Inwido AB · OMXSTO:INWI
Inwido AB — Q2 2021 Earnings Presentation
21 slides from Inwido AB's earnings presentation, July 2021
Slide 1: Q2 Report January – June 2021
Q2 Report January – June 2021 Follow our story
Slide 2: Topics to cover
2 Topics to cover Från Mid Cap Handelsbanken ▪ This is Inwido ▪ Q2 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 7.2 billion LTM Q2 2021 ▪ Operating EBITA margin of 12.1% LTM Q2 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 shareholder value ▪ Five elements that are the basis for Inwido’s value creation model Efficiency Value creating ▪ Ensures that we deliver long term cost efficient M&A / invest for synergies from sourcing and customer and employee
Slide 5: Q2 highlights – a strong quarter
5 Q2 highlights – a strong quarter ▪ Sales above SEK 2 billion for the first time in a single quarter ▪ 19% organic sales growth ▪ All time high operating EBITA in a quarter ▪ Strong order intake and highest ever order backlog ▪ 15% organic growth in e-Commerce ▪ Ninth consecutive quarter with stren
Slide 6: Q2 in numbers
6 Q2 in numbers ▪ Sales growth to SEK 2,009 million (1,719) ▪ Operating EBITA SEK 267 million (202) ▪ Operating EBITA margin 13.3% (11.8%) ▪ Order intake +32% (+27% adjusted for acquisition) ▪ Order backlog at end of quarter increased by 61% to SEK 2,029 million (+55% adjusted for acquisition) ▪ Net
Slide 7: Development first six months 2021
7 Development first six months 2021 ▪ Sales growth to SEK 3,653 million (3,167), organically +18% ▪ Operating EBITA growth to SEK 388 million (251) with operating EBITA margin 10.6% (7.9%) ▪ Acquisition of Metallityö Välimäki Oy in Finland ▪ EPS growth to SEK 5.00 (2.56)
Slide 8: Q2 – Business Area South
8 Net sales Q2 – Business Area South 900 4 000 750 600 3 000 450 High growth rate and further strengthened margins 300 2 000 External net sales split between 150 market segments, LTM ▪ e-Commerce sales +15% organically 0 1 000 8% SEKm Jul-Sep Oct-Dec Jan-Mar Apr-Jun SEKm ▪ Order intake +7% 2020 2021
Slide 9: Q2 – Business Area North
9 Q2 – Business Area North Net sales 1 200 5 000 1 000 4 000 800 600 3 000 Continued margin improvement and good sales 400 2 000 growth External net sales split between 200 market segments, LTM 0 1 000 ▪ Sales growth fueled largely by strengthened SEKm Jul-Sep Oct-Dec Jan-Mar Apr-Jun SEKm positions
Slide 10: M&A status
10 M&A status Our expertise & focus Products and technology From good to great ▪ Overall increased activity level ▪ Relatively easier to make progress in smaller transactions whereas somewhat challenging to carry out larger transaction processes during Covid-19 Clear In market geographical and/or ▪
Slide 11: Market outlook
11 Market outlook ▪ Entering Q3 with a strong order backlog ▪ Continued healthy activity levels in the consumer and industrial markets ▪ Continued inflationary pressure on input materials being offset by price increases taken to the market ▪ Some mid-term uncertainty as society returns to “new norma
Slide 12: Short term priorities
12 Short term priorities Från Mid Cap Handelsbanken 1. Keeping a close eye on input material inflation for swift and resolute price adjustments 2. Maintain customer focused strong execution in a dynamic environment 3. Value generating investments in growth initiatives 4. Continued increased M&A effo
Slide 13: Q2 in numbers
inwido Q2 in nUMbers
Slide 14: Operating EBITA margin above 12% LTM
14 Operating EBITA margin above 12% LTM Q2 Q1-Q2 SEKm 2021 2020 Change 2021 2020 Change LTM 2020 Net sales 2 009 1 719 17% 3 653 3 167 15% 7 167 6 681 Gross margin, % 27.1 26.9 - 25.5 24.6 - 26.3 26.0 Operating EBITA 267 202 32% 388 251 55% 866 729 Operating EBITA margin, % 13.3 11.8 - 10.6 7.9 - 12
Slide 15: Sales above SEK 2bn in Q2 and high order intake growth
15 Sales above SEK 2bn in Q2 and high order intake growth Sales and Order intake Q2 (SEKm) 3 000 2 567 2 500 2 009 1 950 1 916 2 000 1 719 1 710 1 500 1 000 500 2019 2020 2021 Reported sales + 17% Reported order intake + 32% Acquired sales/order intake 2021
Slide 16: Order backlog above SEK 2bn, +61%
16 Order backlog above SEK 2bn, +61% Order backlog (SEKm) 2 500 2 029 2 000 1 500 1 000 1 956 1 169 1 175 1 262 1 127 500 0 Order backlog Q2 17 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 Acquired order backlog 2021
Slide 17: Improved margin nine quarters in a row
17 Improved margin nine quarters in a row Op EBITA (SEKm) and Op EBITA margin (%) in Q2 and first six months 13.3% 14% 700 11.8% 10.9% 12% 600 10.6% 10% 500 7.9% 7.3% 8% 400 388 6% 300 267 200 251 4% 232 187 202 100 2% 0 0% 2019 2020 2021 April - June January - June
Slide 18: Net Debt vs. Op EBITDA has improved from x1.7 to x0.9
18 Net Debt vs. Op EBITDA has improved from x1.7 to x0.9* Increased Net Debt in H1 due to normal seasonality and dividend 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, ex
Slide 19: CAGR of 6% since 2014 (the IPO)
19 CAGR of 6% since 2014 (the IPO) Sales growth of 46% since 2014, OP EBITA growth of 73% Sales (SEKm) and OP EBITA (%) 8 000 14% 11.9% 12.1% 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 7 167 0 0% 2014 2015
Slide 20: Summary Q2 and first six months 2021
20 Summary Q2 and first six months 2021 ▪ A strong start to the year in an overall good consumer market ▪ Healthy sales and order intake growth as well as strengthened margins in both Business Areas ▪ M&A progress in terms of acquisition of Metallityö Välimäki Oy with M&A activity level increasing ▪
Slide 21: Questions?
21 Questions? Upcoming events Q3 report – October 26 Capital Markets Day – December 9 Year-end report 2021 – February 8 Join our journey on LinkedIn