Year-End Report January-December 2011

A year of average results but important progress

Fourth quarter of 2011

• Net sales amounted to SEK 1,410 million (1,391), which, adjusted for currency and structural effects, represents a decline of  2%
• Operating profit (EBITA) amounted to SEK 128 million (143), excluding items affecting comparability amounting to a negative SEK 2 million (negative 59)
• Excluding items affecting comparability, the operating margin (EBITA) was 9.1% (10.3)
• Profit after tax was SEK 77 million (6)
• Cash flow from operating activities was SEK 380 million (294)

January – December 2011

• Net sales amounted to SEK 5,050 million (5,149), which, adjusted for currency and structural effects, represents a decline of  1%
• Operating profit (EBITA) amounted to SEK 476 million (527), excluding items affecting comparability amounting to a negative SEK 69 million (negative 81)
• Excluding items affecting comparability, the operating margin (EBITA) was 9.4% (10.2)
• Profit after tax was SEK 208 million (207)
• Cash flow from operating activities was SEK 547 million (383)
• Inwido paid dividends totalling SEK 301 million
• The strong cash flow reduced net debt to SEK 1,371 million – SEK 130 million lower than for the corresponding period in 2010.

CEO Håkan Jeppsson comments:
”The year 2011 did not turn out to be quite the year we expected. Despite good growth in the industrial market, the year ended up being something of a disappointment. The somewhat weaker profits were a direct consequence of weakened demand in the consumer market. Nonetheless, Inwido succeeded in growing organically in several markets and overall we have captured market shares in most of our markets. At the same time, we also improved our earnings considerably in our European markets. Naturally, the uncertain economic climate was a strong contributing factor behind our decreased consumer sales in 2011.

To maintain our competitiveness, we have initiated a process to streamline the production structure within the Group. This has entailed closing factories in Denmark, Russia and Sweden during the year. Our intensive efforts to enhance efficiency and reduce the amount of capital tied up also resulted in strong cash flow and reduced net debt while it was also possible to pay a dividend to shareholders. The uncertain economic climate continues to make it difficult to assess how demand will develop. We will therefore continue to work with efficiency enhancement measures in 2012.

Despite 2011 not fully meeting our own expectations, I can nonetheless say that Inwido strengthened its market position over the year and took important steps towards realising its consumer strategy. With our ambition to develop new products for comfortable everyday home life for our consumers, and by meeting increasing needs for energy-saving window and door solutions, we are facing up to the challenges that the new year offers.”

Please read the entire 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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