NOBINA INTERIM REPORT MARCH–AUGUST, 2013

Financial highlights

Of the second quarter of 2013/2014

  • Net sales amounted to SEK 1,718 million ( 1,706), an increase of 0,7 %.
  • Operating profit reached SEK 107 million (83).
  • Earnings after tax amounted to SEK 31 million (54), and earnings per share amounted to SEK 0,05 (2,16).
  • Cash flow from the operations was SEK 209 million (282).
  • Investments, primarily for the purchase of buses, amounted to SEK 18 million (387).

Of the first six months of 2013/2014

  • Net sales amounted to SEK 3,564 million (3,544), an increase of 0,6 %.
  • Operating profit reached SEK 172 million (148).
  • Earnings after tax amounted to SEK 27 million (42), and earnings per share amounted to SEK 0,04 (1,67).
  • Cash flow from the operations was SEK 371 million (406).
  • Investments, primarily for the purchase of buses, amounted to SEK 54 million (734).

Business highlights of the first six months of 2013/2014

  • Nobina Sweden won tenders for traffic contracts for Västtrafik, comprising around 250 buses and traffic for a period of eight years, with the option for an additional two years. The estimated value is close to SEK 4 billion over the contract period.
  • Nobina Sweden won a tender for traffic in Malmö city, covering approximately 100 routed buses. The agreement is for ten years, with the option for three additional years, and is expected to be worth around SEK 2.5 billion over the term of the agreement.
  • Nobina Finland won a tender for 31 buses in Helsinki, making Nobina the largest operator in Helsinki.
  • Nobina Denmark was awarded the job guarantee price by TUC DK. The award is given to a business that has made an extraordinary, remarkable and commendable effort to reduce unemployment (mainly in the transport industry).
  • Nobina Sweden won the tenders for traffic contract in Sundsvall, Njurunda, Timrå and Matfors, containing 200 employees and 80 buses for eight years. The contracts have a clear environmental imprint as Sundsvall city will be served by buses with hybrid technology.
  • Nobina lost the tender for Härnösand, resulting in a decision to close operations affecting more than 30 employees.

Significant events after the end of the period

  • Nobina Sweden won a tender for traffic for Värmlandstrafiken. The contract comprise traffic of around 160 buses and run for a period of ten years, with option for an additional two years. The estimated total value is more than SEK 3 billion over the contract period, starting in December 2014.

CEO’s comment

Improved performance and intensified business activity

I am pleased to report improved performance for Nobina. Revenue for the first six months of 2013/2014 increased by 0,6 percent to SEK 3,564 (3,544) million and operating profit (EBIT) reached an all time high of SEK 172 million (148). In the second quarter revenue grew by 1 percent to SEK 1,718 million and operating result climbed to SEK 107 million (83).

The market in the fiscal year 2013/14 is characterized by an exceptional number of competitive tenders within regional traffic. Nobina has won several of the large
tenders, whereof the most recent was for traffic contracts for Värmlands­trafiken. These contracts have an estimated value of more than SEK 3 billion, operating traffic of around 160 buses. The contracts run for a period of ten years with an option of an additional two years.

We also won tenders for contracts in Skaraborg and Borås with an estimated total value of close to SEK 4 billion over the contract period.

Nobina Finland won a tender for operating 31 buses in Helsinki, making Nobina the largest operator in Helsinki.

We won tenders for traffic contracts in the Sundsvall region, served by buses with hybrid technology.

Our ongoing work to shift to operating more incentive-based contracts, should contribute to stronger involvement of us as operator in developing public transportation and subsequently in enhanced customer experience and increased travelling.

An extensive contract portfolio and large tender volumes provide stability, while the growing number of contracts that feature incentives, allow for growth and better margins.

We are looking forward to a year of continued high business activity.

Stockholm, September 25, 2013

Ragnar Norbäck
President and CEO

For further information please contact:
Ragnar Norbäck, President and CEO
+46 8-410 65 000

Per Skärgård, CFO
+46 8-410 65 056

Ingrid Håkanson, IR Manager
+46 8-410 65 051

The Nobina group is the largest company in the Nordic region within the area of public transport by bus. The operations include contractual regional traffic in Sweden, Norway, Finland and Denmark as well as inter-regional traffic through the subsidiary Swebus. The Nobina Group has revenues in excess of SEK 7 billion, operates 3,500 buses and, with approximately 260 million passenger journeys per year, is one of the larger passenger transport companies in northern Europe. More information is available on www.nobina.com

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Quotes

The first six months was a fruitful period, and Nobina has won several important tenders.
Ragnar Norbäck, President and CEO