Summary of Inwido’s Capital Market Day, 7 November 2019
Inwido will today be hosting a Capital Market Day in Stockholm. Agenda items will include, what value-adding measures the new Simplify model of governance has entailed, Inwido’s updated acquisition strategy and a look back on developments in acquisitions, e-commerce expansion and purchasing strategies over the past five years, an in-depth look into three of the Group’s companies and a review of the Group’s financial targets.
Inwido’s strategy for profitable growth rests on five pillars: Highly decentralized business with accountable people, continuous growth via acquisitions of strong companies, prioritizing residential consumer driven businesses, tight local cost efficient supply chains and synergies from sourcing, finance, technology and leadership. The focus of the Capital Market Day is on illustrating and clarifying these strategies.
In his introductory presentation, CEO Henrik Hjalmarsson will reflect on the benefits created by the Group’s new governance model, which were also manifested in the recently reported third quarter earnings.
“For the third quarter, we delivered improved earnings, while strong cash flow brought net debt down to 2.5x EBITDA. This development, towards improved earnings despite challenging markets, testifies to the strength of our new governance model, Simplify. Although sales did decline by 1 percent to SEK 1,665 million (1,682), we nonetheless increased our earnings to SEK 203 million (202), mainly thanks to early cost saving initiatives and a more advantageous mix overall.”
Asger Drewes Jørgensen, EVP Inwido Syd, presents the growth experienced by the Group’s e-Commerce business unit in recent years. At the same time, he affirms the Group’s aggressive growth ambitions looking ahead – the objective being to double the scale of the operations. (See attached PDF for graphs)
The presentations by companies: Carlson, from Ireland; CWG Choices, from the UK; and Elitfönster, from Sweden, will include the following sales and earnings figures for 2018: (See attached PDF for graphs)
The financial section will conclude the day’s presentations. Here, CFO Peter Welin concludes that nine acquired companies accounted for a total increase in sales of 18 percent over the period from their acquisition in 2014 and up until September 2019, corresponding to SEK 1.6 billion. In September 2019, the rolling 12-month operating EBITA margin (%) for these companies was 11 percent and ROOC was 10 percent. At the same time, he will also show the cost savings, amounting to SEK 92 million, that the Group has achieved this year to date, with the three largest companies in business area Inwido Nord accounting for SEK 85 million.
In conclusion, CEO Henrik Hjalmarsson summarizes:
“We feel that our business units, with the support of our new model of governance, are well-positioned to benefit from further potential for growth and profitability, regardless of how the markets themselves develop. We rest assured by the fact that there is an underlying demand for the products that we offer, as consumers throughout Europe prioritize a better indoor environment. Our companies are also strong market or segment leaders that have historically delivered favourable cash flow regardless of market conditions. Last, but not least, we perceive numerous exciting, potential acquisition candidates that we believe could generate additional value for both the Group and its shareholders.”
For more information, please contact:
Henrik Hjalmarsson, President and CEO Tel.: 46 (0)76 846 20 46
Peter Welin, CFO and deputy CEO Tel.: 46 (0)703 24 31 90
E-mail: peter.welin@inwido.com
About Inwido
Inwido owns and develops companies that improve people’s everyday lives indoors with various products and services. Today, Inwido is Europe’s largest windows group and a natural home for the region’s strongest companies in the areas of comfort, indoor climate and safety. In 2018, Inwido achieved sales of SEK 6.7 billion and an operating EBITA margin of 9.9 percent. The Group has some 4,500 employees in total, with operations in Denmark, Estonia, Finland, Ireland, Lithuania, Norway, Poland, Romania, the UK, Sweden and Germany.
