Full Year Report 2001

Full Year Report 2001 (Gothenburg, 7 February 2002)The Nobel Biocare Group Sales increased by 26% to SEK 2 663.2 million (2 109.5). Sales in the fourth quarter amounted to SEK 754.1 million (634.8). · Operating income amounted to SEK 363.7 million (289.6). Operating income before non-recurring items amounted to SEK 430.1 million (267.3). The year-on-year currency effects were positive, SEK 23 million. Operating income before non-recurring items in the fourth quarter amounted to SEK 136.1 million (123.7). · Cash flow from current operations amounted to SEK 684.4 million (263.8). · Earnings per share amounted to SEK 7.45 (5.35). · Nobel Biocare AB acquired Sandvik AB's 50% share in the dental technology company Procera Sandvik AB, on 27 December 2001. Nobel Biocare's shares were upgraded to the Most Traded-segment of the A- list on the Stockholm Stock Exchange, on 1 January 2002 .SEK M Full year Full year Change 2001 2000 Net sales 2 663.2 2 109.5 +26.2% of which Dental Implants 2 329.5 1 851.0 +25.9% of which Procera® 333.7 258.5 +29.1% Operating income before goodwill amortization (EBITA) 494.5 326.4 +51.5% and non-recurring items Operating income (EBIT) 430.1 267.3 +60.9% before non-recurring items Non-recurring items -66.4 22.3 - Operating income (EBIT) 363.7 289.6 +25.6% Income before tax 339.0 247.8 +36.8% Net income 189.0 134.1 +40.9% Cash flow from current 684.4 263.8 +159.4% operations Earnings per share, SEK 7.45 5.35 +39.4% Earnings per share excluding goodwill amortization 12.62 6.82 +85.0% and non-recurring items Average number of shares 25 346 215 25 069 782 Market value 11 005 7 179 The Nobel Biocare Group Group sales Nobel Biocare's sales increased by 26% (17% currency adjusted), compared with 2000, and reached SEK 2 663.2 million (2 109.5). Sales in the fourth quarter amounted to SEK 754.1 million (634.8). Dental Implant sales increased by 26% (17% currency adjusted) to SEK 2 329.5 million (1 851.0), compared with 2000. Sales in the fourth quarter amounted to SEK 656.3 million (557.6). Procera® sales increased by 29% (18% currency adjusted) to SEK 333.7 million, (258.5), compared with 2000. Sales in the fourth quarter amounted to SEK 97.9 million (77.2). Nobel Biocare was able to maintain positive sales momentum throughout the year. Even the fourth quarter of 2001 was strong despite back-order problems for the new TiUnite Replace implants and a strong fourth quarter in 2000. [REMOVED GRAPHICS]Group results Operating income (EBIT) before non-recurring items amounted to SEK 430.1 million (267.3). The operating margin (EBIT) before non-recurring items was 16.1% (12.7%). Operating income (EBIT) amounted to SEK 363.7 million (289.6). The year-on-year currency impact on operating income was a positive SEK 23 million. Operating income in the fourth quarter amounted to SEK 90.5 million (123.7). Operating income before non-recurring items amounted to SEK 136.1 (123.7). Operating expenses amounted to 49.1% (53.4% excluding the cost of redeeming synthetic options in 2000) of net sales in 2001. [REMOVED GRAPHICS] Goodwill amortization amounted to SEK 64.4 million (59.1) and depreciation increased by SEK 24.1 million to SEK 86.6 million, mainly due to currency effects. The EBITA margin before non-recurring items amounted to 18.6% (15.5%). An assortment rationalization program was completed in 2001, resulting in a reduction of approximately 1 000 components (25% of the total assortment). A total of SEK 22.5 million was included in the cost of goods sold in relation to this program. This reduction, together with improved materials management, led to an improvement in inventory turnover, and, together with other measures, this resulted in a significant reduction in working capital of 156.3 million. [REMOVED GRAPHICS] Non-recurring items of SEK 66.4 million were recorded in 2001. In Q3 2001, the accruals of severance pay of SEK 20.9 million for the former executive management was reported as an ordinary expense. This item has now been reclassified retroactively as a non-recurring item. In Q4 2001, additional non-recurring items were charged with accruals for scrapping costs, due to a new, more conservative policy for inventory valuation (SEK 39.1 million), and the costs of reorganizations in the European subsidiaries (SEK 6.4 million). Non-recurring items of SEK 22.3 million in 2000 related to the reimbursement of SPP surplus pension funds. Financial income and expenses, net, totaled SEK -24.8 million (-41.8). Income before tax amounted to SEK 339.0 million (247.8). As of 1 January 2001, a number of new accounting principles were introduced in Sweden, whereof the most important one requires all companies to account for deferred taxes. In 2001, SEK 150.0 million (113.7) was reported as taxes, of which SEK 33.8 million (36.7) is current tax and SEK 116.2 million (77.0) is deferred tax. The effective tax rate for 2001 has been affected by the Group's significant taxable income in high-taxed countries and some extra-ordinary tax accruals. For comparative purposes, the income statements and balance sheets for 2000 have been recalculated. Investments Capital expenditures on tangible fixed assets totaled SEK 102.2 million (91.7). Personnel The number of employees at the end of December 2001 was 1 328 (1 196), of whom 418 (379) were employed in Sweden. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/02/07/20020207BIT00030/bit0001.doc The full year-end report http://www.waymaker.net/bitonline/2002/02/07/20020207BIT00030/bit0001.pdf The full year-end report