004 ltm is adjusted for effect from Goldreif closure 23 September 200
Slide 24: Margin objective
Financial objectives Margin objective EBITA margin by business region 2001 2002 2003 2004 ltm* Objective UK 8.7 9.7 7.7 8 Nordic 10.7 12.1 11.8 12.2 Continental European 2.8 3.3 4.3 6.1 Group 7.1 8.2 7.8 8.3 10 • Conclusion: Positive margin development on group level except for 2003 * Adjusted for c
Slide 25: Financial strength
Financial objectives Financial strenght 2001 2002 2003 2004 H1 Restriction Debt/equity ratio, % 117 42 66 73 100 25 September 2004
Slide 26: Dividend
Financial objectives Dividend 2002 2003 Objective Dividend as % of net profit 32 38 30 26 September 2004