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NOBINA AB INTERIM REPORT March 1 – May 31, 2011

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FIRST QUARTER (March 1 – May 31, 2011)

  • Sales reached SEK 1,814 million (1,729), an increase of 4.9% or SEK 85 million.
  • Operating profit of SEK 60 million (48), an improvement of SEK 12 million. Positive impact in regional traffic and adverse developments in interregional traffic.
  • Earnings for the period amounted to SEK -12 million (1), negatively affected primarily by an unrealized exchange rate loss on the Senior Notes. Earnings per share amounted to SEK -0.47 (0.04).
  • Cash flow from the operations was SEK 147 million (147). Cash flow after net investments amounted to SEK 110 million (45).
  • The Group's investments, primarily for the purchase of buses, amounted to SEK 116 million (209), of which investments of SEK 102 million (190) were financed through leasing agreements and SEK 14 million (19) were financed in cash.

SIGNIFICANT EVENTS DURING THE QUARTER

      • Nobina won a traffic contract in Tromsö, Norway, worth in total approximately NOK 1.6 billion, with scope for incentive-based compensation. The traffic contract covers 115 buses, of which 30 are new hybrid buses. Traffic start will take place in February 2012.
      • Nobina won traffic for nine buses in Hilleröd, Denmark, in the Movia A8 contract, and won traffic for 14 buses in Helsinki, Finland, while traffic covering 23 buses was lost in Norway.
      • Niels Peter Nielsen took up the position of new President of Nobina Denmark in May.

      SIGNIFICANT EVENTS SINCE THE END OF THE QUARTER

          • Nobina started the new traffic contract in Norrtälje at the end of June.
          • Nobina has exercised a possibility for early termination of a contract in Gästrikland covering 45 buses, and will end the traffic in 2013.

          CEO's comments

          The new financial year has started well. We increased our market share during the first quarter, among other things thanks to what is, for Nobina, an historic contract gain in Tromsö, Norway. Despite the fact that the harsh winter continued into March, with increased costs as a consequence, we succeeded in delivering an improved operating income compared with last year. The trend within regional traffic was strong, primarily in Sweden and Finland, while interregional bus traffic had it tougher, since passengers are choosing higher price alternatives in the ever stronger Swedish economy.

          A new collective agreement has been signed in Sweden which is expected to create a stable cost trend for us during the next two years. At the same time, we note interesting changes in the competition situation on the Nordic passenger traffic market. Our ambition is to continue to operate efficient traffic planning and utilization of the bus fleet. We look forward to a high tender level on the market where we will seize the opportunities to win contracts with strong profitability potential.

          Ragnar Norbäck, CEO

          Contacts

          For further information please contact:
          Ragnar Norbäck, President and CEO,  +46 8-410 65 058
          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, and its business concept is to simplify the customers' daily travel. The operations include contractual regional traffic in Sweden, Norway, Finland and Denmark as well as inter-regional traffic through the subsidiary Swebus. With approximately 266 million passenger journeys per year, is one of the ten largest passenger transport companies in northern Europe.

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          Bus Public Transport Nobina

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