Strategic & Emerging risks

Political and Macro-economic risk

Demand for Nobia’s products is affected by gen-
eral macroeconomic trends and the subsequent fluctu- ations in its customers’ purchasing power and consump- tion patterns. Macroeconomic or political decisions and events around the world impact Nobia’s operations, both locally and on a global scale. Political uncertainty and weak macroeconomic conditions can indirectly affect
demand for kitchens. Business risks linked to political deci- sions on restrictions, for example, related to trade tar-
iffs or reduced freedom of movement, also result in more expensive import, less competitive export and order can- cellations, etc.

Nobia has sales in the Nordic region, the UK, Nether- lands and Austria and purchases raw materials and com- ponents from Europe, including Northern Italy and Asia/ Australia. As part of its normal business operations, Nobia has extensive accounts receivable and accounts payable, which are affected by access to liquidity in the global econ- omy. Changes in global politics and the macro economy could have a material impact on Nobia’s income, operating margin and financial position.

For all its operations, it is important that Nobia endeav- ours to manage the effect of forthcoming economic fluctu- ations by taking a number of measures. Examples of these measures are reducing costs, reviewing capacity and produc- tion structure and creating higher customer value through product innovation. Nobia works continuously to monitor, evaluate and attempt to predict changes in the business envi- ronment in the form of political decisions and changes to rules in the areas that are particularly important to its oper- ations. Nobia is active in various national and international trade associations and in other types of partnerships. The purpose is to gain early knowledge of and actively contribute to the development of areas that are important to the com- pany’s operations. Accordingly, Nobia needs to take proac- tive measures to assess and manage these risks. These risks to the left have been entirely or partly realised as a conse- quence of COVID-19, among other factors.

Not meeting customers demand and preferences

Demand for Nobia’s products is affected by general macroeconomic trends and the resulting fluctuations in its customers’ purchasing power and consumption patterns, whereby prices, the number of transactions in the housing market and access to financing are key factors.

Key success factors for Nobia’s long-term growth and profitability are our ability to offer attractive, innovative and sustainable products, services and brands and to make these available to customers and consumers over the product life cycle.
Digitalisation is also changing customer and consumer behaviour, preferences and demand. Furthermore, greater climate awareness is starting to change customer expecta- tions and demands.

Nobia’s focus on customer and consumer insight guides its innovation activities, ensuring that new products, services are competitive and positioned in the relevant sales chan- nels.
Continuous investments in research and development to develop products and designing products with a life cycle perspective in line with customer demand and expectations, even during economic downturns. Nobia also places great importance on developing processes, products and informa- tion to ensure customer satisfaction, for example, by offer- ing eco-labelled products and ensuring that the products we produce and the materials we use comply with our own and our stakeholders’ standards.
Nobia is participating in the increasing digitalisation trend and its impact on customers, consumers and channels, for example, through online sales.