Nobia AB (publ)

Thank you all for joining this quarterly result webcast. Before we dive into the quarterly numbers, and please operator, if you can take slide number two here. Before we dive into the quarterly numbers, let me start by saying that we are very pleased with the strategic steps that we have been announcing on January 14th. We are now a truly strong Nordic kitchen powerhouse. With the divestment of our UK operations, we can fully focus on our market-leading brands such as HTH, Marbodal, Sigdal, Invita, etc. These are brands with exceptionally strong market positions and structurally high margins. At the same time, we are strengthening our balance sheet through a new share issue and by renegotiating our existing credit facilities on significantly improved terms. We have also initiated a reorganization of the business to adapt to the future without the UK operations but also to give our brands the ability to act more swiftly in the marketplace and unlock opportunities for cost saving going forward. The cost for this program was a product item affecting comparability in Q4 and is currently being implemented. As of the result for Q4 then, we are very encouraged to see volume growth returning to our sales after substantial volume decline that has lasted for 12 consecutive quarters. The positive volume growth contributed to 3% organic growth in the quarter. Volumes are still at historically low levels, but the positive trend is creating stronger momentum in the organization, and we are seeing much higher activity across the product market in general. Judging by these indicators, it is likely that we will see growth starting to pick up more materially in the second half of the year. But we will need to come back on that one in the next quarter. Our growth margin improves slightly year over year, driven by higher average order values and stronger mix. Supply chain productivity was somewhat softer in the quarter, mainly as a result of higher transport costs, something that will also be mitigated and addressed with our consolidated supply chain. FT&A cost was brought in line with last year, as we're now facing tougher comparables. However, and having said that, as we embark on the new organizational structure, we expect a further cost reduction materializing in the second half of 26. Altogether, this meant that EBIT improved slightly compared to last year, and despite currency headwind of about 10 million Swedish kronor. Cash flow was weaker in the quarter compared to last year, mainly due to timing with exceptionally strong cash flow in Q3, but also because of payments related to several major machine investments that were concluded in Q4. However, on a full year basis, as we will see a bit later, the picture is strong. Our operational cash flow improved by 250 million in 2025, and we then will complete the share rights issue to fix our balance sheet we will also have the advantage of lower interest rates cost and significantly reduce investment needs as we head into 2026. If we can take the next slide, please. And I will just briefly now walk you through the key benefits of these major initiatives that we have. And for you that would like more of a deep dive, please see our webcast on January 14th, where we provided more details than I will cover today. And you will find the webcast available on our homepage, nubia.com. So, first of all, the divestment of the UK operation has been signed with Altieri Partners, and we're expected to close this transaction by the first half of 2026. It will be a big reduction of our deficit for leasing costs, primarily related to the store network of 750 million, and the transaction may result in a consideration. To get the leveraged financial profile, we are issuing a share rights issue amounting to 1 billion, which is fully guaranteed by our main shareholders. And we expect to complete this during Q1 2026. And Robert will come back on that a little bit later today as well. As I said, we will have improved financial terms with our newly negotiated refinancing, which will be 2.5 billion revolving credit facilities with our current lenders that have been partnering with us for a very long time now. And this will also give us normalized market-based covenant structures. And finally, the launch of cost reduction initiative, we will also address that a little bit later today. So, please, let's go to the next slide, which is slide number four, and it's a wrap-up of 2025. To say the least, 2025 was another eventful year for Nobia, in which we made several important strategic decisions, while also maintaining a strong focus on driving modern expansion. And although we are not satisfied with 5% margin, which we have in this new constellation, We do believe that we have built solid momentum as we head into 2026. In 2025, our volumes continued to decline, mainly due to historically low residential construction activity across the Nordics. To counter this, we delivered growth in our B2C business and improved average order values, which helped us sustain gross margins despite the volume pressure. We also took important steps towards a consolidated supply chain and managed to right-size our production units to the lower volumes, with the result of the broadly flat gross margin compared to last year. We have also significantly reduced SG&A, offsetting inflationary headwinds through targeted cost of activities, staff reductions, and strict discipline in overall spending. And as a result of these cost improvements, we now operate with considerably slimmer and more agile organization, providing a strong foundation for the future. Adjusted EBIT came in 299, which is an improvement of roughly 140 million compared to last year. And cash flow from our operating activities for the year totaled 490 milliseconds, which is also stronger than last year on the back of better earnings and favorable working capital development. And as we turn to the next page, this is a performer and the group cost, which will remain in the business. And historically, you can see that we have operated this business entity, which is now going forward at margins north of 10%. And we are fully committed to return to those levels. And if you turn your head to 22 to 25, This is a period where we lost more than 40 percent of our volume and two and a half billion Swedish crowns top line. So again, after 12 consecutive quarters of negative volume development, it's encouraging to finally see growth in the fourth quarter. And hopefully this marks the beginning of a gradual recovery. Regardless of this and how quickly the recovery unfolds. We remain committed, as I said, even at these volume levels, to drive margin expansion in line with our financial targets. And we also have proven that we can deliver margin improvements in this environment just as we have, and you can see, over the last two years. And also now with the new opportunities that arise from focusing entirely on Nordic kitchen business, we believe we have a solid platform to do so. And then if we take next page, please, I would just lead you through the strategy we have with unleashing brand potential through a dedicated Nordic kitchen business. If you can please take slide number seven. It's a somewhat busy slide, but it illustrates how we are positioned within the kitchen market. And as you can see, our sweet spot and core is the mass premium segment, where we hold a significant share thanks to our well-established brands. Our success in this segment is driven by four key factors. A strong and distinctive brand proposition, a proven partnership model with franchises and builder merchants, built and refined over generations, with what I would say is the best capitalized store network in the Nordic. We have also, with our recent investment, put ourselves in a position where we have a highly efficient manufacturing operation with scale and harmonized product platform. And our people and our partners have a very long and impressive know-how in kitchen design and consolidation of kitchens at high speed, which is critical in this space. Together, I strongly believe these elements give us an exceptionally strong foundation. On top of this, we're also expanding into adjacent kitchen segments and dipping our toes a little bit. For example, we have developed partnerships with electronic retailers, e-commerce platforms, and other trade channels where we offer a simpler, yet functional product range. And further into that as we go ahead. Slide number eight, please. This is how we define our strategy, and we will also Later on in the year, I'll give you more information regarding these different pillars. But we split it in three strategic priorities and two enablers. The strategic priorities are extracting the HTA full potential, capitalizing on our country-leading brands with strong customer intimacy in B2B, and realizing the potential of a consolidated supply network. We will have the strategic enablers, which is to drive efficiency through complexity reduction, which we are addressing, and a recovering Nordic kitchen market. If we take the next slide, slide number nine, just a little more voiceover of our transformation in supply chain, because this is one of the most important pillars we have going forward to fully transform our supply chain. And we will move from a fragmented setup, which you have to the left, where we had the brands having a specific factory with a specific product branch, and in some cases even more factories in the same countries, to a much more harmonized situation where we have a supply chain that supports all the different brands. And this transformation will bring a wide range of benefits. which you will see on the right-hand side here. It will lower our unit cost, where we have the ambition of lowering conversion costs by 30%. We can do very efficient mass customization at high speed with flexible automation. The delivery precision will be second to none. Automated tracking of on-time in full, which is so important in our B2B business. Sustainability leadership, a thing for the future and where we are already excelling at and we will just become even better. And then we will continue to evolve in our product performance and designs. If we move to slide 10, I would just give an update of where we are in this supply chain transformation. So firstly, we now have a harmonized and efficient product range that stretches across all our brands. Where we once had 50 shades of white, we now have one white, the Novia white. And when we identify strong design elements that resonate well with the market, we can scale them across multiple brands and channels in a highly efficient way. Secondly, during the fourth quarter, we consolidated our finished manufacturing into our Danish site in Erlgud, significant benefits, both in terms of efficiency and from a product range perspective. Thirdly, and maybe most importantly, we inaugurated our state-of-the-art manufacturing facility in Jönköping in Q4, with over 2,000 customers visiting us over two days. Novapart now serves as the main producer and the hub for the Nordic network of components and flat-back products. Last year, we also began shipping Morbidol products from the site, and those deliveries have been ramping up steadily since the inauguration. In line with our long-term plan for this and budget, we still have additional investment to make in the factory of approximately 200 million Swedish crowns to continue increasing capacity and improving process flows. All in all, we have taken huge steps forward in our supply chain transformation, yet more work remains to be done. Our priority now is to continue to push forward and gradually introduce more volume and over time also more brands into both Nobia Park and Ölgud. And throughout this process, we will ensure that all new flows are continuously optimized across the network. In the fourth quarter, we incurred 30 million Swedish crowns transition related costs, referred to as double line costs in our books. And for 2026, we expect the transitional cost for these supply chain activities to be somewhat lower than the levels we have seen in 2025, with the phasing weighted slightly more toward the beginning of the year. And with that, I hand over to our CFO, Robert Belkic, to update everybody on the cost reduction initiatives that we have ongoing.

Robert Belkic Yeah, thank you, Kristoffer. If we can move to slide 11. Giving you some more details then on the cost reduction initiative that we announced on the 14th of January. So what we said was we are posting items affecting comparability of 122 million SEK recognized then in Q4. And the bulk of these costs relates to the cost reduction initiative designed to Further decentralize the decision-making within Novia, clarify the roles and responsibilities after the divestment of UK operations, increase the agility and the speed to capture growth opportunities, reduce the complexity and the matrix organizations to minimize overhead costs. And what we are expecting with this initiative is that we'll have a run rate cost savings of approximately 80 million SEK. starting from Q3 2026. Another piece of the ESCs of 122 million is then the, as Christopher alluded to, the double line cost for transition of volume from Tidahom to Novia Park, 31 million is part of the 122 million ESCs in Q4 of 2025. So with that, I hand over to you again, Kristoffer.

Thank you, Robert. So next slide, slide 12, is just an update of the market and the market forecast. And this relates to the housing starts that we see in the different Nordic countries. And where we stand today, we still haven't received the Q4 update from the statistics on 25. However, our forecast is that the dwellings now gradually seem to increase. And you see the same pattern in all the different countries, whereas we have had a strong decline in number of dwellings being started. But in 25 in all countries, we see a gradual improvement of the housing starts. And it should be added here that for Nobia to deliver the kitchen to these housing starts would take about 12 to 18 months before we come into the project, as we have one of the products that come in at the last point in this. So we do foresee a recovery eventually, and again, coming back to potential in the second half of 26, we see it materialize at a somewhat higher speed. Now over to you again Robert.