Inwido Ab · OMXSTO:INWI
Inwido Ab — Q3 2024 Earnings Presentation
25 slides from Inwido Ab's earnings presentation, Oct 22, 2024
Slide 1: Interim report January – September 2024
Interim report January – September 2024 October 22, 2024 Fredrik Meuller, President & CEO Peter Welin, CFO
Slide 2: On an exciting journey to double turnover by 2030
2 On an exciting journey to 35 business units with 4,200 employees in 12 countries double turnover by 2030 Europe’s leading window group Established in 2004 – publicly listed since 2014 Sales SEK 9 billion – Operating EBITA margin 11% Improving indoor life via unique windows and doors Attrac
Slide 3: Order intake continues up in challenging markets
3 Order intake continues up in challenging markets Q3 2024 highlights Order intake and order backlog increased for the second consecutive quarter Operating EBITA margin increased as a result of improved operational efficiency Additional market share gains as some peers struggle Sustainabilit
Slide 4: Improved performance despite market headwind
4 Improved performance despite market headwind Q3 2024 key financials Order intake Op EBITA +3% Net sales SEK 304 million (308) Net debt vs Op EBITDA SEK 2,273 million (2,339) 1.2x Order backlog Op EBITA margin (0.9x excluding IFRS 16) SEK 2,640 million (2,428) 13.4% (13.2)
Slide 5: Conditions vary across geographies and segments
5 Conditions vary across geographies and segments Operating context per Business Area Scandinavia e-Commerce Stable consumer market in Denmark Continued positive development in New build in Sweden challenging, all markets but renovation showing early signs Strategic investments in marketing
Slide 6: Special achievements during the third quarter
6 Special achievements during the third quarter Sun protection solution provider Artic- Jonna Opitz permanent in the role as Investments in Sustainability – switching to Kaihdin acquired in Finland in September EVP Western Europe water-based paint in several business units
Slide 7: Solid progress made on key strategic priorities
7 Solid progress made on key strategic priorities 9 months YTD 2024 highlights New President & CEO and new board member Several attractive new product launches with focus on design and energy efficiency Climate goals validated by Science Based Targets initiative (SBTi) Acquisition of Artic-K
Slide 8: Performance gradually improving in a soft market
8 Performance gradually improving in a soft market 9 months YTD 2024 key financials Op EBITA Net sales SEK 657 million (737) ROOC EPS SEK 6,415 million (6,697) 13.1% (16.2) SEK 6.12 (8.52) Op EBITA margin 10.2% (11.0)
Slide 9: Much more than just windows and doors
9 Much more than just windows and doors Inwido CEO’s personal experience An impressively seamless process… Dialogue with carpenter Ordering via reseller On-time delivery Speedy installation …with a hugely positive impact on quality of life! Inflow of light Noise reduction Energy saving
Slide 10: Financials Q3 and first nine months 2024
Financials Q3 and first nine months 2024
Slide 11: Improved Op EBITA margin in the quarter
11 Improved Op EBITA margin in the quarter Organic sales decline of 1 percent and an EPS slightly below LY Q3 Q1-Q3 SEKm 2024 2023 Change 2024 2023 Change LTM 2312 Net sales 2,273 2,339 -3% 6,415 6,697 -4% 8,688 8,970 Gross Profit 616 625 -1% 1,622 1,721 -6% 2,217 2,298 Gross margin, % 27.1 26.7 - 2
Slide 12: Organic sales decline of 1 percent, equal to SEK -29m
12 Organic sales decline of 1 percent, equal to SEK -29m Based on actual sales 2024 compared to Pro Forma 2023 Sales in Q3 (SEKm) from 2023 to 2024 3,000 +0% -2% -1% 2,500 +8 -46 -29 2,000 1,500 1,000 500 2,339 2,347 2,302 2,273 0 Sales Q3 2023 AC Sales acquired Pro Forma Q3 Currency effects Pro For
Slide 13: Result improvements in e-Com and Western Europe
13 Result improvements in e-Com and Western Europe Still challenging in Eastern Europe with sales decline of 15 percent Sales in Q3, SEKm, from 2023 to 2024 OP EBITA in Q3, SEKm, from 2023 to 2024 2500 -46 350 -87 50 -2 19 -2 -20 0 2 16 300 2000 250 1500 200 150 1000 100 500 50 2,339 2,273 308 304 0
Slide 14: Margin improved compared to last two years
14 Margin improved compared to last two years Eastern Europe has been compensated by the other segments Sales and Op EBITA % in Q3 for 2019 - 2024 3,000 15.0% 14.5% 14.4% 14.5% 2,500 14.0% 2,000 13.4% 13.5% 13.2% 1,500 13.0% 12.5% 12.5% 1,000 12.2% 12.0% 500 11.5% 1,665 1,716 1,897 2,386 2,339 2,273
Slide 15: Cash flow from operating activities slightly above LY
15 Cash flow from operating activities slightly above LY Increased capex to compensate lower levels during the pandemic Q3 Acquisitions of tangible and intangible assets in SEKm and % of sales SEKm 2024 2023 Change 400 5.0% 4.3% Cash flow from operating activities 335.7 330.0 2% 4.5% 350 Changes in
Slide 16: Reduced Net Debt in Q3 – on the same level as LY
16 Reduced Net Debt in Q3 – on the same level as LY Improved Net Debt vs EBITDA vs Q2 – headroom for further growth Net Debt SEKm, Net Debt vs Op EBITDA 2,000 2.5 1,800 Net Debt / Op EBITDA incl IFRS 16: 1.2x (1.1) 1,600 2.0 Net Debt / Op EBITDA excl IFRS 16: 0.9x (0.8) 1,400 1,200 1.5 1,000 800 1.0
Slide 17: ROOC remained at 13.1 percent
17 ROOC remained at 13.1 percent Reduction since peak 2022 due to lower volumes and results Average Operating Capital (SEKm), and ROOC (%) 7,300 18.3% 20% 17.8% 17.9% 17.9% 17.6% 16.4% 16.9% 16.8% 16.2% 18% 6,900 15.7% 15.4% 14.3% 16% 13.7% 6,500 12.6% 13.1% 13.1% 14% 11.5% 12% 6,100 10% 5,700 8% 5,
Slide 18: Improved order intake and backlog vs LY – like for like
18 Improved order intake and backlog vs LY – like for like Order intake growth of 3 percent in Q3 Order intake in Q3, SEKm, 2019 - 2024 Order backlog in Q3, SEKm, 2019 - 2024 2,500 3,000 5 11 2,500 2,000 2,000 1,500 1,500 1,000 1,000 500 500 1,644 1,762 2,151 2,119 2,188 2,254 1,107 1,308 2,283 2,42
Slide 19: Q3 Scandinavia
19 Q3 Scandinavia 6 000 Sales SEKm and Op EBITA %, LTM 16% Improved margin and increased 5 000 14% order backlog 4 000 12% 10% 3 000 8% 6% 2 000 4% Sales -4%, to SEK 1,014 million (1,060) 1 000 2% Operating EBITA margin 16.5% (16.0) 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 2022 2022 2022 2023 2023 2023 2
Slide 20: Q3 Eastern Europe
20 Q3 Eastern Europe 3 000 Sales SEKm and Op EBITA %, LTM 14% Improved order intake in a weak 2 500 12% market 2 000 10% 8% 1 500 6% 1 000 4% Margin improvement compared to H1 2024 and 500 2% above Q3 2021 – 2022 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Sales -15%, to SEK 473 million (559) 2022 2022 2022
Slide 21: Q3 e-Commerce
21 Q3 e-Commerce Sales SEKm and Op EBITA %, LTM 1 200 8% Higher order intake and improved 1 000 7% margin 800 6% 5% 600 4% 3% 400 Improved margin despite increased market 200 2% 1% investments 0 0% Sales 7%, to SEK 286 million (267) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 2022 2022 2022 2023 2023 2023 2023 2
Slide 22: Q3 Western Europe
22 Q3 Western Europe Sales SEKm and Op EBITA %, LTM 2 000 14% Positive development for all larger 12% business units 1 600 10% 1 200 8% 800 6% 4% The profitable growth continued in the third quarter 400 2% Sales +11%, to SEK 506 million (456) 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Operating EBITA mar
Slide 23: Well positioned towards future profitable growth
23 Well positioned towards future profitable growth Main driving forces External EU’s ‘Green Deal’ – transition to energy-efficient housing across all member countries Normalization of demand in renovation Pent-up needs within new build Internal Product development Leverage investments in
Slide 24: On an exciting journey to double turnover by 2030
24 On an exciting journey to double turnover by 2030 Summary and outlook Order intake and order backlog increased for the second consecutive quarter Operating EBITA margin increased as a result of improved operational efficiency Additional market share gains as some peers struggle High M&A a
Slide 25: Upcoming events
Upcoming events December 11 – Capital Markets Day February 4 – Q4 and year-end report 2024 April 24 – Q1 report 2025 Join our journey on LinkedIn