Slide 1: Interim report January – June 2024
Interim report January – June 2024 President & CEO Fredrik Meuller and CFO Peter Welin
Slide 2: Europe's leading window group
2 Europe’s leading 34 business units with 4,200 employees in 12 countries window group Inwido in short Improving indoor life via unique windows and doors Nordic market leader – strong in UK and Ireland Listed on Nasdaq Stockholm since 2014 Impressive profitable growth track record Net sale
Slide 3: Clear strategic direction and financial targets
3 Clear strategic direction and financial targets Increased focus on execution – ”harvesting” BUSINESS MODEL KEY VALUE DRIVERS FINANCIAL TARGETS Attractive market driven by green transition Revenue SEK 20 billion by 2030 Strong position in core geographies >15% Return On Operating Capital Proven sta
Slide 4: Q2 Highlights
4 Q2 Highlights Inwido back on growth track Order intake increased across all business areas Pockets of higher activity in consumer markets New build segment remains challenging, primarily in Finland and Sweden Solid profitable growth in e-Commerce and Western Europe Increased M&A activity
Slide 5: Q2 in numbers
5 Q2 in numbers Organic order intake increased, sales and profit also developed favorably Order intake Op EBITA +22% Net sales SEK 263 million (261) Net debt vs Op EBITDA SEK 2,331 million (2,263) 1.4x (0.7) Order backlog Op EBITA margin +68% to SEK 2,654 million 11.3% (11.6)
Slide 6: Special achievements during the quarter
6 Special achievements during the quarter 15% net sales increase and more than Inwido recognized among Europe’s 500 Elitfönster recognized for sustainability doubled profit in BA e-Commerce climate leaders by Financial Times work and recycling of windows
Slide 7: Inwido's largest order to date
7 Inwido’s largest order to date Carlson order value approx. EUR 9 million Joint development of 900 units between Glenveagh & Dublin City Council 40% Social Housing, 40% Cost Rental & 20% Affordable Housing Q3 2024 start with final installation Q2 2026
Slide 8: Q2 sustainability highlights
8 Q2 sustainability highlights KPI’s moving in the right direction The key performance indicator for accidents is now below 10 (9.9) – an important milestone. Work continues towards the goal of zero accidents. Sick leave (both short- and long-term) has decreased significantly thanks to various m
Slide 9: January – June in numbers
9 January – June in numbers New build market still challenging and affecting the H1 numbers Op EBITA Net sales SEK 354 million (430) ROOC EPS SEK 4,142 million (4,358) 13.1% (16.8) SEK 2.89 (5.26) Op EBITA margin 8.5% (9.9)
Slide 10: Financials Q2 2024
Inwido Financials Q? 2024
Slide 11: Higher Op EBITA compared to last year
11 Higher Op EBITA compared to last year Lower EPS due to items affecting comparability and positive FX last year Q2 Q1-Q2 SEKm 2024 2023 Change 2024 2023 Change LTM 2312 Net sales 2,331 2,263 3% 4,142 4,358 -5% 8,755 8,970 Gross Profit 597 605 -1% 1,005 1,096 -8% 2,226 2,298 Gross margin, % 25.6 26
Slide 12: Organic sales decline of 5 percent, equal to SEK -128m
12 Organic sales decline of 5 percent, equal to SEK -128m Based on actual sales 2024 compared to Pro Forma 2023 Sales in Q2 (SEKm) from 2023 to 2024 3,000 +9% +0% -5% 2,500 1 196 -128 2,000 1,500 1,000 500 2,263 2,459 2,460 2,331 0 Sales Q2 2023 AC Sales acquired Pro Forma Q2 Currency effects Pro Fo
Slide 13: Q2 Scandinavia
13 Q2 Scandinavia Sales SEKm and Op EBITA %, LTM More positive consumer market in Denmark Continues to be affected by low volumes in the new build market, especially in Sweden Danish business units benefit from increased activity in the consumer market Sales -7%, to SEK 1,117 million (1,197)
Slide 14: Q2 Eastern Europe
14 Q2 Eastern Europe Sales SEKm and Op EBITA %, LTM Continued challenging market in Finland Finland is hampered by the strong volume decline in the new build segment, efficiency measures taken Historically strong comparable profit figures Sales -22%, to SEK 441 million (569) Operating EBITA
Slide 15: Q2 e-Commerce
15 Q2 e-Commerce Sales SEKm and Op EBITA %, LTM Increased market shares and substantial profit growth Continued positive development - in all markets April all-time-high monthly order intake Sales 15%, to SEK 311 million (271) Operating EBITA margin 10.8% (3.9) Order intake +16% Order ba
Slide 16: Q2 Western Europe
16 Q2 Western Europe Sales SEKm and Op EBITA %, LTM Positive order intake and improved profitability Continued profitable growth also during the second quarter, both organic and acquired Sidey continues to perform well, accompanied by Carlson in Ireland Sales +108%, to SEK 471 million (227)
Slide 17: Margin decline in Q2 vs LY related to Eastern Europe
17 Margin decline in Q2 vs LY related to Eastern Europe Sales decline of 22 percent in Eastern Europe Sales in Q2, SEKm, from 2023 to 2024 OP EBITA in Q2, SEKm, from 2023 to 2024 2500 8 300 -80 2 -128 40 245 -12 250 2000 23 38 -49 200 1500 150 1000 100 500 50 2,263 2,331 261 263 0 0 Sales Scandinavi
Slide 18: Margin above pre-pandemic level
18 Margin above pre-pandemic level Op EBITA slightly behind last year due to Eastern Europe Sales and Op EBITA % in Q2 for 2019 - 2024 3,000 13.3% 14.0% 11.8% 12.0% 11.6% 11.3% 12.0% 2,500 10.9% 10.0% 2,000 8.0% 1,500 6.0% 1,000 4.0% 500 2.0% 1,710 1,719 2,009 2,475 2,263 2,331 0 0.0% 2019 2020 2021
Slide 19: Cash flow on the same level as last year
19 Cash flow on the same level as last year Increased capex has been compensated with changes in working capital SEKm 2024 2023 Change Acquisitions of tangible and intangible assets in SEKm and % of sales Cash flow from operating activities 275.0 281.7 -2% 400 4.1% 4.5% Changes in working capital 16
Slide 20: Net debt vs EBITDA on same level as in March 2024
20 Net debt vs EBITDA on same level as in March 2024 Cash flows in Q2 have already compensated dividend payment in May Net Debt SEKm, Net Debt vs Op EBITDA 2,000 2.5 1,800 Net Debt / OP EBITDA incl IFRS 16: x1.4 (0.7) 1,600 2.0 1,400 Net Debt / OP EBTIDA excl IFRS 16: x1.1 (0.4) 1,200 1.5 1,000 800
Slide 21: ROOC below target due to lower EBITA in SEKm
21 ROOC below target due to lower EBITA in SEKm ROOC of 13.1 percent, above pre-pandemic level Average Operating Capital (SEKm), and ROOC (%) 7,300 20% 17.9% 18.3% 17.6% 17.8% 17.9% 16.9% 16.8% 16.2% 18% 6,900 15.7% 16.4% 15.4% 14.3% 16% 13.7% 6,500 12.6% 13.1% 14% 11.5% 10.6% 12% 6,100 10% 5,700 8%
Slide 22: Improved order intake and backlog vs LY – like for like
22 Improved order intake and backlog vs LY – like for like Order intake growth of 10 percent in Q2, excluding acquisitions Order intake in Q2, SEKm, 2019 - 2024 Order backlog in Q2, SEKm, 2019 - 2024 3,000 3,000 275 2,500 2,500 2,000 2,000 914 1,500 1,500 1,000 1,000 500 500 1,916 1,950 2,495 2,754
Slide 23: Summary & Outlook
23 Summary & Outlook Increased order intake in all business areas, also organically – solid order backlog offers comfort for H2 and beyond Uncertainty still prevailing, but decreased inflation and interest rates are positive signs for the consumer market New build remains challenging in many m
Slide 24: Thank you! Questions?
24 Thank you! Questions? Upcoming events October 22 – Q3 report 2024 December 11 – Capital Markets Day February 4 – Q4 and year-end report 2024 Join our journey on LinkedIn