Nobia (NOBI) Investor update summary

Strategic focus and business consolidation

• Announced divestment of UK operations to Alteri Partners, including Magnet, Gower, Commodore, and CIE brands, to focus on core Nordic markets with higher margins and well-invested production facilities; buyer assumes SEK 746 million in lease liabilities.

• Launched cost and restructuring initiatives targeting SEK 80 million in annual run-rate savings from Q3 2026, aligning organizational structure with future business needs.

• Fully guaranteed rights issue of SEK 1.5 billion to be completed in Q1 2026, demonstrating main shareholders' commitment and strengthening the balance sheet.

• Amended and extended SEK 2.5 billion revolving credit facility with improved terms, including lower margins and normalized covenants.

• Multi-brand strategy targets mass-premium and adjacent segments, leveraging strong B2B and B2C positions and focusing on leading brands such as HTH, Marbodal, Sigdal, and Invita.

Nordic market outlook and operational strategy

• Nordic kitchen market expected to recover, with housing starts projected to drive kitchen sales growth from 2026 after several years of decline.

• Investment in Nobia Park manufacturing facility enables cost efficiency, harmonized product range, and consolidated sourcing, with potential for 30% lower conversion costs and industry-leading sustainability.

• Operational flexibility prioritized to capture B2B opportunities and new market segments within the Nordics.

• Efficiency gains targeted through complexity reduction, harmonized supply chain, and capitalizing on market recovery.

• Focus on extracting full potential from leading brands and consolidating supply network.

Financial performance and targets

• Excluding UK, business has historically delivered EBIT margins above 10% under normalized conditions, with recent improvements despite market headwinds.

• Nobia excluding UK generated SEK 5.6 billion in net sales and an average EBIT margin of 8.6% (2015–2025-09LTM).

• Capital expenditures expected to return to historical levels (2%-4% of net sales) as investment cycle ends.

• Net debt currently at SEK 2.6 billion with leverage of 6.8; rights issue and refinancing expected to significantly improve leverage and reduce interest costs.

• Financial targets: 3-5% organic growth, EBIT margin above 10%, net debt/EBITDA below 2.5x, and resumption of dividend payments over time.