Inwido in brief Company presentation 2014
2 Inwido at a glance: Largest European window group Clear Nordic market leader Smart, wood-based windows and doors Key markets 4,3 Billion SEK Sales in 2013 Presence 3000 employees Degree of consolidation 20+ brands Sales in more than 15 markets Market size(meur) High 300 Med 400 High 550 Market position 2013 Low 100 High 590 1 1 2 4 Low 1,950 Low 1,100 Low 800 Source: Company information, local industry organisations
3 How we became One Group: Expansion followed by consolidation One Group consolidation Consumer-oriented strategy 100% ownership of acquired companies Beginning Swedish expansion Smaller add-ons Focus on brand names and product portfolio Nordic expansion More than 30 acquisitions of leading local brands completed Sourcing synergies Entry into selected European markets Focus on gaining economies of scale and synergies Production optimisation by rationalisation of production plants Efficiency gains in procurement, sales and marketing Further streamline operations Merger of Myresjöfönster and Elitfönster Sales EUR 45m 1996 1999 2000 2004 2005 2009 2010 2014
4 What we do: Improving people s well-being Our vision Inwido shall be Europe s leading supplier of environmentally adapted windows and doors by focusing on people s needs. By always assuming the consumer perspective Inwido can improve people s wellbeing. Our business concept We develop and deliver innovative products with attractive design and associated services to improve people s well-being by lowering the cost of living, contributing to a better environment and by increasing security and comfort in selected European markets Smart homes that improve people s well-being Our market and target customers Our market is the European windows and doors market We target the end consumer via different channels when driving the business We focus on the residential housing market segment
5 Our brands: A portfolio built on deep consumer insight Identifying consumer types The biggest bunch: My home is my castle The ruralist: Real quality of life is found in the countryside The social gathererer: Welcome to my home The economist: Energy waste is a sin The status seeker: One day my home will stun you all The indifferent: More important things in life than the home The home connoisseur: I set the trend and structuring portfolio to meet their needs Value for money: Low/mid-end brand Popular Reassurance: Mid-end brand Personal statement: High-end brand Ready to use: Mid-end brand B2B-brands: Industry customers
6 Our supply chain: Delivering on made-to-measure 1. Country specific consumer preferences 2. Products ordered made to measure Mastery of complex logistics chain 3. Wide range of customisable components Glass treatment... frame, door......and numerous other components Frame Sash Glazing Bead Glazing Gasket Pane Weather Seal Lock Roller Espagnolette Lock Receiver Large number of delivery addresses......small orders per delivery address......almost all orders made-tomeasure......results in highly complex logistics and planning Handle Hinge Side Hinge Friction Break Bottom Bead Closing Side
7 Our sales: Reaching end consumers through local mix of channels Distribution channels Sales by customer (2013) DYI Retailers Middle man Direct sales Construction companies 20% House factories 24% Direct sales 24% Retailers Specifiers Small building companies Large building companies Manufacturers of prefab. homes Middleman 12% Retail 34% Industrial Consumer Interaction with decision maker in distribution channel Affects demand and preferences of final decision maker
Business overview 8 Our value chain: Combining local presence with large-scale benefits Innovation Concept/Product development Inbound logistic Manufacturing process Outbound logistic Marketing/ Brand portfolio Sales split per segment (2013) EBE 5% Other 10% Norway 9% Sweden 37% Finland 25% Denmark 15%
9 Future growth: Underlying favourable market trends Urbanisation Housing shortage and pent-up renovation needs (e.g. Miljonprogrammet buildings in Sweden) Environmental regulations Increasing energy efficiency requirements e.g. window insulation Consumer cost focus Increased consumer awareness of energy and environmental costs of windows Security Integral part of individuals sense of security Long term needs Renovations Quest for home identity among consumers drives renovation demand Design Return of craftsmanship and tradition Comfort Smartified products make life comfortable and simple
10 Inwido going forward 1 Market recovery with increased demand 2 3 Further streamlining of operations Continued focus on product development Structural support for long-term positive market trend High pent-up demand in renovation segment, especially in Sweden New-build bound to recover across Nordic region in longer term Additional potential in further rationalisations and improvements within: Product platforms Factory footprint Lean production Increased focus on higher value-add products and Smart windows for improved comfort Next generation windows and doors concepts with accessories for e.g. lower cost of living, smart design and higher security 4 5 6 Increased demand for Selective European expansion and environmentally friendly, Nordic consolidation green products Pricing structure optimisation and cross-selling Increasing focus on environmentally friendly, energy efficient, sustainable and green products Trend supports potential increase in replacement rate of windows and doors Potential to grow with profitability in selected European markets, segments and distribution channels Selective acquisitions in Europe and add-on acquisitions in the Nordic region Greenfield Opportunity to increase price diversification, improve pricing structure and continue work on brand strategy Cross-border initiatives to support product synergies and cross-selling between markets
11 Resilient profitability: Maintained margins throughout the downturn SEK 1.1bn lower sales since 2008, but with improved profitability 6,000 18% 5,000-1.1bn 15% Sales (SEKm) 4,000 3,000 2,000 1,000 7.6% 7.7% 10.2% 9.4% 7.5% 8.0% 9.1% 4.4% 7.0% 12% 9% 6% 3% Operating EBITA margin % 0 5,639 5,026 5,149 5,050 4,607 4,300 4,510 1,998 2,208 2008 2009 2010 2011 2012 2013 LTM Q2 2014 YTD Q2 2013 YTD Q2 2014 0% Sales OP EBITA margin 1 Profit before volume focus and successful strategic rationalisation initiatives have paved the way for significant operating leverage and margin upside as volumes return Source: Company information 1) Operating EBITA margin, excl. items affecting comparability
12 Our business segments: An overview Sweden Denmark Norway Net sales 2013: MSEK 1 737 Market position: 1 Production facilities in: Vetlanda, Bjurträsk, Hajom, Väröbacka, Hånger, Lenhovda 63% Share of Group sales 2013 Net sales 2013: MSEK 695 Market position: 2 37% Production facilities in: Holstebro, Farsoe, Ugerlose, Nykoeping Share of Group sales 2013 85% 15% Net sales 2013: MSEK 411 Market position: 4 Production facilities in: Frekhaug Share of Group sales 2013 91% 9% Sweden Other Denmark Other Norway Other Finland EBE (Emerging Business Europe) Net sales 2013: MSEK 1 156 Market position: 1 Production facilities in: Haapajärvi, Ruovesi, Eskola Share of Group sales 2013 75% 25% Net sales 2013: MSEK 243 Market presence: Poland, Great Britain, Ireland, Austria Production facilities in: Berwick, Sokolka Share of Group sales 2013 95% 5% Finland Other EBE Other
13 The management team dedicated to the task Håkan Jeppsson President & CEO, acting Senior Vice President, EBE Born: 1961 Employed since: 2009 Peter Welin CFO Born: 1973 Employed since: 1998, member of Group Management since 2004 Jonna Opitz Senior Vice President, Marketing, Sales & Communication Born: 1969 Employed since: 2009 Espen Hoff Senior Vice President, Norway Born: 1965 Timo Luhtaniemi Senior Vice President, Finland Born: 1963 Employed since: 2012 Employed since: 2006 Mads Storgaard Mehlsen Senior Vice President, Denmark Born: 1971 Mikael Carleson Senior Vice President, Sweden Born: 1962 Employed since: 2007 Employed since: 2012 Lena Wessner Senior Vice President, Human Resources, Organisation & Sustainability Born: 1961 Employed since: 2010 Lars Petersson Senior Vice President, Operations Born: 1969 Employed since: 2013
Contact information: E mail: ir@inwido.com Phone: +46 10 451 45 50 Inwido AB Engelbrektsgatan 15 211 33 Malmö Sweden