Inwido Ab · OMXSTO:INWI
Inwido Ab — Investor Day (2021)
71 slides from Inwido Ab's investor day presentation, 2021
Slide 1: Inwido Capital Markets Day 2021
Inwido Capital Markets day 2021 Tips & house rules during the meeting ▪ You can download the presentation from inwido.com ▪ Presentations will start at 08:30 CET – program ends 11:30 ▪ To ask a question during Q&A ▪ On site Stockholm – raise hand ▪ On webcast via Financial Hearings Participants in S
Slide 2: Capital Markets Day agenda
2 Capital Markets Day agenda 08:30 CMD 2021 opening 08:35 Inwido’s growth journey Henrik Hjalmarsson For a sustainable Inwido Lena Wessner 09:45 Break 10:05 Panel talk ”from small to big” Jonna Opitz & Antti Vuonokari The numbers that matter Peter Welin 11:05 Q&A and close of program Inwido Group Mg
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Slide 4: Our growth journey
Our growth journey Henrik Hjalmarsson President & CEO
Slide 5: Topics to cover
5 Topics to cover ▪ This is Inwido ▪ Strategic cornerstones & value creation model ▪ 2021 achievements ▪ A growth focused strategy ▪ New long term targets ▪ Updated reporting structure ▪ Outlook 2022 ▪ Summary
Slide 6: This is Inwido
6 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 7: Our cornerstones for sustainable and profitable growth
7 Our cornerstones for sustainable and profitable growth A decentralized structure drives Focus on consumer driven customer and results focus markets for profitable growth Sustainable growth driven Synergies drive structural through acquisitions improvements
Slide 8: A clear and proven value creation model
8 A clear and proven value creation model Our approach 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 value
Slide 9: The value creation model put into action
9 The value creation model put into action Facilitates profitable growth with sustainability at its core ▪ Joint sourcing delivers savings on direct materials which improves profitability, while pushing suppliers to improve and innovate ▪ Best practice in technology improving supply chain efficiency
Slide 10: The value creation model put into action
10 The value creation model put into action Facilitates profitable growth with sustainability at its core ▪ Decision making closer to the market and customers drives agility, speed and relevance ▪ Strong local business ownership and accountability strengthens business and results focus
Slide 11: The value creation model put into action
11 The value creation model put into action Facilitates profitable growth with sustainability at its core ▪ Many local P&Ls with strong follow up drives increased transparency and rapid response to deviations ▪ The Inwido scorecard is a proven way to improve businesses in our industry
Slide 12: The value creation model put into action
12 The value creation model put into action Facilitates profitable growth with sustainability at its core ▪ Strong cash generation allows continuous investments to improve the businesses as well as value creating acquisitions for continuous growth
Slide 13: The value creation model put into action
13 The value creation model put into action Facilitates profitable growth with sustainability at its core ▪ Continuous investments for growth and value creating acquisitions are pillars of Inwido’s business model ▪ With cash focus on acquired businesses we generate further resources for growth creat
Slide 14: Consistent shareholder value creation since the IPO
14 Consistent shareholder value creation since the IPO Further strengthened after clarification of the value creation model 8 000 14.00 26 September 2014 7 000 IPO 12.00 6 000 10.00 Earnings per share, SEK 5 000 Sales, SEKm 8.00 4 000 6.00 3 000 4.00 2 000 1 000 2.00 0 0.00 2013 2014 2015 2016 2017
Slide 15: 2021 achievements
15 2021 achievements ▪ Q3 2021 – tenth consecutive quarter with strengthened margins and sixth quarter in a row with organic growth ▪ 2021 has seen favorable markets in general with continued strong order intake for Inwido ▪ Continuous high price pressure on input materials and transportation ▪ Firs
Slide 16: A growth focused strategy
inwido A growth focused strategy
Slide 17: Accelerating our growth ambitions
17 Accelerating our growth ambitions Three pragmatic elements in our strategy ▪ Leverage a strong base to take the next steps towards long term profitable growth ▪ Maintain profit and organic growth momentum while driving M&A more actively Operational Invest for Value creating excellence to drive gr
Slide 18: Invest for growth
18 Invest for growth Dedication and prioritization of resources to drive organic growth 1 Because e-Commerce is a considerable growth potential Investments for continued growth ▪ Marketing and SEO/SEM ▪ Supply chain capacity in e-Commerce ▪ Selective entry into new geographies 2 Because the right as
Slide 19: Operational excellence to drive efficiency & margins
19 Operational excellence to drive efficiency & margins Lean businesses with high reliability and resilience wins in the market 1 Because profit and margin potential on some larger units is still considerable Step change performance of ▪ Elaborate customer and segment proposition ▪ Leverage increase
Slide 20: Value creating M&A
20 Value creating M&A Our expertise & focus A key growth driver Products and technology From good to great ▪ Accelerate M&A activities to deliver material acquired growth annually Clear In market ▪ Strive for positive multiple arbitrage geographical and/or and leverage two step acquisitions in focus
Slide 21: A fragmented European industry landscape creates opportunity
21 A fragmented European industry landscape creates opportunity ▪ Top four window and door groups have a combined market share of less than 10% ▪ Many thousands of window and door businesses creates a considerable opportunity for consolidation ▪ With many family-owned businesses approaching generati
Slide 22: New long-term targets
inwido New long-term targets
Slide 23: Step changing our growth and sustainability ambitions
23 Step changing our growth and sustainability ambitions New long-term targets for Inwido ▪ Our present financial targets have been in place since the IPO in September 2014 whereas the business and our performance have developed considerably ▪ In our updated strategy we are increasing our growth amb
Slide 24: Sustainable value through sustainable business
24 Sustainable value through sustainable business Long-term targets for Inwido Sustainable development Revenue SEK 20 billion by 2030 Meet the 2030 Science Based Profitability >15% Return On Operating Capital Targets for reduction of greenhouse gas emissions Capital Net Debt in relation to Operating
Slide 25: Updated reporting structure
Updated reporting structure
Slide 26: Increased transparency and stronger growth focus
26 Increased transparency and stronger growth focus A new reporting structure and organization supporting long term targets ▪ Increasing the granularity of reporting to improve overall transparency ▪ Clearly highlighted growth segments, signaling our intent to drive growth more aggressively ▪ Report
Slide 27: From two to four reported Business Areas
27 From two to four reported Business Areas Increases transparency and more relevant for understanding the business Sales (SEKm) and Op EBITA (%) per segment Business Area Scandinavia Business Area Eastern Europe Inwido Sales, SEKm Op EBITA, (%) Business Area e-Commerce Business Area Western Europe
Slide 28: Stronger focus on growth and sustainable development
28 Stronger focus on growth and sustainable development Lean and business minded group management leading the new organization President & CEO Henrik Hjalmarsson Executive Vice President CFO & deputy CEO Human Resources, Peter Welin Organization & Sustainability Lena Wessner ETRI Executive Vice Pres
Slide 29: Outlook 2022 and summary
inwido Outlook 2022 and summary
Slide 30: Outlook
30 Outlook ▪ Entering Q4 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 market demand in 20
Slide 31: Summary
31 Summary Från Mid Cap Handelsbanken ▪ A stable base with improved margins and a solid balance sheet as a platform for growth ▪ Accelerated growth ambitions, organic and through acquisitions - Considerable consolidation opportunity on the European market ▪ New long term targets highlighting focus o
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Slide 33: For a sustainable Inwido
For a sustainable Inwido Lena Wessner SVP HR, Organisation & Sustainability
Slide 34: We give more than we take
34 We give more than we take Why? Sustainable business drives sustainable value Today and for future generations
Slide 35: Sustainability is the heart of our business model
35 Sustainability is the heart of our business model ▪ Improving energy efficiency of buildings by supplying high quality windows and doors ▪ Increased expectations on sustainability, for our products and the impact of our business ▪ Our Sustainability Compass supports our ambitions as a responsible
Slide 36: Inwido long term ambition – carbon footprint
36 Inwido long term ambition – carbon footprint ”We will reduce our carbon dioxide emissions with 50 percent by 2030 & be carbon neutral by 2050” Scope 1 & 2
Slide 37: Sustainable business drives sustainable value
37 Sustainable business drives sustainable value We need natural resources to do responsible business Empowered colleagues make a difference Aligning with society creates more opportunities
Slide 38: Inwido's sustainability compass
38 Inwido’s sustainability compass Be an environmental friend Why? We need natural resources to do responsible business How? ▪ We provide products that drive energy efficiency and savings ▪ We decrease climate and environmental impact from our operations and suppliers ▪ We use wood from sustainable
Slide 39: Inwido's sustainability compass
39 Inwido’s sustainability compass Be an environmental friend Why? We need natural resources to do responsible business How? ▪ We provide products that drive energy efficiency Färdplan 2045 and savings ▪ We decrease climate and environmental impact from our operations and suppliers ▪ We use wood fro
Slide 40: Inwido's sustainability compass
40 Inwido’s sustainability compass Be a good place to work Why? Empowered colleagues make a difference How? ▪ We develop our employees and make them feel involved and valued ▪ We invest in health and safety ▪ We strive for equal opportunities ▪ We actively work to improve employee satisfaction
Slide 41: Inwido's sustainability compass
41 Inwido’s sustainability compass Be a good place to work Why? Empowered colleagues make a difference Employee satisfaction survey How? ▪ We develop our employees and make them feel 74% involved and valued 71% 66% 68% 67% 67% 68% ▪ We invest in health and safety 59% 61% 51% ▪ We strive for equal op
Slide 42: Inwido's sustainability compass
42 Inwido’s sustainability compass Be a responsible business Why? Aligning with society creates more opportunities How? ▪ We have zero tolerance regarding corruption and unethical business behavior ▪ We demand responsible behavior from all suppliers and partners ▪ We comply with strict codes of cond
Slide 43: Inwido's sustainability compass
43 Inwido’s sustainability compass Be a responsible business Why? Aligning with society creates more opportunities How? ▪ We have zero tolerance regarding corruption and unethical business behavior Pihla Group ▪ We demand responsible behavior from all suppliers and partners The Easy Steps toward ▪ W
Slide 44: Inwido's sustainability compass
44 Inwido’s sustainability compass Be an environmental friend Be a good place to work Be a responsible business Why? Why? Why? We need natural resources to do responsible business Empowered colleagues make a difference Aligning with society creates more opportunities How? How? How? ▪ We provide prod
Slide 45: Inwido's 8 sustainability KPIs
45 Inwido’s 8 sustainability KPI´s The result of our work in 2020 ▪ Energy consumption ▪ Co2 emissions (scope 1 and 2) ▪ Wood from sustainable forestry ▪ Employees in rural areas ▪ Equality in management ▪ Accidents (with lost working days) ▪ CoC for suppliers (direct material) ▪ Sick leave
Slide 46: Inwido's 8 sustainability KPIs
46 Inwido’s 8 sustainability KPI´s The result of our work in 2020 Improved by 7.1% ▪ Energy consumption Co2 (kg per thousand wings) ▪ Co2 emissions (scope 1 and 2) Scope 1 & 2 ▪ Wood from sustainable forestry 5.2 4.9 4.6 ▪ Employees in rural areas ▪ Equality in management ▪ Accidents (with lost work
Slide 47: Inwido's 8 sustainability KPIs
47 Inwido’s 8 sustainability KPI´s The result of our work in 2020 Improved by 16.4% ▪ Energy consumption Lost time accidents (per 1 000 000h) ▪ Co2 emissions (scope 1 and 2) ▪ Wood from sustainable forestry 15.4 16.5 13.8 ▪ Employees in rural areas ▪ Equality in management ▪ Accidents (with lost wor
Slide 48: Inwido's 8 sustainability KPIs
48 Inwido’s 8 sustainability KPI´s The result of our work in 2020 ▪ Energy consumption CoC for Direct Material suppliers ▪ Co2 emissions (scope 1 and 2) 100 90 ▪ Wood from sustainable forestry 80 70 ▪ Employees in rural areas 60 50 90.9% 95.7% 96.5% 40 ▪ Equality in management 30 20 ▪ Accidents (wit
Slide 49: Raising the bar on our sustainability journey
49 Raising the bar on our sustainability journey ▪ Introduce two new public KPIs ▪ Hazardous and non-hazardous waste ▪ Number of discrimination and harassment cases ▪ Committing to Science Based targets to meet the Paris agreement 2050 ▪ We have an ambition to be 75% Taxonomy aligned on windows and
Slide 50: Sustainability summary
50 Sustainability summary ▪ Good trend on our KPI’s and added two new ▪ Long term ambition – our carbon footprint ▪ Science based target commitment ▪ Taxonomy alignment
Slide 51: Coffee-break
Coffee-break Program starts 10:05
Slide 52: Capital Markets Day agenda - Part 2
52 Capital Markets Day agenda - Part 2 10:05 Panel talk ”from small to big” Jonna Opitz & Antti Vuonokari The numbers that matter Peter Welin 11:05 Q&A and close of program Inwido Group Mgmt 11:30 Meet Inwido Group Management for lunch
Slide 53: Inwido's recipe for success "from small to big"
53 Inwidos recipe for success “from small to big” Three themes for panel talk: ▪ The Inwido world of big & small ▪ In the Inwido model we trust ▪ The future success model Jonna Opitz Antti Vuonokari
Slide 54: Finance
Finance Peter Welin CFO & deputy CEO
Slide 55: At a historic high margin level – 12.2% LTM
55 At a historic high margin level – 12.2% LTM Inwido performance, sales (SEKm) and Op EBITA (%) 8 000 26 September 2014 2013 – 2021. LTM 14% IPO Sales +71% 7 000 CAGR 7% 2008 – 2013 12% 6 000 Sales -24% 10% 5 000 8% 4 000 6% 3 000 4% 2 000 1 000 2% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 56: 2021 - a year of improved performance
56 2021- a year of improved performance Jan – Sept 2021 best performance ever CAGR (- 2021.LTM), 9% CAGR (-2021.LTM), 6% Op EBITDA, SEKm 8 000 1 200 7 000 Sales, SEKm 1 000 6 000 800 5 000 5 550 831 4 802 4 818 4 882 4 000 4 597 600 670 3 964 606 3 000 3 495 3 750 538 556 546 400 489 2 000 404 Jan -
Slide 57: Ten quarters of improved margins – sales growth last six
57 Ten quarters of improved margins – sales growth last six Op EBITA margin per quarter 16% +2.2% units +0.1% units 14.4% 14.4% 14.5% +1.3% units +1.5% units 14% +0.2% units 13.3% +0.1% units +0.9% units 12.9% +0.3% units 12.0% 12.2% 11.8% 12.2% 11.8% 12% 11.5% 11.6% 11.6% 10.6% 10.9% 10.9% 10% Op E
Slide 58: Financial Targets
58 Financial Targets Outcome September 2021 SEK 20 billion by 2030 SEK 7,349m Revenue With a further focus on growth, Inwido intends to grow, organically as well as through acquisitions, to reach a total revenue of at least SEK 20 billion by 2030 +9.8%, LTM >15% Return on operating capital Profitabi
Slide 59: Financial Target: Revenue – Sales growth
59 Financial Target: Revenue – Sales growth CAGR of 6% since the IPO in 2014 8 000 Sales (SEKm) and growth LTM (%) 18% 16% 7 000 14% 6 000 12% 5 000 10% Sales, SEKm 8% Growth, % 4 000 6% 3 000 4% 2% 2 000 0% 1 000 -2% 0 -4% 2014.Q4 2015.Q2 2015.Q4 2016.Q2 2016.Q4 2017.Q2 2017.Q4 2018.Q2 2018.Q4 2019
Slide 60: Financial Target: Profit - Return On Operating Capital
60 Financial Target: Profit - Return On Operating Capital Improved EBITA in combination with lower Operating Capital 7 000 Operating Capital (SEKm) and Return On Operating Capital (%) 18.0% 16.0% 6 000 Target 15% SEK -630m 14.0% 5 000 Return on Operating Capital, % 12.0% Operating Capital, SEKm 4 00
Slide 61: Financial Target: Capital – Net Debt vs Op EBITDA
61 Financial Target: Capital – Net Debt vs Op EBITDA Improved Op EBITDA in combination with lower Net Debt 3 000 Net Debt (SEKm) and Net Debt vs EBITDA 3.5 3.0 2 500 Target < x2.5 2.5 Net Debt vs OP EBITDA 2 000 Net Debt, SEKm 2.0 1 500 1.5 1 000 1.0 500 0.5 0 0.0 2014.Q4 2015.Q2 2015.Q4 2016.Q2 201
Slide 62: Capex impacted by longer delivery times of machines
62 Capex impacted by longer delivery times of machines Capex 2014 – 2021.Q3 Capex (SEKm) and Capex / Sales (%) 250 4.5% 4.0% 200 3.5% 3.0% Capex in % of Sales 150 2.5% Capex, SEKm 2.0% 100 1.5% 50 1.0% 0.5% 192 142 176 198 218 199 181 106 0 0.0% 2014FY 2015FY 2016FY 2017FY 2018 FY 2019 FY 2020 FY 20
Slide 63: Financial Target: Dividend
63 Financial Target: Dividend Dividend payments of SEK 1,072m (SEK 18.5 per share) since the IPO in 2014 5.0 Dividend per share (SEK) and Dividend / Net Result (%) 80% 4.5 70% Dividend in % of Net Result 4.0 Dividend per share, SEK 60% 3.5 Target 50 % of 3.0 Net Result 50% 2.5 40% 2.0 30% 1.5 20% 1.
Slide 64: New segment structure from 2022 with four segments
64 New segment structure from 2022 with four segments From two segments (North and South) to four segments External Sales per Segment Business Area Scandinavia September 2021, LTM Business Area Eastern Europe Eastern Europe Inwido 23% Business Area Scandinavia Western Europe, 8% e-Commerce 54% e-Com
Slide 65: New segment: Scandinavia
65 New segment: Scandinavia Information Scandinavia Sales (SEKm) and Op EBITA (%) Sales, LTM SEK 4,098m 2018 – 2021.LTM 5 000 15.0% Op EBITA (%), LTM 13.8% Number of Business Units 13 4 000 Consumer share, external sales 72% 10.0% Op EBITA, (%) 3 000 Sales, SEKm CAGR 2018 – 2021.LTM 5% Markets 2021
Slide 66: New segment: Eastern Europe
66 New segment: Eastern Europe Information Eastern Europe Sales (SEKm) and Op EBITA (%) Sales, LTM SEK 1,707m 2018 – 2021.LTM 2 000 12.0% Op EBITA (%), LTM 8.0% 1 600 Number of Business Units 7 8.0% Op EBITA, (%) Consumer share, external sales 63% Sales, SEKm 1 200 CAGR 2018 – 2021.LTM -3% 800 Marke
Slide 67: New segment: e-Commerce
67 New segment: e-Commerce Information e-commerce Sales (SEKm) and Op EBITA (%) Sales, LTM SEK 940m 2018 – 2021.LTM 1 000 20.0% Op EBITA (%), LTM 17.6% 800 16.0% Number of Business Units 1 Consumer share, external sales 100% 600 12.0% Op EBITA, (%) Sales, SEKm CAGR 2018 – 2021.LTM 18% 400 8.0% Marke
Slide 68: New segment: Western Europe
68 New segment: Western Europe Information Western Europe Sales (SEKm) and Op EBITA (%) Sales, LTM SEK 570m 2018 – 2021.LTM 800 12.0% Op EBITA (%), LTM 7.9% Number of Business Units 4 600 Op EBITA, (%) 8.0% Sales, SEKm Consumer share, external sales 81% CAGR 2018 – 2021.LTM 0% 400 Markets 2021 Engla
Slide 69: Liquidity to acquire sales of SEK 4bn
69 Liquidity to acquire sales of SEK 4bn Utilized and unutilized as per September 2021 ▪ Available liquidity of SEK 2.4 bn 1 800 ▪ Liquidity and balance sheet to acquire sales of 1 600 Available liquidity approx. SEK 4bn based on normal profit 1 400 of SEK 2 433m multiples and margins. 1 200 ▪ With
Slide 70: Q&A session
Q&A session In room: Raise hand/use microphone On Webcast: Write question on platform
Slide 71: Thanks for taking part of the Inwido 2021 Capital Markets Day
71 Thanks for taking part of the Inwido 2021 Capital Markets Day To learn more about Inwido follow our story on LinkedIn