Year-end report January-December 2014

This information is such that Inwido AB (publ) is obliged to publish in accordance with the Swedish Securities Market Act and/or Financial Instruments Trading Act. The information was submitted for publication on February 10, 2015, at 07:45.

Strong finish to a good year 

Fourth quarter of 2014

• Net sales rose by 19 percent to SEK 1,421 million (1,193). This represents an increase of 12 percent for comparable units, adjusted for currency effects
• Order bookings were up by 21 percent for comparable units
• EBITA increased to SEK 176 million (75), after items affecting comparability of SEK 0 million (negative 45), and the EBITA margin increased to 12.4 percent (6.3)
• Operating EBITA increased to SEK 176 million (120) and the operating EBITA margin rose to 12.4 percent (10.1)
• Earnings per share increased to SEK 1.89 (0.58)

January-December 2014

• Net sales rose by 14 percent to SEK 4,916 million (4,300). This represents an increase of 8 percent for comparable units, adjusted for currency effects
• Order bookings were up by 14 percent for comparable units
• EBITA increased to SEK 376 million (294), after items affecting comparability of a negative SEK 125 million (51), and the EBITA margin grew to 7.7 percent (6.8)
• Operating EBITA increased to SEK 502 million (345) and the operating EBITA margin rose to 10.2 percent (8.0)
• Earnings per share increased to SEK 3.12 (2.52)
• The Inwido share was listed on the Nasdaq Stockholm exchange on 26 September
• The Board of Directors proposes a dividend of SEK 2.00 per share

The CEO comments:
"Inwido has continued to enjoy a healthy sales trend, with increased market share on key markets in the fourth quarter. Sales were up by 12 percent for comparable units, measured in Swedish kronor. The positive earnings trend persisted during the quarter, with an increase of 47 percent in operating profit, giving an operating EBITA margin of 12.4 percent. Order bookings also moved in the right direction, 21 percent up during the quarter, and the order backlog was 30 percent higher than at the same point in 2013. On the whole we have seen an improvement in all key ratios during our best fourth quarter to date, and we are strengthening our position as Europe’s largest manufacturer of windows.

For the full year 2014, sales increased by 8 percent organically, measured in Swedish kronor, and operating profit rose by 46 percent, i.e. by SEK 157 million, to SEK 502 million. The operating EBITA margin finished at 10.2 percent.

Our various segments gave a mixed performance. For Denmark and Finland, 2014 was their best result to date, and we are also winning market share on both these markets. However, the underlying trend for these two segments varies considerably. The Finnish market continues to be characterised by persistently weak development, while the market in Denmark is experiencing a positive trend. Denmark is also reaping the benefits of the strategically important acquisitions of e-commerce companies JNA and SPAR. In Sweden it is mainly the industry market that is performing well, although the consumer market showed some strength during the autumn. The Norwegian market is currently extremely uncertain, which is affecting the impact of changes and initiatives that we are in the process of introducing on the sales side. However, the market trend justifies decisions relating to radical measures taken in Norway, which have boosted competitiveness. Developments outside the Nordic region have also been mixed this quarter. Ireland was the strongest individual market for us in 2014 outside the Nordic region.

We are of the opinion that international developments remain somewhat unpredictable. One of the key indices for our business is consumer confidence, and the variations in trends in this area have been evident for our markets. We are also in the middle of what is clearly our quietest period ‒ winter. As always during times of uncertainty, we direct our focus on issues that we are able to control and that strengthen our competitiveness in the longer term. Significant cornerstones in this work include continual improvements to cost effectiveness, product development and growth in Europe.

To conclude, I would like to highlight that 2014 was an extremely good year for Inwido, while there is still potential for improvement within several areas. There is every reason to look to the future with a certain degree of confidence, despite uncertain conditions elsewhere."

MALMÖ, FEBRUARY 10 2015

Håkan Jeppsson
President and CEO 

The the entire report in the pdf attached

For more information, please contact:
Inwido AB
Håkan Jeppsson, President and CEO Phone: 46 (0)10-451 45 51 or 46 (0)70-550 15 17
Peter Welin, CFO Phone: 46(0)70-324 3190 or 46(0)10-451 45 52 E-mail: peter.welin@inwido.com

About Inwido
Inwido is Europe’s largest supplier of windows and doors. The company has operations in Sweden, Denmark, Finland, Norway, Poland, the UK, Austria 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, Hemmafönster, Outline, Tiivi, Pihla, Diplomat and Sokolka. Inwido has approximately 3,300 employees and generated sales of slightly more than SEK 4.9 billion in 2014. The Group's headquarters are located in Malmö, Sweden. For further information, please visit www.inwido.com

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