Inwido AB · OMXSTO:INWI
Inwido AB — Q1 2015 Earnings Presentation
19 slides from Inwido AB's earnings presentation, Apr 27, 2015
Slide 1: Interim report Jan-Mar 2015
Interim report Jan-Mar 2015 April 27, 2015
Slide 2: The largest European window group in a fragmented market
2 The largest European window group in a fragmented market Largest European window group Clear market leader in the Nordic region • Largest window group in Europe Leading position • Clear market leader in the Nordic region Presence • Net sales in 2014 of SEK 4.9 billion • Operating EBITA margin in 2
Slide 3: A fragmented market and business environment
3 A fragmented market and business environment Fragmented markets Wood vs plastics Coordinated Made to measure thinking and local operations Local products Demanding logistics Seasonality
Slide 4: Q1, by far the weakest quarter
4 Q1, by far the weakest quarter 1,600 16 13.3 1,400 14 12.3 12.4 12 1,200 10 11.6 SEK million 1,000 10.1 8 9.2 800 6 % 600 4 2.7 2 400 0.5 0 200 -2 -1.9 0 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2013 2013 2013 2014 2014 2014 2014 2015 Net sales Operating EBITA margin
Slide 5: Most important topline correlation is consumer confidence
5 Most important topline correlation is consumer confidence Sweden - Sales and Consumer Confidence Index Norway - Sales and Consumer Confidence Index 105 30 110 30 100 25 100 25 Sales LTM Index Sales LTM Index 95 20 90 20 CCI % LTM CCI % LTM 90 15 80 15 85 10 70 10 80 75 5 60 5 70 0 50 0 1104 1301 1
Slide 6: Q1: Good growth and higher profit
6 Q1: Good growth and higher profit Q1 MSEK 2015 2014 Change Net sales 1,047 907 8%* Gross margin, % 21.2 12.9 - Operating EBITA 29 4 625% Operating EBITA margin, % 2.7 0.5 - EBITA 29 -71 nm EBITA margin, % 2.7 -7.8 - Profit after tax 20 -59 nm *Net sales is adjusted for comparable units and currenc
Slide 7: Q1: Good start of the year
7 Q1: Good start of the year Inwido development in Q1 2015 • Strong sales growth and higher profitability • Order intake slowed down as expected compared to Q4 • Growth in important consumer segments – very positive • Positive development in Denmark, Sweden and Ireland • Intended strategic change in
Slide 8: Q1: Order intake slowed down – but in the right channels
8 Q1: Order intake slowed down – but in the right channels Sales and order intake January - March (MSEK) 1 300 1 200 1 177 47 1 100 1 047 43 1 111 1 000 907 909 900 857 800 700 600 500 Sales in total +15% Order intake in total +6% 2013 2014 2015 JNA/SPAR contribution
Slide 9: Order intake stable excluding construction
9 Order intake stable excluding construction Order intake Q2 2014 – Q1 2015 80% 72% 70% 60% 50% 40% 30% 20% 12% 11% 8% 8% 6% 10% 3% 0% Q2 2014 Q3 2014 Q4 2014 Q1 2015 -10% -20% -14% Inwido excl. Construction Construction Note: Comparable units
Slide 10: Q1: Improvement in operating margin
10 Q1: Improvement in operating margin Operating EBITA (MSEK and %) January - March 40 4% 2.7% 30 3% 29 20 2% 10 1% 0.5% 4 0 0% -10 -1% -17 -20 -1.9% -2% 2013 2014 2015 JNA/SPAR contribution Operating EBITA (%)
Slide 11: Q1 2015: Order book is strong +13% in total
11 Q1 2015: Order book is strong +13% in total Order book MSEK 1 000 900 786 800 24 694 700 636 600 557 500 400 300 200 100 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 JNA/SPAR contribution
Slide 12: Q1 Sweden: Improved profitability
12 Q1 Sweden: Improved profitability • Volume growth in both the industry and consumer market • Improved operating EBITA margin due to higher volumes and better efficiency • Further strategic actions initiated to increase consumer market volumes • Total sales: +18% • Total order book: +10% Net sales
Slide 13: Q1 Finland: Very weak general market demand!
13 Q1 Finland: Very weak general market demand! • Still weak general market demand in Finland • Sales and profit drop due to last years ”one-time-effect” and poor market conditions • Consumer confidence decreasing • Total sales: -4% • Total order book: -5% Net sales per quarter and LTM Op. EBITA per
Slide 14: Q1 Denmark: Positive development driven by consumer market
14 Q1 Denmark: Positive development driven by consumer market • Positive sales development in all channels • Profit improvement compared to Q1 2014 • Increase in market shares continues • Acquired company JNA/Spar well integrated • Total sales:+58% • Total order book: +47% Net sales per quarter and
Slide 15: Q1 Norway: Restructuring measures starting to pay off
15 Q1 Norway: Restructuring measures starting to pay off • Volume drop due to decrease in unprofitable door sales • Decrease in market window volumes – market share increase for Inwido! • Continued strong focus on sales efforts • A lot of hard work remains…. • Total sales: -27% • Total order book: -
Slide 16: Q1 EBE: Improved profitability – Ireland the driver behind
16 Q1 EBE: Improved profitability – Ireland the driver behind • Ireland: Good development in both industry and consumer markets • UK: Focus on sales efforts – profitability strongly improved • Poland: Focus on internal cross border supply • Austria in a start up phase still – market is weakening • T
Slide 17: Some comfort about outlook 2015 – but many risks…
17 Some comfort about outlook 2015 – but many risks… • Many political and financial uncertainties… • Strong underlying demand for renovation as well as new built (especially in Sweden) • Consumer confidence very important and correlating to Inwido´s performance • Continued mixed market development a
Slide 18: Strategy for profit growth in the next 3-5 years
18 Strategy for profit growth in the next 3-5 years 1 Capitalizing on strong Nordic position 2 Organic and acquisition based growth in Europe 3 Develop new products for the smart home 4 Improve cost efficiency and flexibility in supply chain
Slide 19: Thank you! Questions?
Thank you! Questions?