Inwido AB · OMXSTO:INWI
Inwido AB — FY2021 Earnings Presentation
26 slides from Inwido AB's earnings presentation, February 2022
Slide 1: Year-end report January – December 2021
Year-end report January – December 2021 Follow our story
Slide 2: Topics to cover
2 Topics to cover Från Mid Cap Handelsbanken ▪ This is Inwido ▪ Q4 and year-end highlights ▪ 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 7.7 billion 2021 ▪ Return on Operating Capital 16.9% ▪ Approx. 4,600 employees Production sites marked on
Slide 4: A clear and proven value creation model
4 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 5: Q4 highlights – A strong growth quarter
5 Q4 highlights – A strong growth quarter ▪ Favorable markets in general – both consumer and industry – continued good order intake ▪ Record high growth rate – seventh consecutive quarter with organic growth ▪ Continued strengthened positions on core markets ▪ Considerable M&A efforts to deliver on
Slide 6: Q4 in numbers
6 Q4 in numbers ▪ Sales growth of 21% to SEK 2,175 million (1,798), organically +19% ▪ Operating EBITA SEK 244 million (231) ▪ Operating EBITA margin 11.2% (12.9%) ▪ Order intake of +7% (+5% adjusted for acquisition) ▪ Order backlog increase of 62% to SEK 1,856 million (+56% adjusted for acquisition
Slide 7: Q4 – Business Area South
7 Net sales Q4 – Business Area South 1 000 4 000 800 3 000 600 400 2 000 Strong growth and improved margin 200 ▪ Larger Danish units continue to grow sales and 0 1 000 External net sales split between market segments, LTM SEKm Jan-Mar Apr-Jun Jul-Sep Oct-Dec SEKm margins in a favorable consumer mark
Slide 8: Q4 – Business Area North
8 Net sales Q4 – Business Area North 1 400 1 200 5 000 4 000 1 000 800 3 000 600 Strong growth and order backlog 400 200 2 000 ▪ Sales growth fueled by strengthened positions on External net sales split between market segments, LTM 0 SEKm Jan-Mar Apr-Jun Jul-Sep Oct-Dec 1 000 SEKm positive consumer
Slide 9: 2021 – Inwido's full year development
9 2021 – Inwido’s full year development ▪ Best year so far in Inwido’s history ▪ Exceeds new long-term targets ▪ Sales growth of 16% to SEK 7,725 million (6,681), ▪ ROOC 16.9% ▪ Considerably improved alignment with the Taxonomy screening criteria to 61% ▪ Operating EBITA SEK 907 million (729) with o
Slide 10: Continued progress in our sustainability work
10 Continued progress in our sustainability work 2021 • Carbon dioxide emissions: 39.1 percent decrease • Waste: 2.8 percent decrease • Hazardous waste: 20.7 percent decrease • Sustainable forestry: 97 percent certified wood • In December 2021, Inwido committed to the SBTi • 61 percent of Inwido's s
Slide 11: Value creating M&A
11 Value creating M&A Our expertise & focus A key growth driver Products and From good to technology great ▪ Accelerate M&A activities to deliver material acquired growth annually Geographical In market ▪ Strive for positive multiple arbitrage focus and/or and leverage two step acquisitions in segme
Slide 12: Sustainable value through sustainable business
12 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 13: Stronger focus on growth and sustainable development
13 Stronger focus on growth and sustainable development New structure and organization from January 1 President & CEO Henrik Hjalmarsson Executive Vice President CFO & deputy CEO Human Resources, Peter Welin Organization & Sustainability Lena Wessner ETRI Executive Vice President Executive Vice Pres
Slide 14: Outlook
14 Outlook ▪ Entering 2022 with a strong order backlog and strengthened positions ▪ Near term healthy activity levels on both consumer and industry markets ▪ Hard to predict how input material inflation, transportation costs as well as lifted Covid restrictions will impact market demand in 2022 ▪ Co
Slide 15: Short term priorities
15 Short term priorities Från Mid Cap Handelsbanken 1. Maintain a close eye on input material inflation for swift and resolute price adjustments 2. Keep customer focused strong execution in a dynamic environment 3. Continued increased M&A efforts 4. Value generating investments in growth initiatives
Slide 16: Q4 in numbers
inwido Q4 in nUMbers
Slide 17: Record growth and highest operating EBITA
17 Record growth and highest operating EBITA Q4 Full-year SEKm 2021 2020 Change 2021 2020 Change Net sales 2 175 1 798 21% 7 725 6 681 16% Gross margin, % 25,9 26,8 - 26,2 26,0 - Operating EBITA 244 231 6% 907 729 25% Operating EBITA margin, % 11,2 12,9 - 11,7 10,9 - EBITA 262 230 14% 922 712 30% EB
Slide 18: Lower margin in Q4 mainly due to material inflation
18 Lower margin in Q4 mainly due to material inflation Op EBITA (SEKm) and Op EBITA margin (%) in Q4 and January - December 12,9% 14% 700 11,6% 11,7% 11,2% 12% 10,9% 600 9,7% 10% 500 8% 400 6% 300 200 4% 100 2% 211 231 244 646 729 907 0 0% October - December January - December 2019 2020 2021
Slide 19: Financial Targets outcome 2021
19 Financial Targets outcome 2021 Outcome 2021 Revenue SEK 20 billion by 2030 SEK 7,725m +16% Profitability >15% Return on operating capital 16.9% Capital Net Debt in relation to Operating EBITDA <2.5x 0.6x Dividend Approximately 50% of Net Profit Proposal: SEK 6.15
Slide 20: Sales growth of 21% in the quarter
20 Sales growth of 21% in the quarter Sales and order intake Q4 (SEKm) 2 300 2 100 1 900 1 700 1 500 1 300 1 100 900 700 1 813 1 798 2 175 1 475 1 633 1 748 500 Reported sales + 21% Reported order intake + 7% 2019 2020 2021 Acquired sales/order intake 2021
Slide 21: Order backlog +62% vs Q4 2020 – highest Q4 ever
21 Order backlog +62% vs Q4 2020 – highest Q4 ever Order backlog (SEKm) 2 500 2 000 1 500 1 000 500 855 793 770 1 142 1 856 0 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 Q3 21 Q4 21 Order backlog (SEKm) Acquired order backlog 2021 (SEKm)
Slide 22: ROOC improved in 2021 from 12.6% to 16.9%
22 ROOC improved in 2021 from 12.6% to 16.9% Av. Operating Capital has decreased by SEK 609m since Q1 2020 Average Operating Capital and ROOC SEKm 7 000 16,9% 18% 16,4% 15,7% 16% 6 000 14,3% 12,6% 14% 5 000 11,5% 11,4% 11,1% 11,0% 10,9% 10,8% 12% 9,8% 10,2% 10,3% 10,6% 4 000 9,3% 9,5% 10% 3 000 8% 6
Slide 23: Net Debt vs. Op EBITDA has improved from x1.1 to x0.6
23 Net Debt vs. Op EBITDA has improved from x1.1 to x0.6 IFRS 16 Debt of SEK 348m Net Debt, Net Debt vs Op EBITDA SEKm 3 000 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, excl IFRS 16 Net Debt vs EBITDA, incl IFRS 16
Slide 24: Sales CAGR of 7% since IPO 2014
24 Sales CAGR of 7% since IPO 2014 Sales growth of 57% since 2014, Op EBITA growth of 81% Sales (SEKm) and Op EBITA (%) SEKm 9 000 14% 8 000 11,9% 11,7% 11,3% 12% 10,9% 7 000 10,2% 10,2% 9,9% 9,7% 10% 6 000 5 000 8% 4 000 6% 3 000 4% 2 000 2% 1 000 4 916 5 220 5 672 6 371 6 667 6 631 6 681 7 725 0 0
Slide 25: Summary
25 Summary Från Mid Cap Handelsbanken ▪ 2021 established 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 hig
Slide 26: Questions?
26 To learn more about Inwido & our sustainability ambitions see video on webpage, “Our promise” Questions? Upcoming events April – Annual Report 2021 April 28 – Q1 report May 5 – AGM July 15 – Q2 report October 25 – Q3 report …and join our journey on LinkedIn