NOHO PARTNERS PLC FINANCIAL STATEMENTS RELEASE 1 JANUARY – 31 DECEMBER 2020: The year of COVID-19 caused an operating loss of MEUR 24 – following structural changes and a new financing agreement, the company prepares for a rebuilding phase

NoHo Partners PlcFINANCIAL STATEMENTS RELEASE 18 February 2021 at 8:15 a.m.NOHO PARTNERS PLC FINANCIAL STATEMENTS RELEASE 1 JANUARY – 31 DECEMBER 2020The year of COVID-19 caused an operating loss of MEUR 24 – following structural changes and a new financing agreement, the company prepares for a rebuilding phaseNoHo Partners operated in a restricted operating environment in all of the countries in which it operates during the last quarter of 2020. As a result of the acceleration of the pandemic, tightening restrictions on restaurants, weakened customer demand, complete halt of international business operations and lack of corporate sales during the pre-Christmas season, the Group’s turnover for October–December remained at approximately 42 per cent of the previous year, and operating cash flow was MEUR 7.2 negative. The full-year turnover for 2020 decreased to 57.5 per cent of the previous year. With rapid and determined reaction, increased efficiency of operational activities and cost-savings, the company succeeded in limiting the negative impact of the exceptional circumstances on its operating cash flow, which was only MEUR 5.1 negative for the financial period 2020.In January 2021, the Group’s turnover was at a level of 53 per cent of the turnover in the corresponding period last year. February 2021, the company negotiated a financing agreement with its main financiers, which secures the company’s long-term financing position and enables the reconstruction programme after the exceptional circumstances. The company believes that the market will begin to recover and operating cash flow will begin to come back to positive figures during the second quarter of 2021.OCTOBER–DECEMBER 2020 IN BRIEFGroup (continuing and discontinued operations):
Turnover declined by 57.9% to MEUR 31.6 (MEUR 75.2).EBIT fell by 267.7% to MEUR -11.8 (MEUR 7.0).The EBIT percentage was -37.2% (9.3%), a decrease of 498.8%.The result for the financial period was MEUR -11.9 (MEUR 4.9), a decrease of 342.9%.Earnings per share were EUR -0.53 (EUR 0.20), a decrease of 367.7%.Restaurant business (comparable continuing operations):
Turnover declined by 57.9% to MEUR 31.6 (MEUR 75.2).EBIT fell by 284.2% to MEUR -11.9 (MEUR 6.5).The EBIT percentage was -37.7% (8.6%), a decrease of 538.1%.The result for the financial period was MEUR -12.0 (MEUR 4.3), a decrease of 377.0%.Earnings per share were EUR -0.53 (EUR 0.17), a decrease of 414.1%.Operating cash flow fell by 175.3% to MEUR -7.2 (MEUR 9.5).The operating cash flow includes approximately MEUR 1.1 of non-recurring items comprised of salary expenses from redundancies resulting from the co-operation negotiations, expenses relating to expiring leases and credit losses.The result for the financial period includes approximately MEUR 1.9 of depreciation and amortisation from the IFRS 16 impact of expiring leases and write-offs.JANUARY–DECEMBER 2020 IN BRIEFGroup (continuing and discontinued operations):
Turnover declined by 42.5% to MEUR 156.8 (MEUR 272.8).EBIT fell by 178.2% to MEUR -23.9 (MEUR 30.6).The EBIT percentage was -15.2% (11.2%), a decrease of 236.0%.The result for the financial period was MEUR -29.5 (MEUR 47.7), a decrease of 161.8%.Earnings per share were EUR -1.44 (EUR 2.36), a decrease of 160.9%.The gearing ratio excluding the impact of IFRS 16 liabilities was 192.0%. Interest-bearing net liabilities excluding the impact of IFRS 16 amounted to MEUR 163.4. IFRS 16 liabilities totalled MEUR 153.2. The gearing ratio including the impact of IFRS 16 was 391.0%.Restaurant business (comparable continuing operations):
Turnover declined by 42.6% to MEUR 156.8 (MEUR 272.9).EBIT fell by 233.2% to MEUR -24.5 (MEUR 18.4).The EBIT percentage was -15.6% (6.7%), a decrease of 331.8%.The result for the financial period was MEUR -30.1 (MEUR 11.7), a decrease of 356.4%.Earnings per share were EUR -1.44 (EUR 0.47), a decrease of 408.6%.Operating cash flow fell by 116.9% to MEUR -5.1 (MEUR 30.4).The operating cash flow includes approximately MEUR 1.6 of non-recurring items comprised of salary expenses from redundancies resulting from the cooperation negotiations, expenses relating to expiring leases and credit losses recognised during the financial period 2020. In addition, the operating cash flow includes more than MEUR 1 of costs associated with the closure and reopening of business functions.The result for the review period includes approximately MEUR 6.5 of one-off depreciation and amortisation and impairment comprised of discontinued units and units whose revenue generating capacity is estimated to decline in the future as well as IFRS 16 impacts of expiring leases.Government grants across all of the countries in which the company operates totalled approximately MEUR 12.5 for January–December 2020.SIGNIFICANT EVENTS IN THE FOURTH QUARTER
The Finnish Government tightened the restrictions on restaurant opening hours, alcohol serving hours and customer volume nationwide starting from October 2020 and subject to a one-week transition period. Alcohol serving hours were restricted to midnight and opening hours to 1 a.m. In regions where the pandemic is in the acceleration stage, alcohol serving hours were restricted to 10 p.m. and opening hours to 11 p.m. Customer capacity was limited to half of the normal capacity.The company commenced co-operation negotiations concerning all of the personnel in Finland on 5 October 2020.On 15 October 2020, the Constitutional Law Committee of the Finnish Parliament issued a statement on the Government’s proposal on restaurant restrictions, finding that the proposal partly violates the Constitution of Finland.A Government Decree laid down new restrictions on restaurants in Finland starting from 1 November 2020, and the majority of regions were included in the scope of tighter restrictions for areas in the acceleration and community transmission stages of the pandemic. The new Government Decree on restrictions on restaurants entered into force on 12 December 2020 and will remain in force until 28 February 2021.A ban on selling alcohol in restaurants in Norway entered into force on 9 November 2020, and it remains in force until further notice in Oslo, for example.Restaurants were completely closed in Denmark on 9 December 2020, and only take-away sales are allowed until 28 February 2021.At the end of December, the company’s international restaurants, event venues and nightclubs were closed, and other business areas were subject to strict restrictions.SIGNIFICANT EVENTS AFTER THE REVIEW PERIOD
CBO and Executive Team member Eemeli Nurminen left his post on 1 January 2021.On 4 January 2021, the company announced that Perttu Pesonen, Development Director and Executive Team member, is leaving his post on 1 February 2021.The company announced on 5 January 2021 that its co-operation negotiations resulted in changes in the organisational structure, reduction of 55 jobs and 15 jobs being made part-time in the Group Executive Team, management and administrative specialist positions, as well as part-time and full-time temporary lay-offs concerning approximately 600 at the time.The Group’s turnover for January 2021 was approximately MEUR 7.8, which is about 53% of the turnover for the corresponding period the previous year. Operating cash flow was approximately MEUR -1.8.On 29 January 2021, the company announced that it had acquired Allas Sea Pool’s restaurant business. NoHo Partners became a lessee of the sea spa as of 1 February 2021.The Finnish government issued a bill to the Parliament on 4 February 2021 on temporarily amending the Communicable Diseases Act, whereby the validity of the legislation on restrictions of restaurant operations would be extended until the end of June 2021.The company announced on 15 February 2021 that it had completed negotiations on a long-term financing agreement with its main financiers to secure its financial position and enable the reconstruction programme.SUMMARYThe Group’s turnover for October–December 2020 was approximately MEUR 31.6, which is roughly 42 per cent of the turnover for the corresponding period the previous year. The Group’s EBIT for October–December was about MEUR 11.9 negative and operating cash flow was approximately MEUR 7.2 negative.The full-year turnover for 2020 was MEUR 156.8, which is approximately 57.5 per cent of the turnover for the previous year. The loss of turnover caused by the COVID-19 pandemic financial for the financial period 2020 was estimated to be nearly MEUR 145. The EBIT for the financial period was MEUR 23.9 negative. With rapid reaction, increased efficiency of operational activities and cost-savings, the company succeeded in limiting the negative impact of the exceptional circumstances on its operating cash flow, which was only MEUR 5.1 negative for the full financial period.The operating cash flow for January–December 2020 includes approximately MEUR 1.6 of non-recurring items comprising salary expenses from redundancies resulting from the cooperation negotiations, expenses relating to expiring leases and credit losses recognised during the financial period 2020. In addition, the operating cash flow includes more than MEUR 1.0 EUR million in costs associated with the closure and reopening of business functions. The result for the review period includes approximately MEUR 6.5 of one-off depreciation and amortisation and impairment comprised of discontinued units and units whose revenue generating capacity is estimated to decline in the future, as well as IFRS 16 impacts of expiring leases.The turnover for October 2020 was approximately MEUR 12.3, which is roughly 57 per cent of the turnover for the corresponding period the previous year. Operating cash flow was approximately MEUR -1.9.The turnover for November 2020 was MEUR 10.1, which is approximately 37 per cent of the turnover for the corresponding period the previous year. Operating cash flow was approximately MEUR -2.0.The turnover for December 2020 was MEUR 9.2, which is approximately 35 per cent of the turnover for the corresponding period the previous year. Operating cash flow was approximately MEUR -3.2. The operating cash flow for December includes approximately MEUR 0.9 of non-recurring items comprised of salary expenses from redundancies resulting from the co-operation negotiations, expenses relating to expiring leases and credit losses.The turnover for January 2021 was approximately MEUR 7.8, which is roughly 53 per cent of the turnover for the corresponding period the previous year. The turnover was generated by restaurant operations in Finland, with the international business operations being at a complete standstill. Operating cash flow was approximately MEUR -1.8 in January.The Group recognised approximately MEUR 12.5 in financial support from the Finnish, Danish and Norwegian governments for the period 1 January–31 December 2020. Reductions in rent totalled approximately MEUR 3.5 in January–December 2020, with most of this total falling in April–May 2020.In a normal operating environment in the restaurant business, most of the profits are made during the second half of the year due to the seasonal nature of the business.REVIEW BY THE CEO AKU VIKSTRÖMFor NoHo Partners, the year 2020 was ravaged by the COVID-19-pandemic. The year had a record-hitting start, but the momentum came to a halt when the pandemic came into full force, and after the official restrictions came into force, consumer demand collapsed. Apart from a momentary phase of recovery in the summer, the year was spent adapting operations, looking after the safety of the staff and customers, and safeguarding cash flow. The exacerbation of the epidemic in Finland, Norway and Denmark towards the end of the year led to a complete freezing of the biggest season of the year.Amidst the COVID-19 crisis, the company has focused on safeguarding its future by seeing to its personnel and negotiating sustainable financing solutions, allowing it to secure its competitiveness once the market recovers. The new five-year financing programme that will secure the company’s liquidity and rebuilding programme for 2021 can be considered to be a significant achievement from the point of view of the company’s future. Together with financial institutions, the company is committed to a repayment programme that makes it possible to implement the company’s growth plan and lightening its debt burden in a balanced manner. The aim is for the radio of net debt to operating cash flow, adjusted for IFRS 16 debt, to be under 3 by the end of 2023.The outlook for 2021 remains uncertain. According to our current estimate, market restrictions will be relaxed and demand will begin to recover during the summer. Following the recovery, we will begin to implement our rebuilding programme with determination. As the summer of 2020 showed, customer demand returns quickly when the market normalises and terraces open. We have prepared for recovery from the COVID-19 shock thoroughly by trimming costs and polishing our operational activities under difficult conditions. This, and the company’s restaurant portfolio which was enhanced even further during the crisis and the balance lightened by the complete depreciation programme, will guarantee a solid foundation for improving the company’s structural profitability.In spite of the extremely difficult year, my faith in the ability of our team to survive this crisis is unwavering. The months ahead are still challenging and will also require patience from our stakeholders. Nevertheless, we are looking into the future with confident minds and will publish our new strategy and its goals during the first half of 2021. Our company’s aim is to be the leading restaurant company in the Nordic countries, and its strategy will be profitable growth in increasingly select markets and customer segments.Aku Vikström
CEOOUTLOOKThe MarketThe COVID-19 pandemic has had a serious impact on the company’s market and the restaurant industry as a whole, and the sudden change in the market has considerably affected the company’s operations starting from March 2020. Due to the acceleration of the pandemic and the resulting restrictions on restaurants, the Group will continue to operate in a restricted business environment in early 2021.Profit guidanceAt this time, the company will not provide its turnover and profitability forecast for 2021 due to the uncertain market situation. The financial impact of the pandemic on the Group’s business and outlook cannot be fully determined at present.The profit guidance for 2021 will be updated when visibility is improved and the overall impact of the COVID-19 pandemic on the operating environment and the Group’s business can be assessed more accurately. The restrictions on business activities, potential changes to the restrictions and the global economic uncertainty will have a significant impact on the Group’s turnover and financial result for early 2021.The company will also provide monthly reports on the development of its business during these exceptional circumstances.Financial targetsThe Group will specify the long-term financial targets for the strategy period 2021–2023 during the first half of 2021.