Interim report January-June 2012

Uncertain external conditions cause mixed development

April – June 2012

• Net sales amounted to SEK 1,258 million (1,351), which, adjusted for currency and structural effects, represents a decline of 9%
• Operating profit (EBITA) amounted to SEK 120 million (163), excluding items affecting comparability amounting to a negative SEK 54 million (negative 12)
• Excluding items affecting comparability, the operating margin (EBITA) was 9.6% (12.0)
• Profit after tax was SEK 39 million (83)
• Cash flow from operating activities was SEK 56 million (120)
• Inwido has divested the Inwido Home Improvement business area

January – June 2012

• Net sales amounted to SEK 2,263 million (2,350), which, adjusted for currency and structural effects, represents a decline of 6%
• Operating profit (EBITA) amounted to SEK 124 million (194), excluding items affecting comparability amounting to a negative SEK 77 million (negative 12)
• Excluding items affecting comparability, the operating margin (EBITA) was 5.5%(8.3)
• Profit after tax was SEK 17 million (91)
• Cash flow from operating activities was negative in the amount of SEK 126 million (negative 52)
• Net debt amounted to SEK 1,321 million on 30 june 2012, a decrease of SEK 301 million compared with the year-earlier period

CEO Håkan Jeppsson comments;
“The first half of 2012 was pervaded by short-sightedness and instability in Europe. These external factors affect all of the markets in which Inwido operates but have had differing significance for the individual businesses. On the whole, it can be said that most of our markets, except Sweden and Finland, have continued to develop in line with or better than in the year-earlier period. On the positive side, I would particularly like to highlight Denmark, where, despite tough market conditions, we have captured considerable market shares and increased our earnings. Following a year of major structural changes, the business of our components company, Supply, is now also healthy and stable. The divergence from last year is mainly to be found in Sweden and, to a certain extent Finland, which both experienced a very strong comparative period in 2011. Since Sweden accounts for a little less than 40 percent of our overall sales, an erratic trend and instability in this market has a greater impact on the Group as a whole than when the same thing happens in one of our smaller markets. Consequently, although eight out of ten business areas are delivering in line with or better than the previous year, overall profitability has declined compared with last year.

The explanation is to be found in the hesitation among Swedish consumers caused by general economic concerns, a weaker property market and the mortgage ceiling, which has, in particular, contributed to the considerable decline among manufacturers of prefabricated homes. To meet this more demanding market, we have, over the past year, implemented structural changes in our Swedish operations, while investing in both marketing and product development.

During the quarter, we also sold the Home Improvement business area. We believe this business will develop even better in another environment and we can, instead, focus our resources on pursuing our strategy and becoming the European leader in windows and doors. The second half of 2012 has now begun with market conditions that still feel a little uncertain, although somewhat more stable than before. Naturally there are a number of factors that may continue to affect consumers’ willingness to buy moving forward and we are prepared to shift either up or down a gear as necessary.”

Read the full report in the pdf attached

For further information, please contact:
Håkan Jeppsson, President and CEO phone 46 (0)70-550 1517 or 46 (0)10-451 45 51
Peter Welin, CFO phone 46 (0)70-324 3190 or 46 (0)10-451 45 52
Jonna Opitz, SVP Marketing, Sales & Communication phone 46 (0)72-211 9010 or 46 (0)10-451 45 58

About Inwido
Inwido is Northern Europe’s leading supplier of innovative, environmentally friendly, wood-based window and door solutions. The company has operations in Sweden, Denmark, Finland, Norway, Poland, Russia, the UK and Ireland, as well as exports to a large number of other countries. The Group markets some 20 strong local brands including Elitfönster, SnickarPer, Hajom, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 3,500 employees and generated sales of slightly more than SEK 5 billion in 2011. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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