Inwido Ab · OMXSTO:INWI
Inwido Ab — Investor Day (March 2012)
33 slides from Inwido Ab's investor day presentation, Mar 15, 2012
Slide 1: Inwido – Great Windows & Doors
INWIDO Great Windows & Doors
Slide 2: Inwido – on a mission
Inwido – on a mission: From To Production orientation Consumer focus Construction material Home living Invisibility Visibility Improving people’s well-being 1
Slide 3: The leading window and door group in Northern Europe
The leading window and door group in Northern Europe » No. 1 or 2 position in all Nordic markets » Sales in 2011: MSEK 5 050 » Employees: 3 500 » Production sites: 30 » Head office: Malmö, Sweden » Holding of Ratos since december 2004 3
Slide 4: New team for decentralized responsibilities
New team for decentralized Espen Hoff Senior Vice President, Norway responsibilities Håkan Jeppsson Born: 1965 Employed since: 2012 President and Chief Executive Officer Born: 1961 Employed since: 2009 Mads Lena Wessner Jonas Netterström Peter Welin Olle Marköö Anders Isaksson Jonna Opitz Timo Luhta
Slide 5: Foundation of Inwido to date
Foundation of Inwido to date 1996‐1999 2000‐2004 2005‐2008 2009‐2011 How it all began Swedish expansion Nordic expansion One Group • Merger of • Add‐on aquisitions • Acquiring leading local • Consolidation Myresjöfönster and • Focus on brand names companies • Revitalizing strategy Elitfönster and pr
Slide 6: Fast acquisition based growth has eased off
Fast acquisition based growth has eased off Sales and EBITA development 6
Slide 7: Window volumes far from top level
Window volumes far from top level.... Market volume index 110 105 100 95 INDEX 90 85 80 75 70 2007 2008 2009 2010 2011 Finland Sweden Denmark Norway 7
Slide 8: Profit development compared to other construction material suppliers positive
Profit development compared to other construction material suppliers in Europe positive 8
Slide 9: Strong cash flow has reduced net debt
Strong cash flow has reduced net debt 4,000 3,500 3,000 Dividend SEK 301m 2,500 MSEK 2,000 1,500 1,000 500 0 0712 0804 0808 0811 0903 0906 0909 0912 1003 1006 1009 1012 1103 1106 1109 1112 » Strong underlying performance combined with efficiency measures » Less working capital tied up 9
Slide 10: Inwido's cash conversion rate
Inwido´s cash conversion rate (EBITDA + change in WC – net capex) / EBIT 10
Slide 11: Products and services
Products and services
Slide 12: A few out of 2.9 billion tailormade varieties
A few out of 2.9 billion tailormade varieties... 12
Slide 13: Doors, sliding doors, services and accessories important parts of the offer
Doors, sliding doors, services and accessories important parts of the offer 13
Slide 14: Segments and market position
Segments and market position
Slide 15: Consumer the dominating segment
Consumer the dominating segment Market segments Channels Products & Services Direct 22% Consumer Middleman 70% 12% Retail 36% Construction 18% Industry 30% House factories 12% 15
Slide 16: Inwido takes 45% of all profits in the Nordics
Inwido takes 45% of all profits in the Nordics Sales growth vs. EBIT margins 15 Average EBITA margin (%) 10 Inwido NorDan 2005-2010 5 Jeld-Wen Dovista 0 -10 -5 0 5 10 15 20 25 -5 Fenestra -10 Average yearly sales growth (%) 2005-2010 The size of the circle reflects the relative size of sales in 2010
Slide 17: Leading position in the Nordic window markets
Leading position in the Nordic window markets Inwido Total market value (EUR) Wood share Market share Market position 575m 92% 39% No. 1 590m 83% 12% No. 2 405m 90% 8% No. 4 290m 100% 32% No. 1 » Each market dominated by 2-5 players » Wood and wood/alu dominates the Nordic markets 17
Slide 18: Challenger position in fragmented European window markets
Challenger position in fragmented European window markets Inwido Total market value (EUR) Wood share Market share Market position 1 950m 22% <1% No. 5 in wood 100m 18% ~ 3% No. 3 in wood 1100m 20% ~1% No. 3 in wood 4 050m 10% <1% No. 3 in wood » Very fragmented markets without any dominating player
Slide 19: Focus going forward
Focus going forward
Slide 20: To reach our challenging financial targets
To reach our challenging financial targets » EBITA margin >12% sustainable » Turnover of SEK 10 billion with » Profitable aquisitions » 8% organic growth yearly » ROOC >20% 20
Slide 21: With a consumer company position
With a consumer company position » Higher profitiablity » Better stability (than new built/construction) » Sales and marketing driven culture impacts the whole company positively » Closer to the end user demands and needs 21
Slide 22: Business drivers
Business drivers » Growth in gross domestic product (GDP) and households’ real disposable income » Consumer confidence » Age and condition of housing stock » House prices » Level of home ownership » Interest rates » Public subsidiaries but ... 22
Slide 23: Subsidies not impacting to the extent you might think
Subsidies not impacting to the extent you might think Are you planning on doing a major renovation regardless of whether you get government subsidies or not (ex: tax reductions)? NOR 74% FIN 82% Yes DEN 73% SWE 69% 0% 20% 40% 60% 80% 100% 23
Slide 24: Consumer trends impacting us
Consumer trends impacting us » The ”home trend” with nesting for togetherness » Downscaling and rurbanism » Light and landscaping windows » The return of craftmanship and tradition » Energy is the new consumer currency » Smartifying everything 24
Slide 25: Strategic initiatives 2012
Strategic initiatives 2012
Slide 26: Prioritized strategic initiatives
Prioritized strategic initiatives 1. Back to growth mode 2. Improve organizational efficiency - Structure and processes - Competence and corporate values 3. New products and concepts - R&D-organisation - Automatic and digital solutions - Energy/green - Accessories 26
Slide 27: Prioritized strategic initiatives (continued)
Prioritized strategic initiatives 4. Restructuring operations - Platform strategy - Automatisation - Fewer factories and cost saving program 5. Channel mix shift - Internet - Using market and consumer insights - Branding towards the consumer 27
Slide 28: Conclusions
Conclusions » Growth opportunities » Consumer focus » Restructuring ongoing » One Group wanted 28
Slide 29: Improve people's well-being
Improve people’s well-being
Slide 30: Inwido – Thomas Hofvenstam, March 2012
Inwido Thomas Hofvenstam 15 March 2012 1
Slide 31: Ratos's investment in Inwido
Ratos’s investment in Inwido Elitfönster acquired in 2005 31 add-on acquisitions Total (net) investment - 1 120 MSEK (book value 1 983 MSEK) - Ratos owns 96 % Ratos team - Thomas Hofvenstam (responsible for holding) - Leif Johansson - Henrik Lundh 2
Slide 32: Investment attractions
Investment attractions Attractive market drivers Solid positions in consolidated Nordic markets Resilient business model High cash conversion Interesting development opportunities Devoted management team 3
Slide 33: Key value creation opportunities going forward
Key value creation opportunities going forward Margin opportunity - Full operational potential - Improvement of underperforming businesses Growth potential - Product innovation and market development - Grow from strong Nordic platform - European opportunity, organically and M&A Market demand w