Inwido AB · OMXSTO:INWI
Inwido AB — Q4 2016 Earnings Presentation
21 slides from Inwido AB's earnings presentation, Feb 2, 2017
Slide 1: Year-end report Jan-Dec 2016
Year-end report Jan-Dec 2016 2 February 2017 1
Slide 2: Q4 market development unchanged
Q4 market development unchanged More or less the same as last quarter • Relatively stable demand in general • Many markets driven by new built • Mixed Nordic renovation markets • No clear Brexit-effects • Consumer confidence stable or slightly positive • Swedish consumers more hesitant though • High
Slide 3: Q4 2016 – Another record quarter
Q4 2016 – Another record quarter A very good development • Good profitability, best quarter ever and record margins • Efficiency on best level ever with good cost control • Growth in both sales and order intake – Sweden and "old UK business" the exceptions • Acquisitions continue to contribute in a
Slide 4: Full year 2016 satisfying
Full year 2016 satisfying Improvements and volatility - characteristics of the year • Good development in key figures: • Sales increase of 9% to SEK 5 672 million • Operating EBITA margin 11.9% (11.3) • Order backlog +16% • Five record months and two of the worst = volatility • Best gross margin and
Slide 5: Q4 Sweden is regaining strength
Q4 Sweden is regaining strength Subdued development in consumer sales • Consumer sales on lower levels last six months – Hesitant consumers affected the renovation market – Comparability with last year difficult due to ROT and amortization changes • Especially good development within house manufactu
Slide 6: Q4 Finland positive towards year end
Q4 Finland positive towards year end Good development • Stable market - improved consumer confidence • Good growth within construction, consumer market picking up • Acquisitions continue to perform well • Total sales: +29% • Total order backlog per end of quarter: +49% Net sales Operating EBITA 500
Slide 7: Q4 Denmark posted another record year
Q4 Denmark posted another record year Good growth and profitability • Good growth in consumer channels • Further improved profitability due to better product and customer mix • Acquisition performing well • Total sales: +27% • Total order backlog per end of quarter: -8%, due to strategic direction a
Slide 8: Q4 EBE profitability to be improved
Q4 EBE profitability to be improved e-Commerce enters two new markets • Most markets delivers according to plan – "old UK" the negative exception • New acquisition delivering well • e-Commerce launched in UK and Ireland and grew 12% in 2016 • Total sales: +49% • Total order backlog per end of quarte
Slide 9: Q4 Norway improves substantially
Q4 Norway improves substantially Continued improvement in operating EBITA • Consumer confidence slightly improved • Increase in market shares during H2 • Continued focus on sales and market initiatives - product launches • Total sales: +40% • Total order backlog per end of quarter: +26% Net sales Op
Slide 10: We are optimistic about 2017
We are optimistic about 2017 Stable demand and high efficiency good platform • The underlying need for our products is good • After a volatile year - more stability is noted… • The political and financial uncertainties are still there – We are prepared • Inwido develops according to plan so far • We
Slide 11: Our Management Ambition to 2020
Our Management Ambition to 2020 Increase operating EBITA >10% on average annually to: > SEK 1 billion 11
Slide 12: Strategy for profitable growth to 2020
Strategy for profitable growth to 2020 1 Capitalizing on strong Nordic position 2 Organic and acquisition based growth in Europe 3 Develop new products for the smart home 4 High cost efficiency and flexibility in supply chain 5 Highly decentralized structure with accountable people
Slide 13: Most important focus areas 2017
Most important focus areas 2017 Overall plan unchanged 1. Back to growth in Sweden 2. Evaluating several potential acquisitions 3. Many product launches in the pipe 4. Investments and streamlining for efficiency gains 5. Empowering and developing local teams 13
Slide 14: Q4 and full year 2016 in numbers
Q4 and full year 2016 in numbers
Slide 15: Best quarter and year earnings ever
Best quarter and year earnings ever Q4 Full-year SEKm 2016 2015 Change 2016 2015 Change Net sales 1,709 1,470 16% 5,672 5,220 9% Gross margin, % 28.8 20.5 - 28.0 24.6 - Operating EBITA 227 185 22% 673 589 14% Operating EBITA margin, % 13.3 12.6 - 11.9 11.3 - EBITA 223 76 193% 664 480 38% EBITA margi
Slide 16: Q4 - Order intake on stable level
Q4 - Order intake on stable level SALES AND ORDER INTAKE Q4 (MSEK) 1 900 1 709 1 700 1 500 1 470 1 421 1 407 1 300 1 247 1 228 1 100 900 700 500 Sales in total + 16% Order intake in total + 15% Aquisitions 2014 2015 2016 16
Slide 17: Q4 – Healthy order backlog
Q4 – Healthy order backlog ORDER BACKLOG (MSEK) 1 200 1 000 800 1421 815 702 600 657 505 490 400 200 0 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 17
Slide 18: Q4 - good margin development
Q4 - good margin development OP EBITA (MSEK) and OP EBITA MARGIN (%) 800 13,3% 14,0% 12,4% 12,6% 11,9% 700 11,3% 673 12,0% 10,2% 589 600 10,0% 502 500 8,0% 400 6,0% 300 4,0% 227 176 185 200 2,0% 100 0,0% October - December January - December 2014 2015 2016 18
Slide 19: EBITA margin more or less on target level
EBITA margin more or less on target level SEKm % 6 000 11,9 13,0 11,4 11,8 11,6 11,2 11,3 12,0 5 000 10,8 10,2 10,4 11,0 4 000 9,1 9,5 10,0 8,4 9,0 3 000 8,0 2 000 7,0 6,0 1 000 5,0 0 4,0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Net sales LTM (SEKm) Operating EBITA mar
Slide 20: Net debt vs. EBITDA on healthy level <2.5x
Net debt vs. EBITDA on healthy level <2.5x SEKm 2 000 3,0 2,5 1 500 2,0 1 000 1,5 1,0 500 0,5 0 0,0 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 16 PF* NetDebt (SEKm) Net Debt vs OP EBITDA * Pro Forma OP EBITDA including the full year effect from acquisitions in 2016 (L
Slide 21: Thank you! Questions?
Thank you! Questions? 21