Inwido AB · OMXSTO:INWI
Inwido AB — Q3 2021 Earnings Presentation
21 slides from Inwido AB's earnings presentation, October 2021
Slide 1: Q3 Report January – September 2021
Q3 Report January – September 2021 Follow our story
Slide 2: Topics to cover
2 Topics to cover Från Mid Cap Handelsbanken ▪ This is Inwido ▪ Q3 highlights and performance ▪ M&A status ▪ Market outlook and priorities ▪ Financials ▪ Summary and Q&A
Slide 3: This is Inwido
3 Clear market leader in the Nordic region This is Inwido ▪ Leading window group in Europe ▪ Clear market leader in the Nordic region with strong presence in the UK & Ireland ▪ Net sales of SEK 7.3 billion LTM Q3 2021 ▪ Operating EBITA margin of 12.2% LTM Q3 2021 ▪ Approx. 4,600 employees Production
Slide 4: A clear and proven value creation model
4 A clear and proven value creation model Our virtuous cycle to drive sustainable shareholder value ▪ Five elements that are the basis for Inwido’s value creation model ▪ Ensures that we deliver long-term cost-efficient customer and employee value, in a sustainable way, and hence drives shareholder
Slide 5: Q3 highlights - a strong quarter
5 Q3 highlights - a strong quarter ▪ Tenth consecutive quarter with strengthened margins and sixth quarter in a row with organic growth ▪ Favorable markets in general – both consumer and industry – continued strong order intake ▪ High price pressure on input materials and transportation ▪ Improvemen
Slide 6: Q3 in numbers
6 Q3 in numbers ▪ Sales growth of 11% to SEK 1,897 million (1,716), organically +10% ▪ Highest operating EBITA ever in a single quarter, SEK 275 million (247) ▪ Operating EBITA margin 14.5% (14.4%) ▪ Strong order intake of +22% (+20% adjusted for acquisition) ▪ Highest order backlog ever – increase
Slide 7: Development first nine months 2021
7 Development first nine months 2021 ▪ Sales growth of 14% to SEK 5,550 million (4,882), organically +15% ▪ Operating EBITA growth to SEK 663 million (498) with an operating EBITA margin of 11.9% (10.2%) ▪ EPS growth to SEK 8.57 (5.61)
Slide 8: Q3 – Business Area South
8 Q3 – Business Area South Net sales 900 4 000 750 600 3 000 Continued profitable growth 450 300 2 000 ▪ Larger Danish units continue to grow sales and 150 External net sales split between margins in a favourable consumer market market segments, LTM 0 SEKm Oct-Dec Jan-Mar Apr-Jun Jul-Sep 1 000 SEKm
Slide 9: Q3 – Business Area North
9 Q3 – Business Area North Net sales 1 200 5 000 1 000 4 000 800 Continued growth and a strong order backlog 600 3 000 External net sales split between 400 ▪ Sales growth fueled by strengthened positions on market segments, LTM 200 2 000 positive consumer and industry markets 0 1 000 SEKm Oct-Dec Ja
Slide 10: M&A status
10 M&A status Our expertise & focus Products and From good ▪ Overall higher activity level and increased technology to great opportunities as markets open-up and travel restrictions are lifted ▪ With a very strong balance sheet, acquisition dialogues have been accelerated during 2021 Clear In market
Slide 11: Market outlook
11 Market outlook ▪ Entering last quarter of 2021 with a strong order backlog and strengthened positions ▪ Near term healthy activity levels on both consumer and industry markets ▪ Hard to predict if/when input material inflation, transportation costs as well as lifted Covid restrictions will impact
Slide 12: Short term priorities
12 Short term priorities Från Mid Cap Handelsbanken 1. Maintain a close eye on input material inflation for swift and resolute price adjustments 2. Keep customer focused strong execution in a dynamic environment 3. Continued increased M&A efforts 4. Value generating investments in growth initiatives
Slide 13: Q3 in numbers
inwido Q3 in numbers
Slide 14: Highest operating EBITA margin ever
14 Highest operating EBITA margin ever Q3 Q1-Q3 SEKm 2021 2020 Change 2021 2020 Change LTM 2020 Net sales 1 897 1 716 11% 5 550 4 882 14% 7 349 6 681 Gross margin, % 27.8 27.6 - 26.3 25.7 - 26.4 26.0 Operating EBITA 275 247 12% 663 498 33% 894 729 Operating EBITA margin, % 14.5 14.4 - 11.9 10.2 - 12
Slide 15: Continued strong order intake, above SEK 2bn in quarter
15 Continued strong order intake, above SEK 2bn in quarter Sales and order intake Q3 (SEKm) 2 300 2 151 2 100 1 900 1 897 1 762 1 665 1 716 1 700 1 644 1 500 1 300 1 100 900 700 2019 2020 2021 500 Reported sales + 11% Reported order intake + 22% Acquired sales/order intake 2021
Slide 16: Order backlog on record level +75% vs Q3 2020
16 Order backlog on record level +75% vs Q3 2020 Order backlog (SEKm) 2 500 2 283 2 000 1 500 2 203 1 000 1 308 1 194 1 171 1 107 500 Order backlog 0 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Acquired order backlog 2021
Slide 17: Improved margin ten quarters in a row
17 Improved margin ten quarters in a row Op EBITA (SEKm) and Op EBITA margin (%) in Q3 and first nine months 16% 14.4% 14.5% 700 14% 12.2% 663 600 11.9% 12% 10.2% 500 9.0% 498 10% 400 435 8% 300 6% 275 200 247 4% 203 100 2% 0 0% 2019 2020 2021 July - September January - September
Slide 18: Net Debt vs. Op EBITDA has improved from x1.2 to x0.7
18 Net Debt vs. Op EBITDA has improved from x1.2 to x0.7* IFRS 16 Debt of SEK 343m Net Debt, Net Debt vs Op EBITDA SEKm 3 000 3.5 3.0 2 500 2.5 2 000 2.0 1 500 1.5 1 000 1.0 500 0.5 Net Debt, excl IFRS 16, (SEKm) IFRS 16 Debt (SEKm) 0 0.0 Net Debt vs EBITDA, excl IFRS 16 Net Debt vs EBITDA, incl IFR
Slide 19: CAGR of 6% since 2014 (the IPO)
19 CAGR of 6% since 2014 (the IPO) Sales growth of 49% since 2014, Op EBITA growth of 78% Sales (SEKm) and Op EBITA (%) 8 000 14% 12.2% 11.9% 7 000 11.3% 12% 10.9% 10.2% 10.2% 6 000 9.9% 9.7% 10% 5 000 8% 4 000 6% 3 000 4% 2 000 1 000 2% 4 916 5 220 5 672 6 371 6 667 6 631 6 681 7 349 0 0% 2014 2015
Slide 20: Summary Q3 and first nine months 2021
20 Summary Q3 and first nine months 2021 ▪ Strong sales and order intake growth ▪ Further improved margins ▪ Strengthened market positions in all core markets ▪ M&A activity level increasing ▪ Ongoing investments for future profitable growth
Slide 21: Questions? Welcome to 2021 Capital Markets Day
21 Welcome to 2021 Capital Markets Day Questions? Upcoming events Capital Markets Day, December 9 in Stockholm and via webcast (register at inwido.com, latest Dec 1) Year-end report 2021 – February 8 Join our journey on LinkedIn