Nobia Annual Report 2019
Total Page：16
File Type：pdf, Size：1020Kb
2019ANNUAL AND SUSTAINABILITY REPORT EUROPE’S LEADING KITCHEN SPECIALIST THE KITCHEN IS THE HEART OF THE HOME The kitchen is a room that is increasing in significance — it has gone from being a place for preparing food to becoming a natural place for many of our activities, and it expresses our lifestyle. As a leading kitchen group, Nobia is at the leading edge of designing new products and kitchen concepts to meet the latest needs and to help consumers live more sustainably. We want to make it simple for our customers to have inspiring kitchens in their homes. CONTENTS NOBIA 2019 BOARD OF DIRECTORS’ REPORT 00 Nobia in brief 46 Board of Directors’ Report 02 Nobia 2019 54 Risks and risk management 03 Highlights 04 CEO’s comments FINANCIAL STATEMENTS 06 How Nobia creates value 60 Consolidated income statement, consolidated statement of comprehensive income and comments BUSINESS ENVIRONMENT, STRATEGY 63 Consolidated balance sheet and comments AND GOALS 65 Change in consolidated shareholders’ equity 10 Trends affecting our kitchens 66 Consolidated cash-flow statement 12 The European kitchen market and comments 14 Strategy for profitable growth 67 Parent Company income statement, balance sheet,cash-flow statement and change in 18 Targets and fulfilment shareholders’ equity 69 Notes OPERATIONS 96 Reconciliation of alternative performance 22 Nordic region measures 26 UK region 97 Board of Directors’ assurance 30 Central Europe region 98 Audit report OUR SUSTAINABILITY INITIATIVES CORPORATE GOVERNANCE AND 34 Sustainable value creation THE NOBIA SHARE 35 Value chain 100 Corporate Governance 36 Focus on sustainability initiatives 106 Board of Directors 37 Sustainable innovations 108 Group management 38 Timber from sustainable sources 110 The Nobia share and shareholders 40 Reduce CO emissions 2 112 Five-year overview 41 Responsible sourcing 113 Definitions – Performance measures 42 Resource efficiency 114 Sustainability 44 Employee well-being 117 2020 Annual General Meeting The audited Annual Report and consolidated financial statements can be found on pages 46–97. The statutory Corporate Governance Report can be found on pages 100–109 and the statutory Sustainability Report can be found on pages 32–45, 52–58 and 114–116. The kitchen shown on the front cover is the Marbodal Fagerö. EUROPE’S LEADING KITCHEN SPECIALIST Nobia is a kitchen specialist with operations along the entire value chain from design to installation of the new kitchen. We manufacture and sell kitchens in seven European countries through own stores, franchise stores and retailers as well as directly to major customers. Through the years, the Group has developed and strengthened through acquisitions. Our specialisation and size means we can leverage shared skills and capitalise on economies of scale. THREE REGIONS Nobia operates in seven countries: UK, Denmark, Sweden, Norway, Finland, Netherlands and Austria. We are organised into three regions: Nordic, UK and Central Europe. We have 6,109 employees in total. NORDIC REGION UK REGION 24 own stores 167 franchise stores 210 own stores Approximately 450 retail stores approximately 500 retail stores 6 production facilities 5 production facilities CENTRAL EUROPE REGION >500 sales locations 3 production facilities NET SALES OPERATING PROFIT1 EMPLOYEES PER REGION, % PER REGION, % PER REGION, % Nordic, 49 Nordic, 67 Nordic, 40 UK, 26 UK, 42 UK, 49 Central Europe, 7 Central Europe, 11 Central Europe, 9 1) Excluding items affecting comparability, Group-wide and eliminations. NOBIA IN BRIEF STRONG BRANDS Our brands enjoy a high level of recognition and appeal among customers, and have long served their respective markets. These brands are primarily in the mid-price and premium segments. In addition, we have tactical brands for specific sales channels and operations. CUSTOMISED SALES CHANNELS Nobia sells kitchens to both consumers and professional customers. Kitchen furnishings and other kitchen products represent the majority of our sales, but in certain markets we also sell installation services and — to a limited extent — other joinery products. Kitchen furnishings reach end customers through various sales channels. 401 stores, of which 234 own stores and 167 franchise stores. CUSTOMER SEGMENTS, % SALES PER PRODUCT, % SALES CHANNELS, % Project, 40 Kitchen furnishings, 64 Kitchen specialists, own stores and franchises, 59 Retail, 37 Other products, 30 Direct project sales, 17 Trade, 23 Installation services, 6 Builders’ merchants/ DIY chains, 17 Other retailers, 7 INSPIRING KITCHENS MADE EASY We nurture kitchen dreams and put the customer experience front and centre. We strive to make the purchasing process as simple as possible. With our sound know-how and long experience, we create and realise fantastic kitchen solutions that inspire and facilitate a more sustainable life in the kitchen. We provide support in the entire process, from inspiration and concept to a finished, functional and attractive kitchen. 12 100% 62% OF 14 PRODUCTION FACILITIES RENEWABLE ELECTRICITY OF ALL WOOD WASTE HAVE CERTIFIED ENVIRONMENTAL IN PRODUCTION GOES TO MANUFACTURING MANAGEMENT AND OWN STORES NEW PRODUCTS NOBIA ANNUAL AND SUSTAINABILITY REPORT 2019 1 NOBIA 2019 2019 FIVE-YEAR OVERVIEW Complete five-year overview, refer to page 112 NET SALES, OPERATING CASH FLOW, SEK M SEK M 15,000 1,200 Net sales Operating 10,000 13,930 800 cash flow SEK m 648 5,000 400 SEK m 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 20191 1) Excluding effect of IFRS 16 Leases. RETURN ON OPERATING PROFIT1, SEK M OPERATING CAPITAL, SEK M AND OPERATING MARGIN1, % 45 1,500 15 Return on Operating profit 30 operating capital 1,000 20.4% 1,132 15 500 SEK m 0 0 0 2015 2016 2017 2018 20191 2015 2016 2017 20181 2019 1) Excluding effect of IFRS 16 Leases. 1) Excluding items affecting comparability. EARNINGS PER SHARE1, SHARE OF RENEWABLE ELECTRICITY SEK IN PRODUCTION AND OWN STORES, % 9 100 Earnings 75 6 100% renewable 4.79 50 SEK per share electricity in 3 production and 25 own stores 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 1) After dilution. 2 NOBIA ANNUAL AND SUSTAINABILITY REPORT 2019 HIGHLIGHTS NEW PRESIDENT AND CEO DIRECTIONAL DECISION ON MAGNET NAMED BEST KITCHEN On 1 September, Jon Sintorn took office INVESTMENT IN NEW, HIGHLY BRAND IN THE UK as the new President and CEO of Nobia. AUTOMATED PLANT Magnet, Nobia’s largest brand in the Jon most recently worked at Permobil, In 2020, construction will begin of a highly UK, took first and second place in the which operates in electric wheelchairs automated plant that will replace the one kitchen categories of the prestigious and other aids for the disabled, where in Tidaholm in 2024. With significantly “2019 Which? Kitchen Brands Review”. he was President and CEO for nine higher capacity, leading sustainability per- “Which?” is the UK’s foremost inde- years. Morten Falkenberg, who was formance, shorter lead times and lower pendent consumer organisation which President and CEO of Nobia for nearly manu facturing costs, it will be an important awards “best buy” recommendations to ten years, transitioned to roles includ- tool in supporting Nobia’s future growth products that represent the best in their ing industrial adviser to Nobia’s largest and market share opportunities. The respective categories. owner, Nordstjernan. investment will be Nobia’s largest ever. HIGHLIGHTS SEVERAL AWARDS OPTIMISING THE NORDIC REGION SALES TO PRESTIGIOUS IN SUSTAINABILITY STORE NETWORK RESIDENTIAL PROJECTS We received a number of awards for Nobia’s store network in the Nordic Even though market performance for our sustainability initiatives during the region is undergoing an improvement major residential development proj- year, including ranking as the second best programme. This includes the Norway ects in London’s higher price segments company in the Consumer Goods cat- stores switching to the franchise concept, has been impacted by the general uncer- egory of 2019 Sustainable Companies HTH in Denmark inaugurating three flag- tainty surrounding Brexit, Nobia had a ranking. Sustainable Companies is an ship stores and converting a number successful year. Commodore and CIE, annual ranking of the sustainability initia- of stores to the franchise concept, and which specialise in project sales, deliv- tives of OMX listed companies. Nobia launching a new concept for Marbodal’s ered exclusive kitchens during the year also topped the “Walking the Talk” franchise stores in Sweden. The experi- to several major projects in London, report, a review of what companies on ence so far has been an excellent one: a such as Battersea Power Station, South- the Stock Exchange Large Cap list say higher level of service, better availability bank Place and South Quay Plaza. that they’ll do and what they have done. and good sales performance overall. NOBIA ANNUAL AND SUSTAINABILITY REPORT 2019 3 CEO’S COMMENTS Stronger foundation for creating value would like to begin by saying how pleased I am to be to better meet the needs of our builders while improving loyalty part of the Nobia Group. Since I took over as President programmes and strengthening the organisation with local busi- and CEO on 1 September, I have devoted a great deal ness development resources. The experience so far has been a of my time to visiting the company’s operations in vari- promising one, with significant increases in sales and a strength- ous countries. I met passionate employees everywhere ened market position, which is an excellent foundation for con- who, like me, feel very proud to represent the Group tinued success. and all its strong local brands. The kitchen is a room that is increasing in significance. It has gone from being Strengthened position in Nordic consumer sales a place for preparing food to being the heart of the In the Nordic region, we have strong brands with strong positions home, a place for many different social activities and an on both the project market and the consumer market.