Nobia AB (publ)

Good day and thank you for standing by. Welcome to the Nobia Q1 Report 2026 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1, 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1, 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speakers today, Christopher Lundfeldt, CEO, and Robert Belvic, CFO. Please go ahead.

Thank you very much, and good morning, everyone, and welcome to Novia's Q1 update. Let's take the first slide, please. Q1 has been a really defining quarter for Nobia as we reached several key milestones that strengthened the company and set a clear direction going forward as the number one kitchen powerhouse of the Nordics. During the quarter, we completed the divestment of our UK operations and carried out the share rights issue with strong support from our shareholders and main owners. In addition, we also put our cost saving program into action with benefits expected to start coming in through from Q3. and we signed a new loan facility with our lenders and long-term partners. These achievements required a great deal of effort, and on behalf of the company, I would like to sincerely thank our employees, our shareholders, our main owners for their support in the rights issue, and our lenders for their continued trust and long-term commitment. Performance for the quarter was largely in line with expectations against the backdrop of continued soft market conditions. Demand remained at historically low levels, with volumes broadly flat year over year. However, and importantly, we saw a shift in dynamics during the quarter, with growth finally starting to pick up in the B2B market. Partially of what we saw was a temporary softer B2C market. Despite this flat market, we delivered an organic growth of 2%, driven by an improved product mix, higher average order values, in line with our stated priorities. This represents, then, our third consecutive quarter of organic growth. Adjusted gross margin improved by one percentage point compared to last year, supported by improved average order values and better product mix, as I was referring to, but also due to lower manufacturing costs. Over recent years, we have simplified and harmonized our product range, improved discipline around pricing, and reduced exposure to the lowest end of the market, which now is giving us slight headwind. However, there is much more to be done on this end. Reported gross margin is temporarily affected by the ramp-up cost at our new Novia Park facility, which is driven then by double staffing during the transition from Sida Home to Novia Park. And we will come back to that a little bit later in the presentation. As a result of this, the non-adjusted gross margin was somewhat below last year's level. Increased slightly in the quarter, mainly due to timing effects between period. Our focus on cost efficiency remains unchanged, and we are currently executing on our cost reduction program in connection with a carve-out of the UK business. This program that was launched in Q4 2025 is expected to generate run rate savings of about 80 million starting from third quarter of 2025. Adjusted EBIT came in at 73 million Swedish crowns, slightly ahead of last year, with an adjusted EBIT margin of 5.1%. We also reported solid cash flow from operating activities compared to last year, mainly driven by improved working capital performance, and Robert will give some more details on this later on. Then, please, moving over to the next slide, which is a deep dive of the kitchen market in the Nordic. And again, the market conditions remain challenging with low housing starts and subdued transaction activity. That said, we are seeing early signs of improvement, particularly in Sweden and as before in Denmark, with B2B activity showing a more noticeable pickup. However, it is still a bit too early to conclude whether this represents a sustained recovery or a continued volatility. Following the divestment of the UK business, Around 80% of our sales are now B2B related, meaning that even the modest improvement in this segment, which we are probably about to see, can have a meaningful earnings impact. Finland, however, remains extremely challenging to market, but our factory closure in Finland in Q4 has reduced our exposure to volume swings and increased our flexibility to step away from low margin, high price pressures segments. In B2C, the market declined slightly during the quarter, as I said, but this was mainly related to a soft start in January, February. Activity improved modestly in March, reflected in higher web traffic for our sites, and then increased design appointments in our stores. However, also here it remains a bit too early to draw firm conclusions on the underlying demand. particularly given the continued flat level of housing transactions. Over to the next slide, please. And just to give you some highlights on the major initiatives that have just been completed. And as we stand on the other side of these activities, after a very intense period of time, we are very pleased with what the organization has managed to do in still trying to operate in a challenging market while also ramping up one of the most advanced kitchen factories. So a brief summary of this. First of all, we have again divested the UK operations and closed the accounts in March for this sale. This reduced our debt liability. for leasing of about 750 million Swedish crowns. The transaction may result in a consideration of up to 20% of the valuation, and we strongly believe that this business will prosper over time, but the synergies with our Nordic business are very few, and we believe it needs another type of ownership while we can then focus on our strong Nordic position instead. We also deleveraged our financial profile by closing an oversubscribed share rights issue amounting to 1.5 billion Swedish crowns. So thank you a lot, again, all shareholders and main owners for guaranteeing this transaction. Thirdly, we have refinanced a 2.5 billion revolving credit facility with our current lenders with improved terms because of the considerably low leverage that we get down to now, but also normalize market-based covenant structure. And fourthly, then, we have launched the cost reduction initiatives to carve out the UK operations, which we are in the midst of, with the expected run rate savings coming through in Q3. So let's move on on our update to priorities going forward. Next slide, please. Well, the first three blocks here are representing our strategic priorities, and then we have two blocks representing our strategic enablers. Going out first with extracting HTH full potential. HTH is a very strong pan-Nordic brand with deep roots in the Danish kitchen design. And it operates through a scalable asset-light franchise model across the Nordic, supported by highly professional partners. As part of our strategy, we intend to further expand its franchise model and continue to capitalize on the strong momentum within this brand. Secondly, our country-leading brands, primarily Marbodal, Sigdal and Invita, hold very valuable positions in their respective home markets, although they have limited recognition beyond national borders. These brands are core to our strategy, where we combine franchise expansion with increased penetration in the builder merchant segment. That's particularly true in Sweden, where we now have more than 200 sales points in the builder merchant. We also aim to further harmonize these three brands in the coming years, and we think they have a lot to learn from each other, both when it comes to IT infrastructure, marketing, and campaigning, et cetera. The third pillar is to realize the potential of a consolidated supply chain centered around Novia Park. Our target is to leverage industrial scale of automated manufacturing to deliver high quality, excellent sustainability, lower conversion costs, and higher delivery precision. With this, we can also drive a harmonized Nordic product range, which allows for more efficient centralized sourcing. We have in our strategy two enablers, the first one being the efficiency through complexity reduction, and obviously this would entail then reducing complexity through harmonization of product range, systems and processes, but also on the back of cost reduction programs that have been launched. The second one is to be well positioned to capture any eventual growth as the market will start to recover. And just to deep dive on one of our most important investments of all time in Novia is to realize the potential of a consolidated supply chain network. And the first step in this has been to harmonize the Nordic range to enable factory and sourcing benefits. And this has now been completed. Further on, we have consolidated the Finnish operation into Denmark in Q4 2025, meaning that we have closed the Finnish factory and we now supply the Finnish market from our Danish factory in Ölgud. We inaugurated Novia Park in October 2025. And Noga Park is now operating as the main internal supplier of components and flat pack kitchen, which is still a limited amount of kitchens for us, the flat pack. And they do so across the entire Nordic network. And currently during spring here, we have an ongoing transfer of kitchen volume from our factory in Tidaholm to Noga Park. And with this, highly automated factory we will of course over time further optimize the machinery and the processes in the factory. We have a remaining capex of approximately 200 million Swedish crowns during 2026 of which we have spent roughly 50 million Swedish crowns in Q1 and therefore remains another roughly 150 million. And the target of this facility and the consolidated supply chain is to reach an EBITDA uplift of 3.5%. Let's move over to a new slide for us, but a very important one. As I was very proud to present on the behalf of NOBIA, our first sustainability report prepared in accordance with CSRD. And here we were demonstrating that we continue to outperform our science-based targets for scope one and two emissions. We also have a strong and well-defined roadmap going forward, particularly linked to our modernized manufacturing processes at Noga Park. Strengthening our sustainability credentials remain a strategic priority, not only from a climate perspective, but also to reinforce our position as the leading B2B supplier and to help drive the industry forward. Leveraging our new technology in Novia Park, we have launched two new trademarks that we are very proud of, Tone Tech and Prime Shell, which represent genuine step changes in sustainable surface treatment and deliver exceptional durability and quality for long-term use in demanding environments. And with that, I hand over to Robert to shed a bit more light on the financial performance and the balance sheet.

Okay. Thank you, Christopher. Let's look into the financial position of Norbea in the quarter and just reiterating what Christopher just alluded on when it comes to investments in Norbea Park in Jönköping. In the first quarter, the investment amounted to roughly 50 million SEK with a corresponding cash outflow of 68 million. And also then for the remainder of 2026, as Chris Hopper said, roughly 150 million of investment with a corresponding cash outflow of about 190 million. If we then also look beyond 2026, What we are looking at then, it's really coming back to the historical levels. Investments cut back in relation to sales of around two to four percent. So that's the estimate for the period ending or starting in 2027 and onwards. If we look at the balance sheet, what we are singling out here is following the UK divestment, there's a substantial decrease of our leasing liabilities of roughly 750 million, which is then evident if you're scrutinizing our balance sheet. And then also looking at the net debt, the financial net debt following the rights issue, the net debt amounted to 1.7 billion SEK as of end of March, which is then a decrease from 2.8 billion SEK as of 31st of December 2025. And then if we look at the numbers in the chart, looking at the cash flow then, cash flow from operating activities in the quarter, 100 million SEK compared to 28 million. If we look at the free cash flow, minus 54 million compared to minus 157 million. And then you have the split of the underlying improvements, the decline in operating profits, the improvement in working capital, and the less investments we did this quarter compared to the corresponding quarter last year. And then final remark on this one then, just once again, net debt in the quarter closing balance 1.7 billion SEK versus 2.4 billion SEK the corresponding quarter last year, which then gives us a financial net debt equity ratio 0.8 versus 0.61 this quarter. So with that I hand over and hand back to you Kristoffer to conclude the presentation.