Year-End Report January-December 2010

A strong result for 2010

Fourth quarter of 2010

• Net sales decreased by 6 percent to SEK 1,391 million (1,473); adjusted for currency effects, net sales increased by 1 percent
• Operating profit (EBITA) amounted to SEK 84 million (118)
• Adjusted for items affecting comparability, the operating margin (EBITA) was 10.3 percent (10.4)
• Profit after tax was SEK 6 million (10)
• Cash flow from operating activities increased to SEK 294 million (283)

January – December 2010

• Net sales rose by 2 percent to SEK 5,149 million (5,026); adjusted for currency effects, net sales rose by 7 percent
• Operating profit (EBITA) rose to SEK 446 million (348)
• The operating margin (EBITA) increased to 8.7 percent (6.9)
• Adjusted for items affecting comparability, the operating margin (EBITA) increased to 10.2 percent (7.7)
• Profit after tax rose to SEK 207 million (52)
• Cash flow from operating activities was SEK 383 million (510)
• Inwido AB acquired 34 percent of the shares in Inwido Denmark, following which the process of acquiring the outstanding minority interests in Inwido’s subsidiaries is largely complete
• Net debt amounted to SEK 1,501 million at the end of the year, a decrease of SEK 491 million compared with the year-earlier period

CEO Håkan Jeppsson comments:
“2010 was an excellent year for Inwido, with currency adjusted sales increasing by 7 percent. Operating profit rose to SEK 527 million, an improvement of 35 percent, and with an operating margin that reached just over 10 percent. We further strengthened our market position on the Nordic markets through the development of new customer and consumer adapted solutions. The economic climate improved compared to 2009 but has remained uncertain and challenging in many countries. For Inwido it was chiefly the markets outside the Nordic region that performed more poorly than expected.

During the fourth quarter, sales adjusted for currency effects increased by 1 percent. The operating margin of 10.3 percent is in line with last year’s, despite the unusually early, cold and snowy winter.

In 2011 we plan to boost our investments in growth and our focus on the consumer. While we are increasing our offensive investments, we are also aware that certain external factors will have a negative impact on us in future, such as the rising price of raw materials. Naturally Inwido needs to adapt to its changing circumstances, but always in a manner that corresponds to our vision of improving people’s well-being. Following a somewhat weak start to 2011 due to the harsh winter, we are now looking ahead to continued positive development in 2011.”

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 Communication and Branding 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 3,800 employees and generated sales of slightly more than SEK 5 billion in 2009. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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